Over time the country has excellent advantages for foreigners to consider investing in Colombia and doing business. Its strategic location allows the entry and exit of merchandise in the two oceans (Atlantic and Pacific), and its economic stability, workforce affordable, and tangible and intangible resources.
Additionally, other positive aspects are the easy procedures to start a business, the time, and the cost, not counting the favorable exchange rate for foreign investors.
For this reason, business experts “put their eyes on it” when it comes to investing in Colombia and doing business because they know that it is a country full of opportunities.
Now, within the different investment initiatives, expatgroup considers the five best businesses to invest in Colombia in 2022
Food and Beverage Industry
The positive results generated by the food and beverage industry make this sector one of the most dynamic for doing business and investing in Colombia. The beverage industry in Colombia has a long history and has established itself as an essential sector that generates employment and taxes. According to ANDI, it contributes 0.8% to the national GDP and 7% to manufacturing.
Thus, investment options can be analyzed from small businesses such as cafes, typical food restaurants, fast food businesses, bakeries, and pastry shops; This type of business requires a minimum investment % and a quick return on investment.
Furthermore, it is also possible to invest in franchises whose commercial strategy is already indexed in the market and can ensure the arrival of fixed customers; This type of business requires a higher investment %, but with a fixed, fast, reliable degree of return.
Real Estate
Variations in the dollar exchange rate are favorable for foreigners interested in investing in Colombia through Real Estate. Although a high degree of investment is required, it is even more profitable today because you can buy a home with a price up to 30% lower than what was obtained a few years ago.
According to BBVA Research, real estate investment is expected to grow by 10.6% in the real estate market in Colombia by 2022, and this growth would be driven predominantly by the excellent behavior of low and medium-value housing, obtaining extraordinary profits in the medium and long term.
Expatgroup advises following the current models left by the pandemic, investing in spaces that facilitate remote work with options such as coworking, loft-type spaces, and eco-sustainable properties are some of the alternatives.
At expatgroup, we are experts in this type of investment, we have helped hundreds of foreigners not only helping them to invest calmly and intelligently in the country, but also, advising them in the creation of a company, guiding them to make the best investments according to their needs and expectations, and finally, facilitating the process to obtain the Colombia Investment Visa to enjoy a legal stay in Colombia.
Creative industries
The creative industries have been slow to reactivate, but they are recovering well and will grow more with investment promotion. Within the orange economy policy framework that involves investments from the cultural sector and Ministerio TIC, el Ministerio de Comercio, Industria y Turismo, and Bancóldex, the country has managed to mobilize $22 billion in the last two years.
Additionally, through the Social Investment Law, companies that are part of the orange economy areas (cultural, creative, and technology-based activities) will access the benefit of income exemption. This benefit means that entrepreneurs who promote creativity and generate employment for the country do not pay income tax for seven years.
The Creative and Content Industries contribute 3.3% to the National GDP and 5.8% contribution to the country’s economic development, so investing in this type of industry, such as film, publishing, photography, computer programs, architecture, and others, brings excellent tax benefits that translate into more significant and better profitability.
Mining
Our country is an essential source for developing this type of investment thanks to the potential of our mineral reserves since Colombia is the first producer of coal, the second in nickel, sixth in copper and gold, and is the double world exporter of emeralds.
In 2021, Colombia achieved a record gold production reaching 2.5 million an ounce, representing an increase of 66.6% compared to the 1.15 million ounces produced in 2020, a production that was not seen in the country for ten years.
Therefore, it is not surprising that, in the annual survey of mining companies of the Fraser Institute, Colombia has been located in the 29th place in the world ranking of attractive countries for mining investments.
Technology
According to the Doing business in Colombia 2021 report, the country’s software and IT services industry was a great investment attraction, obtaining an average growth of 3% between 2015 and 2019, reaching 229.1 million dollars, consolidating the country as a platform to reach different markets.
Among the investment opportunities in the technology sector in Colombia are:
- Fintech
- Blockchain
- Ecommerce
- Development of mobile applications, software, and digital content
- Creation of software factories
- Maintenance of software applications
To sum up
Colombia is a country that continues to grow. It not only offers foreigners a destination for rest or adventure, but our country also has an attractive offer in various sectors for investment.
Our country has different business ecosystems, the attractiveness of tax incentives, and continuous economic development. In addition, qualified companies can accompany expats to create companies or advise on investing in Colombia. This makes us wonder less why Colombia is a great destination to invest and do business.
Book an appointment with our specialists, and don’t miss the opportunity to make a successful investment in Colombia.
