In the heart of Colombia, a country known for its economic dynamism and rich cultural diversity, free trade zones are located near Bogota, a key element in the development and commercial expansion strategy of the region and the country. These zones, characterized by their special customs and tax regime, represent an oasis of opportunities for local and international business, and are catalysts for economic growth and innovation in the region.
Bogota, as the capital of the country and epicenter of economic activity, offers a unique environment for free trade zones and allows organizations to open doors. Maximize your opportunities, the city has a strategic location that facilitates access to national and international markets, so free zones near Bogota generate a vibrant business ecosystem, characterized by its diversity and adaptability.
This scenario provides fertile ground for free trade zones near Bogota to prosper, since there is no doubt that they are places of high importance for investors and entrepreneurs seeking to expand their commercial horizons.
For example, different media reported: "Exports from free trade zones grew 51.8% from US$ 168.8 million in October 2022 to US$ 256.2 million in the same month of 2023. With respect to 2019, October registered a decrease of 5.7%, going from US$ 271.6 million to US$ 256.2 million in the same period of 2023".
Although the pre-pandemic figures were not achieved, they are on the way to recovery and continue to be a source of employment and dynamism for the Colombian economy.
Free trade zones near Bogota are a magnet for investment, thanks to a unique combination of advantages that include significant tax incentives, modern infrastructure, access to a highly skilled workforce and a stable and business-friendly legal framework. Maximize your opportunities by taking advantage of these factors that attract companies from diverse industries and foster an environment of innovation and technological development, crucial in today's global economy.
In this blog, from Zona Franca de Occidente we explore the multiple advantages that these free zones near Bogota offer; maximize your opportunities, highlighting how they contribute to the economic development of the Capital and its surroundings, as well as Colombia as a whole.
Maximize your opportunities by taking advantage of the impact of attracting foreign investment. In addition, you enjoy the generation of employment and the promotion of freer and more efficient trade, all added to the export capacity of the free trade zones near Bogota, which redefines the business landscape of the region, offering a model of success that combines the best of local resources with global business practices.
Maximize your opportunities with these ten positive aspects of free trade zones near Bogota.
1. Detailed tax and customs benefits
Free trade zones near Bogotá and, in general, offer a highly beneficial tax regime. Companies located here enjoy a reduced income tax rate (generally much lower than the national rate). In addition, they are exempt from VAT and import and export duties, resulting in significant operational savings.
Don't miss this opportunity. Maximize your opportunities, this is particularly advantageous for manufacturing and international trade companies, as they import raw materials and export finished products with favorable customs costs.
2. Expanded strategic location
Location is vital to provide proximity to relevant business networks, government institutions and financial services, which is essential for organizations looking to quickly integrate into the Colombian market. In that respect, you have the alternative of increasing your opportunities by setting up in a place like Zona Franca de Occidente.
For example, our facilities are located only 25 kilometers from El Dorado International Airport, 495 kilometers from the Port of Buenaventura, 1,030 kilometers from the Port of Cartagena, which allowed us to generate more than 140 thousand foreign trade operations in 2023 and export to more than 23 countries.
3. Modern infrastructure and integrated services
Free trade zones near Bogota are equipped with state-of-the-art infrastructure, including advanced warehousing facilities, state-of-the-art industrial parks, and integrated logistics services. This infrastructure facilitates operational efficiency; maximizes your business opportunities; and reduces downtime and improves the supply chain, critical for anyone looking to increase productivity.
4. Incentives for foreign investment
There are several incentives to attract foreign investors. These include facilities for repatriation of profits, legal protection for investors, and assistance in administrative procedures. In addition, companies benefit from Colombia's trade agreements with other countries, facilitating access to new markets. Maximize your opportunities with the country's strong regulations.
5. Access to skilled labor
The region of Bogota and surrounding areas is known for its skilled, educated and highly qualified population. Companies in the free trade zones have access to a wide range of talent in fields such as engineering, information technology and business management.
In addition, the presence of renowned universities and technical training centers ensures a constant flow of qualified professionals, essential for any company in search of innovation and operational excellence.
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The Economic Impact of Free Trade Zones near Bogota
6. Favorable business environment in detail
The country has significantly improved its business climate, which is particularly evident in the free trade zones near Bogotá. Government reforms have simplified the process of establishing companies and improved the protection of property rights. In addition, Colombia's political and economic stability has increased investor confidence.
Maximize your opportunities in free trade zones thanks to a regulatory framework that promotes transparency and efficiency, creating an attractive and secure business environment.
7. Growth and expansion opportunities explored
These free trade zones are ideal for those seeking to enter the Colombian market or expand into Latin America. They provide a platform from which companies have the alternative to explore market opportunities in the region, taking advantage of Colombia's free trade agreements with several countries. Operational flexibility and tax benefits allow them to reinvest their profits in growth and expansion strategies.
8. Reduction of trade barriers in depth
Free trade zones function as international trade hubs, significantly reducing trade barriers. By operating in these zones, there are benefits of more agile import and export processes, which facilitates access to international markets. This improves the global competitiveness of organizations and enables them to respond more quickly to market demands and changes.
9. Detailed security and legal protection
Security and legal protection are priorities in Colombia's free trade zones. These areas are well guarded and have robust security measures in place to protect business operations. In addition, the Colombian legal framework provides protection for foreign investment and guarantees stability and predictability for companies, a crucial aspect for long-term planning and business sustainability.
10. Sustainability and social responsibility in depth
Free trade zones near Bogotá are increasingly committed to sustainable and responsible practices. For example, Zona Franca de Occidente has a robust sustainability program.
The free trade zones have implemented policies and procedures to minimize their environmental impact, including the efficient management of resources and the adoption of clean technologies and renewable energies.
At the same time, there is a growing focus on corporate social responsibility, with companies becoming actively involved in community projects and local development programs. This commitment to sustainability enhances the image of companies and ensures a long-term operation aligned with global environmental and social values.
Free trade zones near Bogota represent a microcosm of opportunities for organizations seeking to establish and grow in a dynamic and progressive environment. Through a mix of tax benefits, strategic location, access to a skilled workforce, and a favorable business environment, these zones are positioned as centers of innovation and growth.
As Colombia continues its trajectory of economic development and openness to global trade, free trade zones near Bogota will remain key pillars in this process, providing fertile ground for domestic and international companies seeking to thrive in the 21st century economy.
Types of free zones in Colombia
At this point it is important to remember the four types of free trade zones according to Procolombia:
- Industrial free trade zones for goods and services and trade: their purpose is to promote and develop the process of industrialization, provision of services primarily for external markets and commercialization.
- Export processing zones for technological services: their purpose is to promote and develop technology-based companies (those whose products are based on scientific research and technological development, new products and processes of creation, generation and technological appropriation oriented to export and subsidiarily to the domestic market).
- Tourist industrial free trade zones: their goal is to promote the provision of tourist services, primarily for foreigners (receptive) and subsidiarily for domestic tourism. These include lodging services, travel agencies, restaurants, conference organization, transportation services, sports, artistic, cultural and recreational activities.
- Transitory free zones: international fairs, exhibitions, congresses and seminars of an international nature that are important for the economy and international trade are located here.
Do you think your company could take advantage of the great benefits of a free trade zone near Bogota? Talk to one of our advisors for a personalized consultancy and to solve any doubts you may have, it's time to evolve your business!
