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Invest in Colombia: Portfolio and Direct Investment




Investments made by non-residents in Colombia (inbound investments) and investments made by Colombian residents outside the country (outbound investments) are part of the foreign exchange market, as well as the profits or dividends from these investments.

In terms of inbound investments, there are two main investment groups

1. Portfolio Investments

These are mainly made up of securities listed in the National Registry of Securities and Issuers (Registro Nacional de Valores y Emisores, or RNVE) which may be, among others, stocks or bonds. Here, an administrator, for example a stockbroker, must be in charge of such an investment, explain the Ecovis experts.

2. Direct Investment

Unlike portfolio investments, whose character is mainly speculative, direct investment seeks to develop an activity in Colombia or to be part of an activity or company that is already being developed. In this case, the investor must comply with the guidelines established by the Central Bank.

Although the most common form of investment in Colombia is the transfer of foreign currency to the country through an intermediary on the exchange market or IMC (?Intermediario del Mercado Cambiario?, for example a bank), this is not the only way. Other types of contribution are also possible, for example merchandise or intangibles. In these scenarios, the Central Bank must also be informed that such contributions have been made, in order to settle the exchange balance and avoid sanctions, say the advisors from Ecovis.

Direct investment in Colombia entails certain tax responsibilities on the part of non-residents. If an investment is sold, the investor must file an income tax return with the National Tax and Customs Directorate (Dirección de Impuestos y Aduanas Nacionales, or DIAN) for these operations. In addition, the Central Bank must be informed of these transactions, using the required documentation. To comply with tax obligations, the foreign investor must be registered in the DIAN Single Tax Register (RUT), in addition to appointing an attorney-in-fact in Colombia.

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For further information please contact:

Giovanny Tellez, Legal Advisor, ECOVIS Colombia SAS, Bogotá, Colombia

Email: infocolombia@ecovis.co

Ecovis is a leading global consulting firm with its origins in Continental Europe. It has almost 8,500 people operating in nearly 80 countries. Its consulting focus and core competencies lie in the areas of tax consultation, accounting, auditing and legal advice.

The particular strength of Ecovis is the combination of personal advice at a local level with the general expertise of an international and interdisciplinary network of professionals. Every Ecovis office can rely on qualified specialists in the back offices as well as on the specific industrial or national know-how of all the Ecovis experts worldwide. This diversified expertise provides clients with effective support, especially in the fields of international transactions and investments ? from preparation in the client?s home country to support in the target country.

In its consulting work Ecovis concentrates mainly on mid-sized firms. Both nationally and internationally, its one-stop-shop concept ensures all-round support in legal, fiscal, managerial and administrative issues.

The name Ecovis, a combination of the terms economy and vision, expresses both its international character and its focus on the future and growth.





Posted by on 17. June 2021. Filed under Internet. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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