The Colombian Minister of Commerce, Industry and Tourism has made a presentation to foreign investors in Madrid assuring them that the South American country can offer a new economic tool that will give a twenty-year safeguard to investments. The combination of individual company free zone and legally binding contract, signed by the government of Colombia, will ensure that the investment conditions will be respected over the 20-year term, whatever changes in government and tax regulations occur.

Minister Luis Guillermo Plata explained that the transformation of Colombia over the last few years, especially in mechanisms to allow European investment to be made more easily and with more guarantees, had led to the rapid growth of the tourism sector, with Spanish companies investing in hotels and casinos in the country.

With tourist growth of over 135% in five years, Colombia is seeking to emulate this growth in other sectors. In 2002 there were around 550,000 visitor arrivals and it is estimated that 1.3 million tourists will have entered the country in 2007. There is already a 30-year company tax break for the construction of hotels.

The individual company free zones promised by the Minister can be set up anywhere in Colombia for a minimum investment of US$16 million and direct employment generated for 500 jobs. Taxation is at 15%, compared to 33% in the rest of Colombia, and the free zones enjoy all the usual benefits such as the importation of machinery and raw materials duty free and sales tax exemption. (E-10.16.07)

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