CHC Regimen

The opportunity to turn Colombia into a regional investment hub  

More than just a tax system, the CHC is a tool for attracting capital, companies, and decision-making centers to Colombia. 

When a multinational corporation establishes its holding company in a country, it brings more than just investment: it also brings jobs, talent, professional services, financial institutions, and strategic decisions that drive economic growth. 

What is the CHC plan? 

The Colombian Holding Companies (CHC) Regime is a special tax regime established in 2019, designed to make Colombia an attractive destination for companies that manage investments in various countries. 

Despite its advantages, it remains a little-used system today, which presents an opportunity for companies with international operations.

Who can access it? 

Simply put, a Colombian company can apply if: 

1. It maintains investments of at least 10% in two or more companies, in Colombia or abroad, for a minimum period of 12 months.
2. It has a substantial presence in Colombia, including staff, offices, and effective management based in the country (as a general rule, at least three employees).
3. Register with the DIAN in a timely manner to qualify for the program. 

Key Benefits 

• Foreign dividends: Dividends from foreign companies may be exempt from income tax in Colombia.

• National dividends: Dividends received from Colombian companies are not subject to withholding tax.

• Distribution to foreign investors: Dividends distributed by the CHC to its parent company abroad may not be subject to tax in Colombia, as they are considered foreign-source income. 

Much more than just a tax benefit 

The CHC regime does not seek merely to reduce the tax burden; its true purpose is to make Colombia the hub where international business groups make their investment decisions. In this regard, when a regional holding company establishes itself in the country, the following also follow: 

• Regional offices. 
• Highly skilled jobs. 
• Legal, financial, and auditing services. 
• New business opportunities.
•  Increased investment and competitiveness.

Can Colombia Become a Latin American Hub?

 Colombia has significant advantages, such as: 

• Strategic location between North and South America.
• Extensive network of free trade agreements.
• Various Agreements to Avoid Double Taxation.
• A developed financial market.
• A competitive CHC plan.

The challenge is no longer to create incentives, but to consolidate a strategy that will attract regional investment hubs for Latin America to Colombia. In this context, the CHC regime is not just a tax incentive; it is an economic policy tool designed to attract investment, strengthen competitiveness, and position Colombia as a regional business hub. 

Related benefits?

In line with the incentives inherent to the CHC regime, it is worth noting that Barranquilla offers a favorable public-private environment for attracting foreign direct investment (FDI), which, combined with its competitive and comparative advantages, makes it a strategic location for regional goods and services hubs. At the same time, instruments such as free trade zones, international trading companies, and logistics distribution centers, among others, complement and enhance the incentives of the CHC regime for companies with global operations that choose to establish themselves in Colombia, and particularly in Barranquilla.