There are currently 120 free trade zones in Colombia (78 are Special Permanent Free Trade Zones and 42 are Permanent), which have generated cumulative investments of 46 trillion pesos and generate 152,000 jobs in 22 departments of the country.
Free trade zones in Colombia have contributed to the generation of employment and foreign investment, in our country there are more than 122, being one of the nations with the largest number in South America. It is a reality that many people and businessmen do not know what Free Trade Zones are. what Free Trade Zones are and how many free zones there are in Colombia, that is why today we tell you about them and how they are distributed.
Over the years, Colombia has recognized the great importance of free trade zones for economic growth, so it has not limited itself and has established a large number of these areas in the national territory. Now, we will show you how many and which are the free zones that currently exist throughout the national territory.
How many free zones are there in Colombia according to each department?
Our country has +122 of the 660 free trade zones in Latin America, which are distributed in Colombia as follows:
- Antioquia: 3 permanent and 7 special permanents
- Atlantic: 3 permanent and 6 special permanent
- Bolívar: 5 permanent and 12 special permanent
- Boyacá: 1 permanent free zone
- Cauca: 2 permanent and 3 special permanent
- Cesar: 1 special permanent free zone
- Córdoba: 3 special permanents
- Cundinamarca: 8 permanent and 14 special permanent
- Coffee-growing region: 2 permanent and 3 special permanent
- La Guajira: 2 free trade zones
- Huila: 1 permanent free zone
- Magdalena: 3 permanent and 3 special permanent
- Goal: 2 special permanents
- Nariño: 2 special permanent
- Norte de Santander: 1 permanent and 2 special permanents
- Santander: 1 permanent and 5 special permanent
- Tolima: 1 special permanent free zone
- Valle del Cauca: 5 permanent and 7 special permanent
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Types of free zones in Colombia
Free trade zones are areas that allow companies to reduce costs and increase efficiency in the supply chain, as well as to access new markets. In Colombia, there are different types of free trade zones, such as the Permanent Free Trade Zone, the Temporary Free Trade Zone and the Special Permanent Free Trade Zone or Uniempresarial, which offer tax and customs benefits to the companies established in them. In addition, services such as warehouses, yards, offices and data centers, among others, are available.
There are currently three main categories of free zones in free zones in ColombiaHere we tell you in detail so that you are well informed about them:
The Permanent or Multi-company Free Trade Zone
It refers to a delimited area located within Colombia that has different tax and customs benefits. Within this zone, different types of commercial and industrial companies are installed; when they reside there, they enjoy a special foreign trade treatment, according to each case.
It is a zone created by the State for the development of industrial, commercial and service activities, located within the national territory. This zone must have at least 20 hectares of necessary infrastructure and is established by authorization of the Ministry of Commerce, Industry and Tourism.
Our Western Free Trade Zone falls into this category, with more than 60 companies from different sectors.
Infrastructure characteristics and requirements
The Permanent Free Trade Zone requires a series of infrastructures, including an access road, warehouses, loading and unloading areas, offices, areas for public services, and green areas. In addition, it must have the legal permits for its implementation and must comply with certain requirements established by the regulations.
Tax and customs benefits
Companies established in the Permanent Free Trade Zone enjoy several tax and customs benefits such as exemption from import taxes and tariffs for raw materials and capital goods, reduced income tax rate, among others. In addition, it allows them to have flexibility in production by having access to the necessary services, materials and labor.
Services available
In addition to tax and customs benefits, companies established in the Permanent Free Trade Zone can enjoy a variety of services and amenities. These include warehouses, yards, offices, data centers, among others. Likewise, educational institutions, banks, restaurants, hotels, and health and wellness services can be found.
The Special Permanent Free Trade Zone
In the case of the special permanent free zone, this is defined as the delimited area in Colombia in which a single industrial company is installed. This company becomes, as in the previous case, a special beneficiary of different customs, tax and foreign trade advantages.
Advantages and characteristics
The Special Permanent Free Trade Zone or Uniempresarial is characterized by allowing the company greater autonomy when making decisions and developing its activities. In addition, it allows greater efficiency in the supply chain and greater flexibility in production.
