Table of Contents
Over time, Colombia has excellent advantages for foreigners to consider investing in and doing business in. Its strategic location allows the entry and exit of merchandise in the two oceans (Atlantic and Pacific), and its economic stability, affordable workforce, and tangible and intangible resources make it a desirable investment destination.
Additionally, other positive aspects are the easy procedures for starting a business and the time and 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 and doing business in Colombia, as they know that it is a country full of opportunities.
Now, within the different investment initiatives, expatgroup.co considers the seven best businesses to invest in Colombia currently.
Food and Beverage Industry
The food and beverage sector has demonstrated its relevance by increasing its participation in the national GDP, which now represents close to 3%.
According to Colombian authorities, this industry’s importance is reflected not only in its growing participation in the country’s GDP but also in the nearly 650,000 jobs it generates.
This implies a great investment opportunity in the diverse business models found in this industry, such as cafés, restaurants, and franchises. These differ from each other in the capital required and the commercial strategies required for their success, making this an accessible market for many potential entrepreneurs.
Real Estate
This market remains a favorite for investors. This destination has proven to be profitable for many, with real estate valuations ranging 4% per year.
Likewise, real estate purchases have increased between 10% and 11% in the last few years. This market, in spite of demanding qualified knowledge, is attractive for those who want to dedicate their money to the purchase of real estate with diverse destinations in the country.
Expatgroup advises following the current models left by the pandemic and investing in spaces that facilitate remote work with options such as coworking, loft-type spaces, and eco-sustainable properties, which 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.
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Tourism
Many business opportunities are currently emerging in the country’s tourism sector. With an approximate 29% increase in the number of visitors arriving in the country in 2023 compared to 2022, the tourism industry is configured as an attractive option for investors.
Promoting tourism activities in the country involves several fronts, such as regulations that seek to boost visitors’ arrivals at the country’s tourist destinations and the increase of air routes to domestic destinations.
Entertainment
The entertainment industry in Colombia continues to grow and is increasingly positioned as a key sector for the country. Its contribution to the economic growth rate in 2023 has ranged between 9.8% and 14.9%.
Increasing large-scale events of all types and for all tastes are being held in different locations throughout the country.
“According to Dane figures, in the second quarter of 2023, the entertainment line had a weight of 166.7% in the variation of GDP, by contributing 0.5 percentage points within the total growth, which stood at 0.3%.”
This sector, in turn, is responsible for promoting other economic fronts such as tourism, food and beverages, and consumption by attracting hundreds or thousands of people to the country to attend massive events and festivals.
Creative industries
The creative industries have been slow to reactivate but 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 in the orange economy areas (cultural, creative, and technology-based activities) will be eligible for income exemption. This benefit means 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
Although mining has remained one of the country’s most profitable activities over the years, the various actors in this sector face uncertainty for the coming year.
The decrease in this sector’s percentage contribution from 9.20% to 6.19% in the last quarter of 2023, added to relevant announcements such as the implementation of new policies limiting hydrocarbon mining activity and international falls in the price of coal, augurs a decrease in this sector’s collection for the year 2024.
Technology
It is one of the sectors with the highest growth projections due to the AI revolution and the growing number of technological solutions required nationally and globally.
In 2022, its collection was close to 46.7 trillion pesos, an increase of 16.3% compared to the previous year.
Policies such as «the valley of software» applied in Medellín demonstrate the institutional interest and efforts to encourage this sector.
Among the investment opportunities in the technology sector in Colombia are:
To sum up
Colombia continues to grow. It offers foreigners a destination for rest or adventure and attractive investment opportunities in various sectors.
Our country has different business ecosystems, attractive tax incentives, and continuous economic development. In addition, qualified companies can accompany expats in creating companies or advise them on investing in Colombia. This makes us wonder less why Colombia is a great investment and business destination.
Book an appointment with our specialists, and don’t miss the opportunity to make a successful investment in Colombia.
