FAQ’s

A: We offer logistical platforms near the main consumption centers either inside or outside of Zona Franca Metropolitana. Our distribution centers are consistent with world standards. We comply with the current Colombian legislation and our distribution centers provide operative efficiency that represents cost savings, productivity and competitiveness to our clients.

A: The country’s deindustrialization is a fact and this has led to an important increase of the demand for large volumes of storage space for mass consumption products and pharmaceuticals at the outskirts of the cities. However, the phenomenon of “reduced mobility” can be a threat for important worldwide players to establish themselves in our country. The “logistical corridors” must be defined and respected and there must be legislation that ensures normative stability (the government should not force businesses to leave the main cities and then afterwards bring them back).

A: We have been focused on developing high standard projects that can be compared to private infrastructure of warehouses from Europe and North America. Our standards of design, operation, number of parking spaces, loading bays per storage area, and flexible areas make us relevant to national and multinational companies that are looking to establish their distribution centers.

A: The most important part is to innovate. We must be aware of what happens in other countries and permanently understand what the market is asking for. Logistics is a field that constantly evolves and the hubs to establish distribution centers are being redefined permanently. It is necessary to be aware of development plans, understand population dynamics, and identify possible locations to develop new platforms, in order to remain in the market.

A: Currently, from the private infrastructure for logistics point of view, there is underdevelopment in terms of square meters available for innovative and highly efficient companies to find an adequate place to locate their operations. The current deficit is about 1,000,000 square meters, which gives greater value to projects that fulfill worldwide standards.

A: Yes, our free trade zone is a pilot project of the Association of Sustainable Constructions and will be one of the first Colombian projects to have the Colombian Sustainable Construction Seal (local version of LEED certification).

A: The industrials see as a threat the announced “structural tax reform”, which will probably increase VAT and CREE tax. The Free Trade Zones that were declared before December 31st of 2012 are exempt of CREE tax (not Para fiscal charges) and are charged a 15% income tax. This will very likely mean that business owners that are established in Free Trade Zones will be more competitive and undertake free trade agreements in a better way. We think the second semester of 2015 will be a good one for us.

A: ZFM is an unconventional free trade zone because we ONLY provide “finished products”, in other words, we differ from other free trade zones because we do not sell an urbanized lot, but we provide our clients with complete solutions ready to operate. We sell large covered areas with the necessary utilities for industrial and logistical operations. If we analyze this from our point of view, we are a great catalyst of construction in the area (due to the magnitude of our project).

A: Our free trade zone will have approximately 100,000 square meters of built area for storage, call centers, and data centers, and 20,000 square meters of buildings for education services. Today we have approximately 20,000 square meters built and operating, and another 20,000 square meters under construction for industrial and logistic warehouses (to be finished in June 2015) and 10,000 square meters of a building for education services.

A: There are no minimum asset restrictions to be established inside of Zona Franca Metropolitana.

A: It is not necessary to import or export to be established inside of Zona Franca Metropolitana. The only requirement is to establish a new corporation and perform legal activities.

A: 15% income tax over 100% of the operation, without restricting sales to national or international markets. No VAT for local purchases, no import tariffs or VAT for international purchases, no VAT for fixed asset purchases, and reduction of local taxes (town of Cota).

A: Yes, Gradual Exemption of ICA (8 years)

Year % of Exemption % to Pay
First Year 70% 30%
Second Year 60% 40%
Third Year 50% 50%
Fourth Year 40% 60%
Fifth Year 30% 70%
Sixth Year 20% 80%
Seventh Year 10% 90%
Eighth Year 10% 90%

The new companies that wish to benefit from this tax exemption must comply with the requirements established for the application and present it before the town of Cota during the five next years counted since the publishing and sanction of this agreement.

Employability Incentive

Companies located in the industrial areas of the Town of Cota may obtain an additional benefit that consists of a 20% exemption if more than 20% of its operating employees and 3% of its administrative, professional, an technical employees have been residents of the town of Cota for more than five years. This must be certified by the competent authority and those percentages must be maintained throughout the period of the tax exemption. For further information, click here.

A: We have reached the quota limit for investors. Currently, Zona Franca Metropolitana only provides areas for sale and rent to final users.

A: Yes, our clients may present the technical specifications of a project according to their needs, indistinctly if it’s to buy or to rent.

A: The process begins by presenting the request for entry as a user to Zona Franca Metropolitana, and finishes with the technical approval of the infrastructure that user will be building. The qualification as a commercial or industrial user of Zona Franca Metropolitana is subject to the description of the project that user will develop. This description must specify the entire industrial or service processes that will take place inside of Zona Franca Metropolitana, including commercialization and positioning strategies, amongst others. It is necessary to create a new legal entity located in Colombia or establish a branch of a foreign corporation in this country. For any case it will be required to present the documentation and studies.

If you wish to find out about the entire process, you may download here the passbook of Zona Franca Metropolitana user qualification. If you have any specific doubts, contact us by clicking here.

A: Yes, in the free trade zone system it is allowed for commercial and industrial goods and services users to be qualified inside of one or several free trade zones.

A: The Tax Reform law 1607 of 2012 maintained stability for the free trade zones approved in Colombia until 2012. Due to this fact, those free trade zones and the people that make use of them will continue to pay an income tax of 15% and will be exempt of the 8% CREE tax.

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