There are several reasons to invest in Colombia; this trend has been encouraged by practically every government over the last 30 years, regardless of their political alignment or voter base, which partly explains the large influx of cash flows from abroad into the country.
Furthermore, it is important to mention that this may be the best historical moment to make these types of investments, and from our perspective as a Colombian law firm, we want to highlight 6 reasons to invest in Colombia below:
1. Regulatory stability regarding companies and corporations
It is important to mention that since 2008, Colombia has had a new and adequate corporate law for receiving foreign investment, Law 1258 of 2008, which creates the figure of the S.A.S. (Simplified Shares Company). This entity, while it cannot be listed on the stock exchange or go public, can receive any number of shareholders, protecting them under the concept of limited liability to the amount of their contribution and engaging in any valid economic activity. The vast majority of companies in Colombia are linked to this corporate type, given the great flexibility and practical utility it possesses.
2. Diversity of personnel hiring methods
In our legislation, there are various ways to hire personnel, both through labor or commercial contracts, each with its advantages and disadvantages. Fortunately, both are extensively developed and updated in accordance with international regulations.
It is important to mention that the cost of labor in this country is extremely competitive in the international trade scenario. minimum wage in Colombia in 2025 is $1,623,500 COP, $378.28 USD, or €330.08, including the value of a transportation allowance for the employee. However, there are some additional payments to be made under this hiring methodology that must be taken into account. Generally speaking, one could expect an additional 50% in extra-salary payments; in any case, we would still be at extremely competitive amounts compared to other countries. It should be noted that in a commercial methodology, there is not even a minimum remuneration amount, nor so many additional payments.
In any case, it is important that this is handled with the support of lawyers who are experts in the handling of these contracts and their additional general conditions.
3. Application of international standards in intellectual property
In this country, the guidelines established by WIPO are largely employed. This ensures that the same rules of the game established worldwide regarding the protection of the expression of ideas are basically followed here, whether through distinctive signs (trademarks), new creations (patents), or copyrights.
4. Exchange rate favorability
During the last 20 years, the value of the peso has remained constant against other international currencies. This is particularly true in the last year, where the peso has experienced a sharp depreciation due to various reasons, including the variability of oil prices, the pandemic, and other similar matters. In any case, each US dollar today costs 4,283 Colombian pesos and each euro today costs 4,919, making the possibility of accessing great financial or real market opportunities very apparent.
5. Social context
Likewise, it is worth mentioning the new context generated by the peace agreements reached with the revolutionary group known as the FARC. This agreement has allowed for significant progress in how the national government controls the entire territory of the country, lower levels of violence, among other positive outcomes achieved by the agreement.
6. Market
Finally, I must mention that the country’s market is in a very interesting stage in various fields, such as medicinal cannabis—a nascent industry that allows for great investment possibilities and promises high returns. At the same time, all value-added markets are thriving, utilizing the large number of young people the country has, for example, for the export of services, among others.
With the above, I hope to have clearly and comprehensively addressed the main reasons to invest in Colombia. I trust that in the coming years this trend will continue to consolidate and that, within this framework, business formality will come hand in hand with law firms like Cuadro Legal—experts in corporate law, capable of channeling resources into the country, creating investment vehicles, and supporting all contracting scenarios regarding personnel, clients, and suppliers.
