Thinking of branching out and making an investment in a foreign country? Look no further than Colombia, one of the quickly emerging markets for investors. Even Silicon Valley powerhouses such as Facebook, Google and Microsoft have opened offices in this Latin American country, signaling to other investors that now is the time to pay close attention to Colombia. Why? Here are 10 reasons to invest:
1. Growing economy.
Colombia currently has the third largest population in all of Latin America, and this is driving a rapidly growing economy. Over the last six years, the country’s GDP per capita has doubled, even outpacing the global economic growth during 2009-2010 when global GDP was on the decline. For investors, a growing economy can only mean one thing: dollar signs.
2. Free trade.
Since 2012, Colombia and the United States have worked under a free trade agreement. It was estimated that in the first year under this agreement, Colombian exports to the U.S. were valued at around $17.1 billion, while U.S. exports to Colombia were valued at $11.4 billion. With another election in Colombia not set until 2018, investors can rest easy knowing this agreement will be around for at least the next few years.
3. Tax law.
Buying property in Colombia? Use the government’s form 4 and 11 to declare and file your investment at the time of purchase. If you decide you need to sell the property and transfer funds back to the U.S., you can do so very easily in Colombia without being charged taxes. The only fees you’ll have to pay is the capital gains tax back here in America. Investors love that this country doesn’t complicate these processes, and makes it easy to transfer money back and forth.
4. Housing market.
Considering real estate in Colombia, this country has one of the best housing markets in all of Latin America when looking at the past decade. Since foreign investments still account for less than 1% in the country, now is the time to dive in before investors truly take notice and prices spike.
5. Little risk.
Many investors may think a foreign investment is a high risk situation, however this is not the case with Colombia. In 2011, the country was awarded an investment-grade rating by Standard & Poor’s, Moody’s and Fitch. Also, Colombia has the second lowest perceived investment risk in the geographical area.
6. Skilled workforce.
Almost a quarter of a million students graduate from higher education schools every year, meaning there’s an influx of skilled workers in the Colombian region. Plus, because seven of Colombia’s universities rank among the best in the world, these workers are intelligent and worthy of complex jobs.
7. Rising housing prices.
Now is the time to get in on the ground floor with Colombian real estate. Since 2008, the country has seen steady increases in housing prices, meaning an investment now will turn into a big return down the road.
8. Multiple opportunities.
While other Latin American countries tend to have few metropolitan cities, Colombia has ten. Because of where Colombia is located geographically, every region of the country offers a different opportunity for multiple industries thanks to various climates, agriculture, and development.
9. Colombian atmosphere.
Thanks to the beautiful beaches, luxurious shops, and world-class golf courses and other tourist attractions, Colombia is quickly becoming a must-see on travelers’ wish lists. If you plan on investing in real estate, investors will have no trouble renting out their properties to vacationers in the area.
10. Other countries.
Colombia is ideally located, with five seaports that give investors easy access to other markets. Also, Colombia has free trade agreements with 48 countries, meaning there are many avenues for investors to export their products.