Skip to main content
Menu: Transversal
  • Exports
    • Colombia Trade
    • Export Route
    • Opportunities in Real Time
    • Exportable Offer Catalogue
    • Colombia Exports Services
  • Investment
    • Invest in Colombia
    • Opportunities Map
    • Legal Guide
    • Legal Directory
  • Tourism
    • Vacations
    • Meetings
    • Entrepreneurs
    • Feel the rhythm
  • Colombia country brand
    • Colombia.co
    • News
    • Visit Colombia
    • Colombia Country Brand
letter
Header
  • Exports
    • Colombia Trade
    • Export Route
    • Opportunities in Real Time
    • Exportable Offer Catalogue
    • Colombia Exports Services
  • Investment
    • Invest in Colombia
    • Opportunities Map
    • Mapa de oportunidades
    • Legal Guide
    • Guía legal
    • Legal Directory
  • Tourism
    • Vacations
    • Meetings
    • Entrepreneurs
    • Feel the rhythm
  • Colombia country brand
    • Colombia.co
    • News
    • Actualiadad
    • Visit Colombia
    • Visita Colombia
    • Colombia Country Brand
    • Marca Colombia

Invest in Colombia

Invest in Colombia
Main navigation
  • Home
  • Why Colombia?
  • Investment Sectors
    • Agricultural products & Food production
      • Processed foods
      • Cocoa, by-products and chocolate
      • Fruits and vegetables
      • Palm industry
      • Livestock
      • Commercial plantation forests
    • Energy
      • Conventional energy
      • Renewable energy
    • Private equity and venture capital
      • Private equity funds
      • Venture capital
    • Infrastructure
      • Energy, transmission and telecommunications network
      • Social and sanitary infrastructure
      • Transport infrastructure
    • Hospitality and tourism infrastructure
      • Hospitality and tourism infrastructure
    • Real Estate
      • Real Estate
    • Manufactoring industries
      • Aeronautic
      • Automotive
      • Cosmetic and personal care
      • Packaging
      • Fashion industry
      • Petrochemical industry
      • Construction materials
    • Healthcare services and life sciences
      • Medicinal and cosmetic cannabis
      • Pharmaceutical sector
      • Healthcare services
    • Information technology and creative industries
      • Audio-visual and entertainment
      • Data Centers
      • Shared Services Centers
      • Outsourcing of Services BPO
      • Software and IT Services
  • How to Invest
    • Investment incentives
      • Legal and tax incentives
      • Free Trade Zones
    • Taxes in Colombia
    • How to establish your company at Colombia
      • Hiring a workforce in Colombia
      • How to buy real state
      • How to incorporate your company
      • Visas and migratory regulation
    • How to import
  • Articles and Assets
    • Articles
    • Documents and white papers
  • EN
  • ES
lsearch
  • EN
  • ES
Navegación principal
  • Home
  • Why Colombia?
  • Investment Sectors
    • Agricultural products & Food production
      • Processed foods
      • Cocoa, by-products and chocolate
      • Fruits and vegetables
      • Palm industry
      • Livestock
      • Commercial plantation forests
    • Energy
      • Conventional energy
      • Renewable energy
    • Private equity and venture capital
      • Private equity funds
      • Venture capital
    • Infrastructure
      • Energy, transmission and telecommunications network
      • Social and sanitary infrastructure
      • Transport infrastructure
    • Hospitality and tourism infrastructure
      • Hospitality and tourism infrastructure
    • Real Estate
      • Real Estate
    • Manufactoring industries
      • Aeronautic
      • Automotive
      • Cosmetic and personal care
      • Packaging
      • Fashion industry
      • Petrochemical industry
      • Construction materials
    • Healthcare services and life sciences
      • Medicinal and cosmetic cannabis
      • Pharmaceutical sector
      • Healthcare services
    • Information technology and creative industries
      • Audio-visual and entertainment
      • Data Centers
      • Shared Services Centers
      • Outsourcing of Services BPO
      • Software and IT Services
  • How to Invest
    • Investment incentives
      • Legal and tax incentives
      • Free Trade Zones
    • Taxes in Colombia
    • How to establish your company at Colombia
      • Hiring a workforce in Colombia
      • How to buy real state
      • How to incorporate your company
      • Visas and migratory regulation
    • How to import
  • Articles and Assets
    • Articles
    • Documents and white papers
Síganos:
Invest
now!
zonas francas
Santa Marta, Colombia
Breadcrumb
  1. Home
  2. How to Invest
  3. Investment incentives
  4. Free Trade Zones