Requirements and benefits
The Special Permanent Free Trade Zone or Uniempresarial requires the fulfillment of certain requirements such as the presentation of a clear economic project, as well as having a high impact on the economy and society of the country. Among the fiscal and customs benefits are exemption from import taxes and tariffs for goods necessary for the development of economic activities, reduced income tax rate and access to a special customs regime.
The Transitory Free Trade Zone
It is a delimited area in Colombia that is used for particular events of national and international character considered relevant for the economy or foreign trade of the country. Among the activities that can be developed are: congresses, exhibitions, fairs, seminars, among others. However, these are events that take place at a specific time and are not sustained over time.
Among the activities that can be carried out in the three categories of Free Trade Zones in Colombia, we highlight manufacturing in different sectors, warehousing, transformation and logistics services.
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Finally, we can confirm that the free trade zones installed in the Colombian territory are a tool of vital importance to facilitate the transport of goods of all kinds to various local and foreign markets, reducing the tax burden for companies located in these areas and promoting foreign trade in Colombia, providing opportunities for economic growth that significantly benefits not only entrepreneurs, but the Colombian workforce. Learn more now Western Free Trade Zone!
There is still a great lack of knowledge about free trade zones in the country and in the world, that is why it is important to clarify some myths and realities that have been woven around them.
Myths of Free Trade Zones
Myth #1: Free trade zones only benefit large companies
A common myth that many people have about free trade zones in Colombia is that there is no room for medium-sized companies. While it is true that large organizations take full advantage of the tax and customs benefits they offer, this does not mean that small and medium-sized companies cannot do the same. In fact, free zones can be especially useful for growing companies looking to expand internationally.
Myth #2: Free trade zones are only for the importation of products.
It is said that free trade zones in Colombia are only used for the importation of products. Although they are useful for the import of raw materials and finished goods, they are also used for the production and export of goods and services. It is worth noting that many brands use free trade zones as production centers to reduce production costs and increase their competitiveness in international markets.
Myth #3: Free trade zones are for tax evasion
This is an idea that has been demystified over time. Although it is true that companies can obtain certain tax benefits by operating in a free zone in Colombia, these areas are not used to evade taxes. It is no less important to highlight that the number of companies operating in a free zone must comply with the tax laws and regulations of their country of origin, as well as with the regulations of the country where the free zone is located.
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Myth #4: Free trade zones do not comply with workers' schedules.
Many say that companies operating in a free trade zone do not comply with their workers' schedules. It is important to remember that all companies must comply with labor laws and workers' rights, regardless of whether they operate in a free trade zone or not.
Myth #5: Free trade zones are a magic solution to all business problems.
Although free trade zones in Colombia can offer numerous benefits for companies, they are not a magic bullet. Companies operating in a free zone still face the same challenges as any other business in terms of market volatilities, such as global competition and the need to innovate and adapt to changing consumer conditions.
Free trade zones are areas designated for the conduct of commercial and production activities, with certain tax and customs benefits that make them attractive to companies wishing to expand their international operations. Although these areas can offer numerous advantages for companies, it is important to be clear to avoid misunderstandings or misinterpretations of how they really work.
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Tax and customs benefits in free zones
Companies that establish themselves in Free Trade Zones in Colombia can enjoy a variety of tax and customs benefits that allow them to maximize efficiency and improve profitability.
Exemption from import taxes and duties
Companies established in Free Trade Zones can import raw materials and capital goods free of duties and taxes. This allows them to reduce production costs and improve their competitiveness in the market.
Reduced income tax rate
Possibility of employing foreign labor
Companies established in Free Trade Zones can hire qualified foreign workers to meet specific business needs. This allows them to have access to a specialized labor force and improve their capacity to produce high quality products and services.
Access to a special customs regime
Companies established in Free Trade Zones have a special customs regime that allows them to facilitate international trade. This reduces waiting times and improves efficiency in the supply chain, which can also improve profitability.
Possibility of exporting products without paying taxes
Companies established in Free Trade Zones can export their products or services without having to pay taxes. This allows them to access a wider international market and improve their income generating capacity through the export of their products and services.
