Foreign Investment And Exchange Controls In Colombia

Foreign Investment Rules

Colombia, along with Bolivia, Ecuador, Peru, and Venezuela, is a member of the Andean Pact. The main principles and rules established by decisions issued while the pact was being developed were incorporated into Colombia's Foreign Investment Statute and its complementary regulations.

Foreign investments in Colombia are divided into direct investments and portfolio investments.

Direct investments occur when foreign individuals or companies invest directly in a business entity constituted in Colombia or when foreign individuals or companies acquire participations, shares, or social quotas with the intent of permanency. A direct investment in a company may also be executed for the development of collaboration, concession, service, management, license, or technology transfer agreements. This investment strategy is allowable, provided that the investment does not involve the acquisition of shares and that income received by the foreign investor