Free Trade Zones

BENEFITS

Colombia has a competitive free trade zone regime that grants the following benefits to businesses involved in the production of goods or the provision of services located in these zones:

  • Single income tax rate of 20% (the current rate in the National Customs Territory is 32% for 2020, 31% for 2021).
  • Customs taxes (VAT and customs duties) are not accrued or paid on merchandise that is introduced into the Free Trade Zone.
  • Possibility of exporting from a Free Trade Zone to third-party countries.
  • Goods of foreign origin introduced into the free trade zone may remain there indefinitely.
  • VAT exemption for raw materials, parts, inputs, and finished goods that are sold from the national customs territory to industrial users of Free Trade Zone goods or services.

The regime includes two types of Free Trade Zones which have the same benefits:

Multi-user Free Trade Zones (legally called Permanent Free Trade Zones)

They are areas managed by one operator/user where multiple new companies that enjoy special tax and customs treatment are established.

To settle in a Permanent Free Trade Zone and to perform commercial or industrial activities and/or to provide services, the company must meet the following investment and employment requirements, based on the total amount of assets, within the first three (3) years of the project:

TOTAL ASSETS (USD) INVESTMENT AMOUNT (USD) DIRECT JOBS
0 – 112,538 0 7
112,764 – 1,125,388   225,078 20
1,125,614– 6,752.331  1,125,388 30
More than 6,752,331  2,588,393 50

* This information is presented in US dollars at the exchange rate of USD 1 = COP 3,900. For 2020, the Current Legal Minimum Monthly Wage (SMMLV, per its Spanish acronym) is COP 877,803. The SMMLV as well as the exchange rate are subject to change.

Single Company or Special Permanent Free Trade Zone Regime

This regime allows for a free trade zone to be established in any part of the country for a new legal entity to invest in a project with a significant social and economic impact.

Investment and employment requirements for a project to operate under the Single Company Free Trade Zone are detailed below. These requirements, with a few exceptions, must be fulfilled within three years from the date a Free Trade Zone is declared.

TYPE ASSETS (USD) INVESTMENT (USD) DIRECT JOBS OTHER REQUIREMENTS PERIOD
GOODS - 34,146,26 150c - 3 years
SERVICES - 2,276,417 - 10,471,522 10,471,522 - 20,943,045 > 20,943,045 500 350 150 - 3 years
HEALTH SERVICES - 2,276,417 - 10,471,522 10,471,522 - 20,943,045 > 20,943,04   Related jobs: 250 Related jobs: 175 Related jobs: 75 3 years
AGROINDUSTRIAL PROJECTS - 17,073,134   or 500 direct or related job 3 years
PORT COMPANIES - 34,146,269 20 Related jobs: 50 3 years
COMPANIES ALREADY IN OPERATION 34,146,26 157,528,12 - Double taxable net income 3 years
DAIRY SECTOR COMPANIES - 1,138,208 50 - 3 years (Investment) 9 years (Employment)

In Free Trade Zones for Goods, for every additional 23,000 SMMLV above the minimum required investment, the number of jobs to be created may be reduced by 15. Minimum required is 50 people.

*Amounts defined in Current Legal Minimum Monthly Wages (COP 887,803 for 2020.). Exchange rate USD 1 = COP 3,900.

How to invest
How To Invest
  • Investment incentives
    • Legal and tax incentives
    • Free Trade Zones
  • Taxes in Colombia
  • How to establish your company at Colombia
    • Hiring a workforce in Colombia
    • How to buy real state
    • How to incorporate your company
    • Visas and migratory regulation
  • How to import
Pre Footer
  • About Procolombia
  • Ministries and Embassies
  • Regional Information
  • Documents and White papers
Procolombia
Colombia Co
Procolombia
Colombia Co
  • Calle 28 No 13A - 15 Floor 35-36 Bogotá - Colombia
  • PBX: +571 5600100 - Fax: +571 5600104
  • Monday through Friday 8:30 a.m. - 5:30 p.m.
Footer
  • Citizen Services
  • Complaints
  • Contact Us
  • Work with us
  • Sustainability Report
follow us:
Footer Final
  • About this site
  • Terms of use
  • Personal Data Protection
Síguenos: