Colombia Seeks to Reel in Fresh Investments in Travel Infrastructure 

Colombian President Iván Duque signed Decree 1652 of 2021, which regulates the 9% preferential income benefit for services provided in new hotels, theme parks, ecotourism and agrotourism parks and nautical piers.

Likewise, the benefit will be applied to services provided in hotels and theme parks that are remodeled or expanded.

For projects that are built as of December 31, 2020 and until December 31, 2030 in municipalities with a population of up to 200,000 inhabitants, the differential tax treatment will be recognized for a term of 20 years from the taxable year following the start of the provision of services.

In municipalities with a population equal to or greater than 200,000 inhabitants, it will be applicable in built infrastructure as of December 31, 2020 and until December 31, 2026. Its recognition will have a term of 10 years from the taxable year following the beginning. of the provision of services.

Income from services provided in hotels that are remodeled and / or expanded between December 31, 2020 and December 31, 2030 in municipalities with a population of up to 200,000 inhabitants will have access to the benefit for 20 years.

In municipalities with a population equal to or greater than 200,000 inhabitants, the term will be 10 years in hotels and theme parks that are remodeled and / or extended between December 31, 2020 and December 31, 2026.

The rate will be applied to the proportion equivalent to the percentage that represents the value of the remodeling or expansion in the fiscal cost of the remodeled property.

For hotels, the value of the remodeling and / or expansion cannot be less than fifty percent (50%) of the value of the acquisition of the remodeled and / or expanded property. For theme parks, the value of the remodeling or expansion cannot be less than 33% of the value of the park.

Source: Travel2LATAM