Colombia is playing an important role in the internationalization of Spanish companies. Colombia is an ideal platform for companies interested on expanding because it has existing free trade agreements with most countries in the region and with the United States. The country has also signed a free trade agreement with the European Union, which is expected to be fully ratified during 2013.
Currently there are over 300 Spanish companies operating in Colombia. A big wave of Spanish investment in the country started in the 90’s. The first companies to invest during this period were utilities companies such as Aguas de Barcelona, the Canal de Isabel II or ENDESA, later followed by telecommunications companies such as Telefónica and banks like BBVA. Today, most of the companies that invest in Colombia are PyMES and they are from a wide variety of industries.
Foreign investment in Colombia last year was 3.5 times more than in 2011 and Spanish investment accounts for 17 percent of that growth. According to Spanish investors, some of the best advantages that investing in Colombia offers are tax deductions in certain sectors, legal stability contracts that ensure the maintenance of the current legal framework and free trade zones. Moreover, Spain is one of the few
countries with an Agreement for the Promotion and Reciprocal Protection of Investments (BIT) and a Convention for the Avoidance of Double Taxation in force in the country.
Three years ago, Colombia was named as the Latin American country with the best business environment by the Doing Business report issued by the World Bank. Colombia is a country has a positive economic, political and social standpoint for years to come making it into one of the most attractive economies for investment across the continent.
Contact LOIGICA today to learn more about exporting your services or products to Colombia and to other South American countries.
Endnote: Information regarding dates and figures was obtained from Spain’s Ministerio de Economia y Competitividad’s website and can be found at www.oficinascomerciales.es