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Investment in Colombia to Spike Under $11.5B Plan

Investment in Colombia to Spike Under $11.5B Plan

Investment in Colombia will rise by $11.5 billion (USD) between 2020 and 2022, under a government program that seeks to target key sectors for growth and deepen the engagement of 'mega investors' in the South American nation's market. Colombia is the fourth-largest economy in Latin America by GDP, as well as one of the primary recipients of foreign direct investment (FDI) in the region. According to the United Nations' 2020 World Investment Report, FDI inflows into Colombia increased 26 percent in 2019 compared to the previous year, rising from $11.5 billion (USD) to $14.5 billion (USD). The new "Commitment to Colombia" program seeks to keep that investment on an upward trajectory, despite disruptions caused by the COVID-19 global pandemic. Promoting investment in Colombia Colombia seeks to attract 'mega investors' The new governmental strategy is built upon two pillars: tax incentives for investors, and the optimization of corporate processes. As such, Colombia is offering generous tax incentives to foreign companies willing to relocate from other territories. Meanwhile, the country's authorities are working to simplify the process of company formation in Colombia, to streamline market entry for foreign investors.  The government’s principal goal is to attract 'mega investors,' a term that refers to companies with more than $280 million (USD) in available capital to invest. The government agency in charge of promoting foreign investment in the country -- Procolombia -- has contacted more than 500 companies to offer them the possibility of being part of this...

Tips for Investing in Chile’s Real Estate Scene

Tips for Investing in Chile’s Real Estate Scene

A post-pandemic world presents countless opportunities across perhaps unfamiliar sectors, industries, and jurisdictions. Investing in Chile’s real estate scene has been recently developed into a great idea for foreigners looking to relocate to Chile. Here are key aspects and tips for investing in Chile’s real estate scene. Why buy real estate in Chile? Whether talking about Chile or another country, investing in real estate is always a great idea. Some of the benefits of buying real estate are: It considerably strengthens your retirement funds, general estate and overall lifestyle once you reach retirement age.Under normal circumstances, real estate will always hold and increase their value over time.It entails much less risk than stock, commodities, metals and general capital market instruments.Pre-sales and/or home auctions can be taken advantage of to maximize your investment.One does not need to be an expert and counselling is cheaper compared to other types of investments. Choose to invest in Chile’s real estate scene The timing is exactly right: Recent social upheavals and a global pandemic have decreased real estate prices across the board in Chile.Real estate will usually hold and increase their value over time.Great demand translates into lower prices.The national real estate market is currently undergoing a strong reactivation.A big, experienced, and liquid market for low price investment properties.Down payments are extremely reasonable alongside other payment benefits and flexibilities.General access to down to earth mortgages rates. Demand for rent is...

Foreign Direct Investment Trends in Guatemala

Foreign Direct Investment Trends in Guatemala

As Market observers recognize foreign investment trends in Guatemala, the Central American country emerges as a top contender for foreign business.The Guatemalan government has made great efforts to improve the country's business environment, stimulating investor confidence, and spurring Foreign Direct Investment (FDI) inflows. According to the 2019 UNCTAD World Investment Report, Guatemala received US$1,06 billion for FDI inflows in 2018. This represents a 4.23% increase from the previous year. In this article, we outline the most important foreign direct investment trends in Guatemala and why this country should be regarded as a growing hotspot for commercial activity. FDI in Guatemala fuelled by historical developments Foreign currency inflows from foreign direct investment (FDI) reached US$671.4 million during the third quarter of 2019, an increase of 6% compared to the same period in 2018. This was reported by the Bank of Guatemala (Banguat). Foreign currency inflows from FDI reached US$671.4 million during 2019. Despite neighboring economies such as Panama and Costa Rica are considered to be the most attractive business destinations in Central America, Guatemala has the highest GDP out of the region’s seven countries. In 2018, the country sported a GDP of US$78.46 billion, compared to Panama’s US$65.055 billion, and has consistently shown greater GDP growth than Panama for decades. Peace agreements reached between 1994-96 ended the Guatemalan Civil War, an internal conflict lasting 36 years. This was a major development in stabilizing the country’s economy, boosting...

