Taxes and Incentives

• Companies that employ people under 28 can benefit from a 120% tax deduction if it is the employee’s first job.

• Businesses with investments in R&D, Efficient Energy Management measures, and electric power production from Non-Conventional Energy Sources can benefit from an income tax reduction of up to 50% for 15 years.

• Rionegro is the free trade zone of Medellin. Businesses in this zone can benefit from a single income tax rate of 20%, with no VAT or tariff imposed and exemption from VAT for raw materials or inputs for industrial users.

• In 2022, the Colombian government announced that they will introduce a “Digital Nomad Visa” for the ones that have at least US$ 684 in monthly funds.

• Medellin Mayor’s Office introduced “The Public Policy for Science, Technology, Innovation and Reindustrialization 2021 -2030” plan to keep up with the emerging trends in the technology sector. The plan aims to train the local workforce to adapt to this transformation process better.

• Colombia offers generous incentives for investments in R&D projects. Investors can benefit from up to 100% tax deduction, and 25% of the amount invested can be credited in the year investment is made.

• Investments in agriculture, fishing, and rural development benefit from a 10-year income tax exemption.

• MedellinInnovation District is a technology zone of Medellin, hosting local and global organizations that would like to be at the heart of technology and innovation. The district also provides socializing opportunities with a vast range of restaurants and parks in its 3 km2 size.

Investor Landscape

• Red de Ángeles Inversionistas is an angel investor network based in Medellin, Colombia. The network invested in more than 70 startups. The investment ticket ranges between US$ 10,000 to US$ 1 million.

• Development Bank of Latin America (CAF) is a regional organization that supports LATAM’s companies for sustainable development of the region. In 2022, CAF is one of the investors of Medellin-based startup Sempli.

• Bancoldex is Colombia’s business development bank, which contributes to local enterprises’ sustainable growth. Their Medellin branch is located in Calle 7 Sur.

• There are five venture capital firms in Medellin, with an investment portfolio ranging from early-stage to late-stage ventures. These are namely, INVX, AI Fund, Veronorte, Grupo Sura and FCP Innovación SP.