Keep in mind when investing in Colombia

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By: Rodrigo Tannus Serrano
Partner at Tannus & Asociados
rtannus@tannus.co

 

By 2020, the Colombian government has decided to increase the current legal monthly minimum wage (SMMLV) by 6%, which means that, starting this month, it will be equivalent to $877,803. Those companies that wish to issue visas for foreign personnel by virtue of some type of relationship with them and that require proof of certain solvency, as the case may be, must take into account that the amounts contemplated in the immigration regulations and requested by the authorities are calculated in minimum wages, which is why, in cases where bank statements, certificates of incorporation and representation, among others, must be presented, such documents are expected to reflect the values requested, taking into consideration the corresponding adjustment for this year, under penalty of receiving requirements or inadmissibility of the visa applications submitted.

Although the migrant worker visas, as well as the pensioner or annuitant visas request that some requirements contemplate certain amounts in minimum wages, following, I want to highlight those visas that are issued in Colombia by virtue of an investment, since, in case of wanting to obtain a visa by this way, the corresponding increase for this year must be taken into account. It is worth mentioning that in those cases in which the procedures and processes of investment have been initiated last year and do not comply with the amount stipulated, an additional investment must be made in order to comply with the provisions of the immigration regulations.

 

Migrant Visa for Entrepreneur M-6

This type of visa applies to the foreigner who has constituted or acquired participation in the capital stock of a commercial company in amounts equal to or greater than 100 SMMLV.

This type of visa is valid for up to three years and grants a limited work permit, that is, they may only work for the company in which the foreigner is a partner or shareholder. It is important to mention that in this type of visa the investment does not have to be direct as it happens in the other visas described below.

 

Migrant Visa for Real Estate Investors M-10

This visa applies to foreigners who have registered with the International Exchange Department of the Colombian Central Bank foreign direct investment in Colombia represented in real estate, for amounts equal to or exceeding 350 SMMLV. It is valid for up to three years, and the investor will not have permission to work.

 

Resident Visa for Foreign Direct Investment R

A foreign investor who has registered with the International Exchange Department of the Colombian Central Bank direct foreign investment in amounts equal to or greater than 650 SMMLV. The validity of this visa will be indefinite even though the label stamped in the passport only establishes a validity of five years and has an open work permit, which allows the foreigner to develop any legal activity in the national territory.

It is hoped that by having an increase like the one provided by the National Government, foreigners will be able to continue making different types of investments in the country so that they can also benefit from immigration by issuing visas that will not only allow them to look after their businesses in Colombia but also have the opportunity to carry out other activities in order to, why not, create and promote new businesses from which Colombian society in general will benefit.

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