Discover The Benefits Of Investing In Colombia

6 min read

Discover The Benefits Of Investing In Colombia

Colombia is a country well-loved by expats. Its affordable living costs, stable weather, and lifestyle options draw in expats from all walks of life, from adventure-seeking digital nomads to retirees searching for a laid-back place to settle.

This lifestyle appeal also attracts investors to this country. As an emerging market, Colombia has tremendous potential for those who wish to cash in handsomely, including real estate options ranging from beachside apartments to vast agricultural land.

In this article, we’ll examine why this country is a savvy investor’s choice, discussing various aspects such as safety, political stability, and the best investments in Colombia.

 

WHY INVESTORS ARE TURNING TO COLOMBIA

Colombia is often still associated with gangs and guerrillas in people’s minds, but the country has transformed dramatically in recent years. During the ‘80s, '90s, and early 2000s, Colombia was indeed a lawless land where cartels had enormous influence and exercised violence on residents—until everything changed in 2002.

 

ENHANCED SAFETY

President Uribe was elected that year, marking a major turning point in Colombia’s history. He implemented the “Seguridad Democrática” policy, prioritizing safety above all else. The policy's main objective was to create a secure environment that guaranteed fundamental rights like freedom of speech, movement, and the right to live. In 2002, the crime rate was a whopping 70.17 per 100,000 residents, but it dropped massively in the intervening years. These days, it sits at roughly 26 per 100,000 people

This policy helped boost the economy and increase foreign investment in Colombia. Multiple cities in Colombia now are expat-friendly, with lifestyle options ranging from the eternal spring of Medellín to the year-round warm weather of Cartagena and everything in between. 

 

KEY SECTORS GROWING IN COLOMBIA

Colombia is blessed with a strategic location, stable weather year-round, and vast natural resources like petroleum, gold, bananas, and coffee. The country's varied climate zones also allow for the production of tropical and subtropical crops, such as potatoes and wheat. All these factors make investing in Colombian agriculture an excellent choice with tremendous upside. 

Other sectors, such as real estate and tourism, hold immense potential. Although demand may fluctuate depending on the time of year, stable weather conditions allow for near-constant tourism. Both long and short-term rentals yield excellent returns as there’s demand for all kinds of accommodations, from beachfront properties in Barranquilla to more laid-back rural houses in mountainous regions near Bogotá.

 

Cartagena, Colombia: A gem of history, culture, and investment potential! With booming tourism, tax incentives, and a thriving real estate market, this coastal city offers luxury, charm, and lucrative opportunities for savvy investors

Cartagena, Colombia: A gem of history, culture, and investment potential! With booming tourism, tax incentives, and a thriving real estate market, this coastal city offers luxury, charm, and lucrative opportunities for savvy investors

ECONOMIC GROWTH & KEY INVESTMENT SECTORS IN COLOMBIA

Colombia has undergone a remarkable transformation in terms of security, making it an attractive destination for expats, investors, and tourists alike. This transformation in safety has been the pillar of its economic growth and diversification, making it a country that savvy investors should monitor. 

Improved security has allowed Colombia to tap into its economic potential, paving the way for technology, tourism, and agriculture growth. For instance, Medellín has gone from being a dangerous city to earning the nickname “the Silicon Valley of Latin America.”

 

BUSINESS-FRIENDLY ENVIRONMENT AND TAX TREATIES

To understand the country’s spectacular economic growth, we cannot neglect its tax incentives. For instance, tourism, agriculture, technology, and renewable energy offer tax breaks for investors. 

Colombia's thriving economy and business-friendly environment have made foreign investment in Colombia increasingly attractive. The government offers tax incentives and has established special economic zones to encourage investment in key sectors such as tourism and technology. Additionally, there are double taxation treaties with several countries and trade agreements with the U.S. and the EU, further facilitating foreign direct investment in Colombia.

 

REAL ESTATE

Colombia’s property market is experiencing tremendous growth due to factors such as the country’s economic stability, affordable prices, and increasing demand for both long and short-term rentals. Real estate investing in Colombia can be highly profitable. 

For instance, Bogotá and Medellín, where most economic activity is concentrated, might be great options for capitalizing on long-term rentals. On the other hand, cities like Santa Marta, Barranquilla, and Cartagena, which are more focused on tourism, yield consistent short-term rental income. 

 

TOURISM 

Tourism has flourished, attracting visitors to Colombia’s breathtaking landscapes, vibrant culture, and historical landmarks. The country's incredible biodiversity, multiple climates, and warm, welcoming locals make it a place people love to visit, often more than once. 

Coastal cities like Cartagena and Santa Marta see growing tourism activity, which has excellent potential for boutique hotels as travellers increasingly seek luxurious, personalized experiences. Once rife with safety concerns, rural areas are now thriving eco-tourism hotspots for adventure and travel. The many national parks and stunning natural beauty make eco-tourism a lucrative opportunity.

 

AGRICULTURE

Who said that money can’t grow on trees? Colombia’s agriculture sector has also benefitted from improved safety. The country’s unique geography and climate allow for the steady production of crops such as coffee, bananas, avocados, and flowers, driving exports and job creation. 

Investing in agriculture is a great way to lock in long-term income, whether renting land out to farmers or selling the crops you harvest. As an agricultural powerhouse, coffee and cacao predominate, but options like wheat, soybeans, maize, and rice are also abundant. The demand for food will always exist, so you’re likely to cash in handsomely if you own agricultural land!

 

TECHNOLOGY AND INNOVATION

Colombia is incentivizing investment in technology and innovation to strengthen and modernize its economy. The city of Medellín is pursuing the “Medellín Software Valley” strategy to become the IT hub of Latin America. 

