Velocity Global is in business in Bogota, Colombia and it seemed like an opportune time to draw attention to this rapidly growing, globally-investment-minded economy. Virtually every major bank is present, the number of young professionals is highly noticeable, and the Economist ran a recent article touting Colombia as the new growth powerhouse in Latin America. With a Q1 growth rate of 6.4%, this clearly dwarfs the lagging growth of traditional business centers like Brazil and Argentina. And with recent cuts to payroll taxes, job growth is skyrocketing. While oil production is decreasing in Colombia, it seems quite clear the rest of the economy is picking up where oil is leaving off.
From an inward-investment perspective, Colombia is incredibly friendly to foreign investment – the US in particular. The US accounts for over 36% of Colombian exports and Colombia reciprocates by buying 24% of their imports from the US. English is readily spoken in the workplace and the younger workforce is accustomed to working for foreign companies.
Finally, the cost to employ is significantly less than some other Latin American countries. Colombia has a unique payroll system which allows for reduced overhead if you can qualify. “Ordinary salary” results in approximately 53% for employer contributions, but “integral salary” results in only approximately 27% for employer contributions.
If you’re thinking about expanding into Latin America, we think Colombia deserves a close look. And if you want to discuss how you may be able to qualify for the “integral salary” method, shoot us an email or give a call to discuss further. Our Colombia Employment Services are top notch.
– Ben Wright