Discover the benefits for sustainable investments in Colombia
Investing in Colombia, the country of beauty, means investing in a destination that bets on significant transformations in the industries to achieve sustainable modes of production. Here, you will find growth opportunities through sustainable practices and your investments, besides being profitable, will be environmentally friendly.
Colombia has demonstrated a strong interest in its transitioning to sustainability and has made a great progress in its plans to consolidate itself as a hub within the region for this type of investment, improving conditions for businesspeople and investors who wish to invest sustainably. Discover here the benefits you will find in the country of beauty if your investment aligns with sustainability in Colombia.
Investment benefits in Colombia
One of the benefits that stand out most for sustainable investments in Colombia is found in the taxes and facilities that some companies have to alleviate their operational costs.
One of these benefits is for companies that make investments in control, conservation and improvement of the environment. They are entitled to deduct 25% of the invested amount from their income in the taxable period during which the investment was made. This would alleviate the amount of money needed to establish a business in Colombia.
Energy-related investments and Non-Conventional Sources
Renewable energy projects also have their own benefits. On the one hand, the sale of electricity generated based on wind, biomass or agricultural waste, solar, geothermal, or sea energy will be exempt from income tax for 15 years, starting in 2017.
On the other hand, incentives have been developed for investments in non- conventional energy sources. Such is the case with those investments destined to research, development and production of electric energy with non-conventional sources. These can deduct 50 % of their income tax.
Finally, equipment, machinery and services for the production and use of non- conventional sources, as well as the measurement of potential resources and efficient energy management, are exempt from VAT.
Therefore, if your investment project is related to this field, in Colombia you will find significant aids and incentives aimed at making your investment in the country more efficient and profitable. Do not forget that your project must be evaluated and certified by the UPME.
Carbon neutral, reforestation and environmental commitment
Companies that demonstrate a significant reduction in their greenhouse gas emissions also receive incentives in the country of beauty. If your company is working towards a greener world, you can mention these efforts in the National Registry of Greenhouse Gas Emissions Reduction, a web platform that will allow you to register these kinds of projects.
Another impactful initiative that companies in Colombia can make is to reforest areas of across the country, enhancing the beauty of nature. These companies are recognized with the Forest Incentive Certificate (CIF), an economic prize from the National Government. Finally, those companies that are able to show an effort to contribute to environment protection have a tax benefit.
In addition, the Green Business Office of the Ministry of Environment promotes sustainable consumption and production strategies, aligning itself with the government's environmental principles and contributing to the transformation of the country's industries.
Benefits in legal procedures
Colombia has decided to make life easier and more pleasant for investors when they arrive in the country. For this reason, it has created two virtual help points focused on guiding the management of costs, time and regulations when establishing a business in the country. These are the Single Business Window (VUE) and the One-Stop Investment Shop (VUI).
Moreover, entities such as ProColombia are hubs of information and advisory services for foreign investors who have decided to settle in the country of beauty and grow with Colombia.
How to know if your investment is sustainable?
Colombia has already established criteria for identifying sustainable investments. These must take decisions based on environmental, social and corporate governance factors, achieving a measurable environmental impact.
Another way to make this distinction is to analyze how aligned the company is with the Sustainable Development Goals, set forth by the UN.
Furthermore, the country has the Colombian Environmental Seal, which endorses good business practices and allows the businessmen to make investment decisions based on sustainability factors.
Finally, there are Benefit and Collective Interest Companies (BIC), which is a legal recognition for companies that have redefined their business model to create environmental, social and economic value that goes beyond financial gain.
Sustainable investments in the country of beauty
Colombia has witnessed successful cases of sustainable investments that have achieved the expected objectives. One notable example is Yara, a Norwegian fertilizer company that is a world leader and provider of environmental solutions.
The company has been in Colombia for more than 20 years and has production plants in Cartagena and Yotoco, Valle del Cauca. The company is currently implementing a program to transform its production plant in Cartagena and reduce atmospheric emissions by 90%. This investment contributes to the goal of becoming a carbon neutral company by 2050.
Colombia has its doors open for companies like Yara and for other sustainable investors looking to expand and develop their businesses through environmentally friendly practices. Do not miss the opportunity to engage in an ecosystem of businesses committed to sustainability that is growing steadily. Find more information here.
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