News Source: World FDI
Bogota is the economic, cultural and administrative center of Colombia, which in turn is the ideal gateway for the Latin American market due to its location, political stability, and economic development. A cosmopolitan city of 8 million inhabitants that has positioned itself as one of the main business centers of Latin America, Bogota offers a base that comes fully equipped for the success of your business.
Privileged geographical position
One of the main attractions of Bogota is its privileged geographical position. Located in the center of the Continent, the capital has an area of 1,775.98 km2 and offers a whole range of international connections. Its air terminal boasts the largest cargo transportation capacity in Latin America and ranks third in terms of passengers.
A Large Market with Broad Access to International Markets
Companies located in Bogota have direct access to the US$330 billion Colombian market - one of the largest, most dynamic markets in Latin America. Colombia is the third most populous country in Latin America, home to nearly 50 million potential consumers.
Bogota-Region represents a market of over 11 million people, equivalent to 22% of the nation’s population (which was 49.8 million in 2018). Its strong and diversified economy explains why it makes sense to invest in Bogota.
Colombia's economic situation is reflected in its capital’s positive indicators. Bogota has a favorable climate for business - Fitch Ratings’ stable AAA credit rating and its 30.6% contribution to the country’s industrial GDP support the decision to invest.
In 2018, the metropolitan region's GDP accounted for 30.77% of Colombia’s total, namely USD 101.6 billion. In the same year, Bogota’s per capita GDP rose to USD 9,247, significantly higher than the USD 6,625 per capita GDP figure for the country as a whole.
Bogota-Region represents 32% of the country's corporations, 57% of its financial transactions and is home to a highly qualified talent pool. As proof of this, the number of multinationals that have decided to start operations in Bogota has increased steadily and by 2018 a total of 1,504 of these companies were located in the city.
The strength of Bogota’s economy is evident in its dynamism. During part of the last decade, the city’s economic growth outpaced Latin America’s. In fact, in 2018 the Colombian capital’s economy grew by 3% and the unemployment rate stood at 10.5%.
The city’s solid economic performance is reflected in the outstanding stability of its prices. Bogota has one of the lowest inflation rates among the most important cities in Latin America. In 2018 it was 3.06%, considerably lower than cities such as Buenos Aires, Mexico City and Sao Paulo.
Workforce in Bogota
A young, skilled, 4.6 million strong workforce in Bogota ensures the scalability of any operation. The city’s 128 institutions of higher education enroll over 165 thousand students and graduate over 158 thousand professionals and technicians per year. In addition, Colombia has one of the most flexible labor regimes in Latin America.
Bogota-Region offers a very competitive production cost structure. For example, the city has one of the most favorable salary levels among the major Latin American cities. In 2017 it held a 49% share of all of Colombia’s medium and large businesses and in 2018 it had a 44.46% share of the country’s international trade. In 2018, the metropolitan region exported USD 4.58 billion (FOB) and imported USD 29.33 billion (CIF).
Bogota is a business-friendly city that offers investors one of the best entrepreneurial environments in Latin America. According to the latest World Bank analysis, Bogota is the easiest city in Latin America to conduct business.
Proof of this is that over the last 8 years Bogota has been the Latin American city that has implemented most reforms aimed at making its business environment more efficient.
Flows of foreign direct investment (FDI) to Colombia have performed remarkably well throughout the last decade. The historical peak in 2013, when FDI broke the barrier of USD 16 billion, is proof of this.
Priority Investment Sectors
Bogotá is the ideal place for the development of all types of businesses. Find detailed information about the most important sectors that are promoted in Bogota, statistical figures, testimonials, success stories and much more.
Attractive Incentives in Bogota
As part of reforms to make business conditions more attractive, Colombia and Bogota offer attractive incentives for investment, including:
Special Regime for companies in the Creative Industries (Orange Economy) sector
Large-Scale Investment Regime
Free Trade Zones (FTZs):
Companies that locate in FTZs have the following benefits:
Single Company FTZs
Subject to specific investment and employment targets, investors can set up FTZs on their premises, anywhere in the country.
Income Tax Deductions
The Colombian tax code has several additional deductions from corporate income tax, including:
Local Tax Exemptions
Goods and services produced in Bogota for export are exempt from the Value Added Tax (19%) and local Industry and Commerce Tax (1.14% of gross revenues). Surrounding municipalities offer this tax exemption solely on the basis of job creation and/or investment.
Quality of life in Bogota
Why are so many companies relocating to Bogota from other cities in Colombia, neighboring countries and Central America? Because it’s a great place to live.
Contact Invest in Bogota to receive all the information and advice you need to invest in Bogota and Colombia.
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