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Registering foreign investment in Colombia: direct and portfolio investment, the FX declaration as registration, substitutions, cancellations and the end of the six month deadline

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Last verified: 2026-10-26 · Status: Changing

Foreign investment in Colombia needs no prior approval outside a few special regimes, but it must be registered with Banco de la República, because the registration is what gives the investor the right to remit profits and capital in foreign currency. When the money arrives in foreign currency through a bank or a registered compensation account, the FX declaration made at conversion is the registration; contributions in kind, capitalized debts and reorganizations are registered online in the Sistema de Información Cambiaria. Since Decreto 1044 de 2026 (5 August 2026) changes of holder, destination or receiving company and cancellations can be registered at any time instead of within six months, but the duty to register remains and breaches are fined by the Superintendencia de Sociedades up to 200 percent of the amount.

USD figures use the TRM (tasa representativa del mercado) of COP 3,158.43 per US dollar, valid 24 to 26 October 2026, from the official TRM series certified by the Superintendencia Financiera and published on the national open data portal. Amounts in UVT use the 2026 UVT of COP 52,374 (DIAN Resolución 000238 de 2025). Conversions are for orientation only.

Key facts

How foreign direct investment in currency is registeredAutomatically, with the FX declaration filed when the currency is converted through a bank or compensation account textDecreto 1068 de 2015 art. 2.17.2.5.1.1; DCIP-83 num. 7.2.1.1, as of 2026-10-26 · in force
Deadline to register substitutions and cancellations of a foreign investmentNone, at any time (six month deadline removed) textDecreto 1068 de 2015 art. 2.17.2.5.1.1 as amended by Decreto 1044 de 2026, as of 2026-10-26 · in force
Prior authorization for foreign investment (general regime)Not required, save special regimes such as the financial sector textDecreto 1068 de 2015 art. 2.17.2.2.2.2 and art. 2.17.2.3.1.1, as of 2026-10-26 · in force
Sectors closed to foreign investmentDefence and national security; processing or disposal of toxic, hazardous or radioactive waste not produced in Colombia textDecreto 1068 de 2015 art. 2.17.2.2.2.1, as of 2026-10-26 · in force
Local attorney in fact (apoderado) required for foreign investorsYes textDecreto 1068 de 2015 art. 2.17.2.2.2.3, as of 2026-10-26 · in force
Monthly IPEXT report by the portfolio administrator10 business days after month endDCIP-83 num. 7.2.2.6, as of 2026-10-26 · in force
Exchange difference on an unperfected investment that can be returned without deposit5 % of pesos originally channelledResolución Externa 1 de 2018 art. 57, as of 2026-10-26 · in force
Maximum Superintendencia de Sociedades fine for foreign investment exchange breaches200 % of amountDecreto 1746 de 1991 art. 3, as of 2026-10-26 · in force

