Why Bogotá

Because of its location, workforce, market access, costs, business climate, operating environment, quality of life, and many more reasons, Bogota is the best place for your business.

Market Access from Colombia and Bogota

A Large Market with Broad Access to International Markets

Companies located in Bogota have direct access to the US$282 billion Colombian market - one of the largest and most dynamic markets in Latin America.

Colombia: A Large and Dynamic Emerging Market

Colombia is the third most populous country in Latin America, home to more than 48 million potential consumers.
Colombia is the fourth largest market in Latin America after Brazil, Mexico, and Argentina.
In the past decade, Colombia’s market has been growing faster than the rest of Latin America

Bogota: An Attractive Market

Bogota has a population of 8 million people and a GDP of US$73 billion, larger than many countries in Latin America.
In the past decade, Bogota’s GDP growth has outpaced Colombia and Latin America.

Access to International Markets

Thanks to the different Free Trade Agreements (FTAs) in operation, companies based in Bogota have access to an extended market of US$43 trillion and 1,570 million inhabitants.

A Strategic Location with Excellent Air Connectivity

Bogota is strategically located in the center of the Americas —five hours by plane from New York, Mexico City, and Sao Paulo — and has excellent air connectivity, with several dailies non-stop flights to all major cities in the Americas.

Thanks to its location and air connections, many companies have chosen Bogota for their regional headquarters, shared service centers, and logistics hubs to serve Latin America.

Workforce

A Scalable, Skilled Work Force

A young, skilled, 4.6 million strong workforce in Bogota ensures the scalability of any operation. The city’s 109 institutions of higher education enroll over 759,000 students and graduate over 141 thousand professionals and technicians per year. In addition, Colombia has one of the most flexible labor regimes in Latin America.

A Flexible Work Regime

According to the Global Competitiveness Report 2017 - 2018’s World Economic Forum report, Colombia’s Labor Market is one of the most efficient in Latin America.

Business Climate

Bogota is one of the most competitive cities in Latin America, with an excellent business climate.

Bogota is ranked as one of Latin America’s leading business centers – along with Miami, Santiago, Mexico City and Sao Paulo. According to the latest annual América Economía ranking in 2016, Bogota is the fifth best city to do business in Latin America.

Significant Foreign Direct Investment

In the past 10 years, Bogota has received US$18,369 million in foreign direct investment, mainly in financial services (14%) and communication sectors (14%).

Between 2006 and 2016 United States, Spain, France, UK, and Chile were the principal source markets of the foreign direct investment in Bogota.

As one of the major business cities in Latin America, Bogota has great opportunities to invest. Today, there are more than 1,500 Multinational Corporations (MNCs) in the city.

Operating Environment

Bogota has a high-quality, worry-free operating environment. There is a plentiful supply of quality, cost-competitive office, warehousing and manufacturing space. The city has redundant telecom connectivity and excellent utilities. The city is a major land and air cargo transportation center and a natural logistics hub for Colombia. Finally, Bogota has all the corporate services needed by investors.

Plentiful, High-Quality Space

At present, Bogota has a supply of approximately 1’800,000 square meters (19.3 million square feet) of office space, including top quality high-end offices. There are more than 50 industrial parks, including several new free trade zones with excellent warehousing and manufacturing spaces.

Telecommunications

According to the World Competitiveness Yearbook, Colombia is one of the top ten countries in the world with the highest levels of investment in telecommunications, as a percentage of GDP, and the top country in Latin America. As a result of market liberalization and significant private sector investment, Bogota boasts a redundant, high-quality telecommunications infrastructure. Currently, more than half-a-dozen private providers offer complete corporate telecommunication solutions.

Utilities

Electric utility coverage is nearly 100% in Bogota. CODENSA, Bogota’s electric utility, is part of the ENEL Group of Italy and is recognized for high-quality and cost-competitive service. Gas Natural, a privately-owned utility, provides natural gas. The city-owned Acueducto de Bogota manages water and sewerage, which has 99% coverage for water and 98% for sewerage.

Transportation

Bogota is a natural hub for land-based freight in Colombia. Many companies have located logistics and distribution facilities in Bogota to serve Colombia. The government is currently developing four-lane highways from Bogota to both Atlantic and Pacific seaports.

Wide Range of Corporate Services

Bogota offers a wide range of corporate service providers, from international, legal, accounting, tax and consulting services, to sophisticated financial intermediaries and specialized suppliers.

Quality of Life

Climate

Bogota has an ideal climate; average temperature is 19ºC (66 ºF). At night, temperature falls to 10ºC (50 ºF). If it weren’t for the occasional rain, it would be perfect!

Green Spaces

The city has more than 5,000 public parks, including the Simon Bolivar Park measuring 113 acres.

Culture

Bogota is home to the world-renowned Gold Museum. But that is just one of some 77 museums on offer, which regularly showcase international exhibits such as Goya, Andy Warhol, and the Xian Terracotta Warriors. The city has 70 theaters and over 120 museums, galleries, unconventional spaces and art institutions; additionally, 80 libraries of the Network of Public Libraries.

Major Events

Bogota hosts several major cultural events, including the Ibero-American Theater Festival, one of the largest independent theater festivals in the world. In 2016, the festival welcomed 90 Colombian and 44 international troupes and over two million spectators.

Bike Paths (Exclusive Bicycle Pathways)

Alberto Sierra, 2012

Bogota has 392 kilometers (243.5 miles) of bike paths, the most extensive network in Latin America.

Attractive Incentives

As part of reforms to make business conditions more attractive, Colombia and Bogota offer attractive incentives for investment, including:

Free Trade Zones (FTZs)

Companies that locate in FTZs have the following benefits:

One Income tax rate of 20%.
No customs duties (VAT and tariff) are caused or paid on goods that are introduced to the Free Trade Zone.
Export from the Free Trade Zone to third countries.
Goods of foreign origin introduced into the free trade zone may remain in them indefinitely.
VAT exemption for raw materials, parts, inputs and finished goods sold from the national customs territory to industrial users of goods or services in Zona Franca or between these.

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:

Discount of 25% of the investment in environmental projects (management and improvement) over the income tax.
Up to 100% deduction on R&D and innovation projects over the income tax Discount of 25% of the investment on R&D or innovation over the income tax.
Up to 100% deduction on value paid for VAT in the acquisition of capital assets with global tariff charge over the income tax.
Up to 200% Deduction of disabled employees’ salaries over the income tax.
Income tax exemption for companies that carry out construction and financing of social housing (VIS).
Special rate of 9% rent Income Tax tariff in construction and repair of hotels in municipalities of less than 200, 000 inhabitants for 20 years.
Publishing companies exempt from income tax, in addition to sales excluded from the VAT on the scientific or cultural material.
Exemption of income tax for companies that provide the river transport services until 2032.
Micro and small enterprises created in the Zones Most Affected by the Conflict (ZOMAC) will be exempt from income tax until 2021. Medium and large enterprises will be exempted from 50% until 2021.
Additional investments in hydrocarbons and mining will be Revenues Not Deemed Income for Tax Purposes neither occasional gain
Exemption of income in the use of forest plantations until 2037.
Renewable energy sales may be tax exempt until 2032, or otherwise deduction of 150% of the investment on income tax.

Local Tax Exemptions

Goods and services produced in Bogota for export are exempt from the local Industry and Commerce Tax (1.14% of gross sales) and aggregated value tax (19% of gross sales). Surrounding municipalities offer this tax exemption solely on the basis of job creation and/or investment.

Focus industries

Bogotá is a major center for Life Sciences, Energy & Environment, Information Technology, Construction and Creative, Marketing & Media.

Learn about our Focus industries.