Colombia: Temporary tax incentives to support investment in earthquake-affected regions
A new regime offers reduced income tax rates, accelerated depreciation, and VAT relief for qualifying investments through 2027.
The Colombian government has enacted Decree 1413 of 2026, establishing a temporary tax incentive regime designed to attract new private investment in municipalities affected by the August 10, 2026, earthquake.
The measure forms part of the emergency response package adopted by the government to accelerate reconstruction efforts, stimulate economic activity, and encourage the development of productive projects in the impacted regions.
Under the new regime, qualified investors may benefit from a reduced income tax rate of 20%, which may be further reduced to as low as 15% for projects that meet specified job creation targets. The decree also introduces accelerated tax depreciation for productive assets and grants VAT relief on the importation of certain goods required for qualifying projects when no equivalent domestic production is available.
The incentives are available to both resident and nonresident taxpayers undertaking new investments in eligible municipalities and operating in strategic sectors, including tourism, agribusiness, construction, manufacturing, and services. Access to the regime is subject to certification, registration, minimum investment requirements, and employment commitments.
The benefits will remain available until December 31, 2027, providing investors with a limited window to evaluate and implement projects in the affected territories.
The regime also contains safeguards intended to prevent the duplication of tax benefits and excludes certain activities, such as mining, wholesale and retail trade, and real estate activities.
KPMG observation
The new framework represents one of the most significant tax-driven economic recovery initiatives introduced in response to the earthquake and may create attractive opportunities for businesses seeking to expand operations while contributing to the reconstruction and revitalization of the affected communities.
For more information, contact a KPMG tax professional in Colombia:
Ricardo Ruiz | ricardoaruiz@kpmg.com
Camilo A. Rodríguez | camilorodriguez@kpmg.com
Pedro E. Madera | pmadera@kpmg.com