Commercial Opportunities for Cannabis in Paraguay

Commercial Opportunities for Cannabis in Paraguay

The world is watching Latin America, as key players lead the world’s developing cannabis industry. Looking at recent trial steps taken by the government, the market for cannabis in Paraguay appears to be one of the next to develop. Several countries have already reviewed and changed their local laws on cannabis cultivation, manufacture, distribution and exporting and importing. We look at Paraguay’s recent decision to trial a licensing process for cannabis production in its territory. Cannabis in Paraguay and Latin America: legalization timeline Since the 2000s, countries all over the world have been lightening their stances on personal possession of cannabis. In 2005, Chile legalized personal, individual consumption of cannabis. Brazil also legalized possession and cultivation for personal use in 2006. Mexico and Argentina followed suit in 2009, as did Colombia later in 2012. 2013 was a landmark year for cannabis in Latin America. Though this development flew under the radar for several years, Uruguay was actually the first country in the world to legalize recreational cannabis, having done so in 2013. Colombia stole the spotlight, however, when medicinal cannabis laws and licensing opportunities emerged from the agricultural giant from 2015 onwards. Now, Mexico, Peru, Ecuador, and Paraguay are paring back their legislative restrictions on cannabis piecemeal. The plant and its derivative products have been decriminalized to varying degrees in these nations. Cannabis oil is now permitted in Peru. Mexico currently allows cannabis with a THC content of less than 1%, but...

Why Argentine Businesses are Investing in Uruguay

Why Argentine Businesses are Investing in Uruguay

The Argentine economy faces challenges in the process of stabilizing its macroeconomic imbalances, dealing with a high fiscal deficit, and a high level of inflation. In this context, the main economic policy variables such as the exchange rate and interest rates show high volatility that hinders investment processes and, therefore, economic growth. Investments by Argentine entrepreneurs into Uruguay have increased significantly in recent years. This is largely due to the legal security offered by the country and its stable financial system. This makes Uruguay an advantageous destination for doing business, particularly in its real estate and technology sector. In recent times, our Biz Latin Hub legal and accounting experts have encountered a growing number of cases of Argentine businesses requesting to form a company and obtain tax residence in Uruguay. We explore several main drawcards of Uruguay’s business climate that are drawing in new investors. Argentina Businesses Investing in Uruguay - Taxation characteristics in Argentina?  In Argentina, companies mainly pay the following taxes: Income Tax: rate of 35% if the company distributes dividends Gross Revenue: average rate of 3% Safety and Hygiene: average rate of 1% Bank operations Tax: 1.2% (note small and micro businesses are exempt from this) Social Security: the contribution rate can reach up to 40%. In addition, there are a number of regimes (information, retention, perception, etc), that requires the taxpayer to provide information related to the company’s activity in a monthly basis, either on purchases and...

Top Sectors for Investment in Uruguay

Top Sectors for Investment in Uruguay

Uruguay has a strong democratic tradition, characterized by its political and social stability. It has an open and growing economy, with reliable and high-level institutions and a modern and attractive investment regime. To the credit of its developing business environment, it’s one of the fastest-growing countries in Latin America. The significant growth of the country in the last decade is associated with a sharp increase in investment. In Uruguay, Foreign Direct Investment (FDI) has reached record levels, allowing the country to position itself among the main recipients of FDI, in terms of GDP in South America. We explore the main economic sectors that stand out for investors looking to form a company in Uruguay. Why invest and do business in Uruguay? Uruguay is a country with a positive track record and trajectory for political, democratic and social stability, and macroeconomic solidity. This combination creates a highly advantageous environment for foreign investment and developing successful business ventures. Uruguay offers a very favorable environment for company expansion and incorporation in various sectors of the economy. Its various commercial incentives – such as its world-renowned Free Trade Zones - attract a wide variety of companies from different sectors. While many of Uruguay’s emerging sectors remain largely unsaturated, foreign investors should consider their market entry strategies now. Agriculture and agribusiness development is crucial Uruguay is still an essentially agricultural country, and there are valuable opportunities in this sector....

Closer Chile-India Ties Good News for Business

Closer Chile-India Ties Good News for Business

The global economic context is undergoing significant change in terms of emerging and shifting powers and trade conflict. As such, nations are poised to seek new, enduring partnerships to diversify trade channels and make the most of new potential. Chile and India demonstrate such opportunistic behaviour. Though the two established formal trade relations back in 1956, these countries didn’t place their bilateral relationship under the magnifying glass again until 2016, where a Preferential Trade Agreement saw them wipe a significant amount of tariffs from each other’s exported goods. Now, they're looking at a further refresh of their partnership, to enable greater commercial and human connectivity. This is good news for companies considering preliminary expansion options into Chile, or India. History Chile-India relations Chile was India’s first formal Latin American connection. They signed a bilateral trade agreement in 1956, but it wasn’t until 2005 that the two signed another agreement on a framework for further cooperation. This framework included a Preferential Trade Agreement, which was also finalized in 2005, coming into effect in 2007 for both countries. From there, the next milestone for the two regional powers came in 2016, when Chile was India’s third-largest trading partner. They set an ambitious target of expanding their Preferential Trade Agreement to significantly widen the scope for concessional duty rates on goods traded between them. At this time, India was importing US$1.96 billion worth of goods to Chile, and exporting around $0.68 billion, totalling...

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