This project has helped the local economy grow. The software and IT services sector represents 6% of the total foreign investment in Medellín and generates over 10,800 jobs. The government has also enacted laws like Law 2286 of 2023, which offers tax breaks to technology-based companies that establish themselves in Medellín.

 

 

HOW INVESTMENT LEADS TO RESIDENCY AND CITIZENSHIP

Some investments will also help you qualify for residency. In other words, you can achieve two fantastic results: invest in cash-producing assets like a business or real estate—and get residency by investing in Colombia. Here are the two Colombian investment visas:

 

INVESTMENT VISA PATHWAYS

  • Inversionist M Visa: This residency option requires you to invest in Colombia by purchasing a property worth at least 350 times the local minimum wage (1,423,500 COP as of January 2025, roughly $323 USD). Therefore, the property you buy must be valued at approximately $116,667 USD or more. With this permit, you can live in the country for 3 years.

  • Resident R Visa: This residency option requires you to invest more substantially in Colombia. You must allocate 650 times the minimum wage for a property value of approximately $215,431 USD. In principle, the "R" type visa will be valid indefinitely.

 

STEPS TOWARD CITIZENSHIP

After securing residency, the time required to become a naturalized Colombian citizen depends on your nationality. Latin American and Caribbean citizens will take just one year, while Spanish citizens need two. Most other nationalities require five years, but this can decrease to two if you have a Colombian spouse or children.

In addition to meeting the residency requirements, you’ll need to provide documents such as a criminal record and proof of financial stability, as mentioned in a previous article. You may also need to pass a Spanish test and an exam covering Colombian history, geography, and the national constitution.

 

BENEFITS OF COLOMBIAN RESIDENCY

Securing Colombian residency comes with numerous advantages. It allows you to live in the country year-round, establish roots, and enjoy a stable lifestyle while benefitting from the country’s low cost of living. You can also freely live, work, and study. Moreover, it’s a pathway to citizenship, offering the chance to enjoy the full rights and benefits of living in Colombia for a lifetime.

 

BENEFITS OF COLOMBIAN CITIZENSHIP

Obtaining a Colombian passport offers significant benefits. One of these benefits is visa-free travel to approximately 84 countries and visa-on-arrival in around 50 more, providing excellent global mobility for business, leisure, and international opportunities. According to the Passport Index, a Colombian passport is ranked 29th worldwide, enabling you to study abroad, invest, and explore economic prospects in various nations—all while allowing dual citizenship!

 

City of Medellín at night, Colombia

Medellín, the 'City of Eternal Spring,' attracts digital nomads and retirees with its mild climate, modern infrastructure, affordable living, and reliable internet. A top expat destination in Colombia

BEST CITIES FOR EXPATS TO LIVE

Colombia offers a variety of cities that cater to different lifestyles and preferences, making it an attractive destination for all kinds of expats. Here are some of the best cities to consider:

 

MEDELLÍN

Known as the “City of Eternal Spring,” Medellín is a top choice for digital nomads and retirees. Its temperate climate, modern infrastructure, and thriving expat community make it exceptionally easy to settle in. The city also has excellent healthcare facilities, affordable living costs, and reliable internet, which makes it ideal for remote work.

 

BOGOTÁ 

If you seek a vibrant urban experience, Bogotá, Colombia’s capital, is the place to be. It’s a cosmopolitan city offering many business opportunities, a thriving cultural scene, and top universities. While the climate is cooler due to its altitude, Bogotá’s diverse neighbourhoods provide options for every taste.

 

CARTAGENA 

Cartagena is an excellent choice for a more laid-back, beachside lifestyle. With its historic charm, stunning Caribbean beaches, and relaxed vibe, the city offers a great gastronomic scene, year-round warm weather, and some of Colombia’s most stunning colonial architecture. 

 

CALI

Cali, Colombia's salsa capital, is a great option for expats interested in agriculture or art. The city stands out due to its lively music and dance culture while offering a warm climate and low cost of living. It’s also surrounded by farmland, making it ideal for those seeking agricultural opportunities. 


National Capitol building in Bogota center, Colombia

Colombia: A land of opportunity with financial growth, tax incentives, and diverse investments. Safe, affordable, and vibrant, it’s perfect for expats seeking stability and adventure

CONCLUSION

Colombia is one of the top countries investors should keep on their radar. It delivers on all fronts with its unique combination of financial growth opportunities, tax incentives, residency and citizenship pathways, and an incredible quality of life. You can invest in Colombia to tap into sectors as varied as real estate, agriculture, tourism, and even tech. 

Colombia is generally a safe country, and the low cost of living and diverse cities further make it a destination for expats seeking stability and adventure. To stay updated on the latest expat news and get your offshore Plan-B started, don’t forget to claim our free special report, ‘Plan-B Residencies & Instant Citizenships.’

 

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Mikkel Thorup

Written by Mikkel Thorup

Mikkel Thorup is the world’s most sought-after expat consultant. He focuses on helping high-net-worth private clients to legally mitigate tax liabilities, obtain a second residency and citizenship, and assemble a portfolio of foreign investments including international real estate, timber plantations, agricultural land and other hard-money tangible assets. Mikkel is the Founder and CEO at Expat Money®, a private consulting firm started in 2017. He hosts the popular weekly podcast, the Expat Money Show, and wrote the definitive #1-Best Selling book Expat Secrets - How To Pay Zero Taxes, Live Overseas And Make Giant Piles Of Money, and his second book: Expats Guide On Moving To Mexico.

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