How to Start a Business in Colombia

Invest Pacific provides reliable resources to guide you in formal and efficiently starting your business.

Guide to Starting and Formalizing a Business

Access this practical guide from the Cali Chamber of Commerce to learn the legal and administrative steps required to establish a company.

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One-Stop Investment Platform

Consult this national tool that consolidates the procedures required to establish a company in Colombia.

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Tax Incentives for Investing in Colombia and Valle del Cauca

Access national and local tax benefits that enhance the profitability of your investment.

INCENTIVES FOR INVESTMENTS IN ENVIRONMENTAL CONTROL AND IMPROVEMENT

Companies may annually deduct 25% of the investments made in environmental control and improvement from their income tax.

INCENTIVES FOR INVESTMENT IN RESEARCH, TECHNOLOGICAL DEVELOPMENT, OR INNOVATION

The amount invested in research, technological development, or innovation may be deducted annually at 30% from income tax.

FORESTRY INCENTIVE CERTIFICATE

It represents the recognition of 50% of the establishment and maintenance costs of forest plantations, applicable up to the fifth year.

TAX DEDUCTION FOR LABOR PAYMENTS TO EMPLOYEES WITH DISABILITIES

Companies may deduct 200% of labor payments (salaries and social benefits) made to employees with disabilities from income tax.

TAX DEDUCTION FOR FIRST-TIME EMPLOYEE HIRING

Taxpayers required to file an income tax return may deduct 120% of the wages paid to employees under the age of 28.

BENEFITS FOR COMPANIES LOCATING IN “AREAS MOST AFFECTED BY THE ARMED CONFLICT”

A tax exemption on income tax payments is granted until 2027; income and complementary taxes will be paid on a gradual basis. Fourteen municipalities in Valle del Cauca are classified as ZOMAC.

Department-Level Incentives

DISCOUNT ON THE INDUSTRY AND COMMERCE TAX

Certain municipalities offer a discount of up to 100% on the industry and commerce tax, depending on the number of employees hired. This benefit may be granted for a period of up to 10 years. (Buga, Tuluá, Cartago, Yumbo)

DISCOUNT ON THE SIGNAGE AND BILLBOARD TAX

Certain municipalities offer a discount of up to 100% on this tax for a specified period, contingent upon meeting the minimum number of employees hired. This benefit may be granted for a duration of up to 10 years. (Tuluá, Cartago)

SPECIAL ECONOMIC AND SOCIAL ZONE – ZESE. INCOME TAX DISCOUNT

If a company establishes operations in Buenaventura, it will benefit from a full income tax exemption during the first five years. From the sixth to the tenth year, a 50% discount on income tax will apply.

REDUCTION IN PROPERTY TAX

In Buga, companies may receive a discount of up to 80% on property tax, depending on the number of employees hired. A full 100% discount is available if at least 20% of the workforce belongs to minority groups.

Incentives for Investments in Non-Conventional Energy Sources (FNCER)

VAT AND TARIFF EXEMPTIONS ON MACHINERY, EQUIPMENT, AND SERVICES

Exemption from VAT on CAPEX and exemption from customs duties. Applicable to machinery, equipment, materials, and supplies.

BENEFIT FOR INVESTORS IN INCOME TAX

A deduction of up to 50% in the annual income tax, applicable to a maximum of 50% of the total investment made, distributed over a period of 15 years.

ACCOUNTING INCENTIVE – ACCELERATED ASSET DEPRECIATION

The maximum annual depreciation rate is 33.33%, and this expense is deductible from income tax. This incentive applies to machinery, equipment, and civil works essential to the project.

Looking to Maximize Your Return on Investment?

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One-Stop Investment Platform

Leverage a national platform that consolidates all requirements and procedures for establishing and operating a business in Colombia.

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