The rule

1. Foreign investment is investment by a non resident in Colombian assets acquired under any lawful act. Direct investment covers shares, quotas or mandatorily convertible bonds of a Colombian company in any proportion (if not listed), listed shares bought with intent of permanence, rights in trust arrangements, real estate, profit linked contractual participations (concession, collaboration, licence, technology transfer), the assigned capital and supplementary investment of a branch, private equity fund units and intangibles used to earn income in Colombia. Portfolio investment covers listed securities, collective investment fund units and depositary receipt programs. Loans and other debt are never foreign investment, and using currency declared as foreign investment for external borrowing is an exchange breach.Decreto 1068 de 2015, Part 17, Title 2, as replaced by Decreto 119 de 2017, Art. 2.17.2.2.1.2 (literals a and b, parágrafos 1 and 2), 2015-05-26 official text · verified 2026-10-26
2. Foreign investment is allowed in every sector except defence and national security, and the processing, disposal or dumping of toxic, hazardous or radioactive waste not produced in Colombia. Outside special regimes no authorization is needed. In the financial sector the registration can only be made after the Superintendencia Financiera authorizes the incorporation or share acquisition.Decreto 1068 de 2015 as replaced by Decreto 119 de 2017, Art. 2.17.2.2.2.1, art. 2.17.2.2.2.2 and art. 2.17.2.3.1.1, 2015-05-26 official text · verified 2026-10-26
3. Every foreign investor must appoint an attorney in fact (apoderado) in Colombia and may appoint a different one for each investment. Portfolio investment can only be made through an administrator (a stock brokerage firm, a trust company or an investment management company supervised by the Superintendencia Financiera), which acts as apoderado and carries the tax, exchange and reporting duties.Decreto 1068 de 2015 as replaced by Decreto 119 de 2017, Art. 2.17.2.2.2.3, 2015-05-26 official text · verified 2026-10-26
4. Foreign investors and residents investing abroad must register their investments under the procedure set by Banco de la República. A registration declaration for initial or additional investments, for changes of holder, destination or receiving company, and for cancellations may be filed at any time by the investor, its apoderado or the receiving company. For investments made in foreign currency, the FX declaration filed when the currency is channelled through the FX market is the registration. The change does not alter the tax duty to file an income tax return on a change of ownership of foreign investment and indirect transfers, and DIAN may ask for proof of the Banco de la República registration. Pending exchange sanction proceedings must apply the new rule as the more favourable one.Decreto 1068 de 2015, art. 2.17.2.5.1.1 as amended by Decreto 1044 de 2026, Art. 2.17.2.5.1.1 and parágrafos 1 and 2, 2026-08-05 official text · verified 2026-10-26 · changed: Decreto 1044 de 2026 of 5 August 2026 removed the six month deadline to register changes of holder, destination or receiving company and cancellations of international investments; they can now be registered at any time.
5. Direct investment made in foreign currency is registered automatically when the investor, its apoderado or the receiving company gives the bank (or transmits from a compensation account) the FX declaration for international investments: numeral 4035 for companies and branches outside hydrocarbons and mining, 4026 for companies in hydrocarbons and mining, and 4036 for share premium. Investments paid in instalments are registered in full with the first declaration stating the total number of shares or quotas. If the receiving company is not yet incorporated the declaration names it as a company in formation and the data are completed afterwards. Advances for future capitalization are not investment but external debt: they must be reported with a foreign loan report (purpose 43) before disbursement and registered as investment only when capitalized.Circular Reglamentaria Externa DCIP-83 de 2023 of Banco de la República (compiled), Num. 7.2.1.1, literals a to e, 2023-09-12 official text · verified 2026-10-26
6. Direct investment made without currency (contributions in kind, intangibles, capitalization of sums with remittance rights, mergers and spin offs, and other lawful acts) is registered at any time by transmitting a Declaración de Registro de Inversiones Internacionales through Banco de la República's Sistema de Información Cambiaria, without supporting documents. Reorganizations use the origin "Reorganización empresarial".Circular Reglamentaria Externa DCIP-83 de 2023 (compiled), Num. 7.1, 7.1.1 and 7.2.1.2, 2023-09-12 official text · verified 2026-10-26
7. A substitution (change of the non resident holder, of the destination or of the receiving company) and a cancellation (full or partial reduction or liquidation of a registered investment) are registered at any time through the Sistema de Información Cambiaria without supporting documents, by the investor, its apoderado or the receiving company. A cancellation only proceeds if there is a prior registration. If the investor stops being a non resident it requests cancellation by a special request. Banco de la República cancels a registration on the order of the competent control authority.Circular Reglamentaria Externa DCIP-83, num. 7.2.1.4 as amended by Circular DCIP-83 of 25 August 2026, Num. 7.2.1.4, literals a and b, 2026-08-25 official text · verified 2026-10-26 · changed: Circular DCIP-83 of 25 August 2026 rewrote num. 7.1 and 7.2.1.4 so that substitutions and cancellations are registered "en cualquier momento", following Decreto 1044 de 2026.
8. Foreign portfolio investment made in currency is registered automatically with the FX declaration made by the administrator, at the net amount channelled. The administrator must send Banco de la República the IPEXT statistical report monthly within ten business days after month end, and the investor or its representative must send the daily DSIF/DCIP balances report through DECEVAL. Returns, profits and dividends of portfolio investment are remitted under numeral 4571.Circular Reglamentaria Externa DCIP-83 de 2023 (compiled), Num. 7.2.2.1 and 7.2.2.6, 2023-09-12 official text · verified 2026-10-26
9. If an investment is not completed, the pesos from the conversion can be sent back abroad only after constituting the deposit with Banco de la República (currently 0 percent), using numeral 4565. The exchange difference between the pesos converted and the capital actually contributed may be returned without the deposit if it does not exceed 5 percent of the peso amount originally channelled.
Cost to do it: The deposit on foreign borrowing and unperfected investments is 0 percent (Res. Ext. 1 de 2018 art. 48), so it has no cash cost today.Resolución Externa 1 de 2018 of the Board of Banco de la República; DCIP-83, Res. Ext. 1 de 2018 art. 47 num. 3, art. 48 and art. 57; DCIP-83 num. 7.2.3, 2018-05-25 official text · verified 2026-10-26
10. The registration declaration is made under oath; Banco de la República does not review it beyond statistical consistency, the registration only creates the rights and duties of the exchange rules and does not cure the origin of the funds. Whoever registers must keep the documents proving amount, characteristics and changes of the investment for the full limitation period of exchange sanctions.Decreto 1068 de 2015 as replaced by Decreto 119 de 2017; DCIP-83, Decreto 1068 art. 2.17.2.5.1.3 and art. 2.17.2.5.1.4; DCIP-83 num. 7.1.1, 2015-05-26 official text · verified 2026-10-26
11. The control authority must ask Banco de la República to cancel a registration if the capital was not actually invested, the investment went into a prohibited sector or lacked a required authorization, the operation is not an investment, or the act behind it is unlawful. Any foreign investment made in breach of the regime has no exchange rights or guarantees.Decreto 1068 de 2015 as replaced by Decreto 119 de 2017, Art. 2.17.2.2.4.2, 2015-05-26 official text · verified 2026-10-26
12. The Superintendencia de Sociedades supervises compliance with the exchange regime for foreign investment in Colombia, Colombian investment abroad and external borrowing by companies, and sanctions breaches under Decreto 1746 de 1991 with fines of up to 200 percent of the proven amount of the breach (the value of the operation or investment), graduated by objective circumstances such as non compliance or late compliance. Accepting the charges in writing within 15 business days of notification caps the fine at 70 percent.
Cost to do it: Exposure for an unregistered or wrongly registered investment: up to 200 percent of the amount involved; for US$500,000 that is up to COP 3,158,430,000 (about US$1,000,000).Decreto 1736 de 2020 art. 7 num. 12 as amended by Decreto 1380 de 2021; Decreto 1746 de 1991, Decreto 1746 de 1991 art. 3 and art. 22 (as summarized by the Superintendencia de Sociedades), 1991-07-04 official text · verified 2026-10-26
OperationHow it is registeredDeadline
Capital contribution in foreign currency to a company or branchFX declaration at the bank or compensation account, numeral 4035 (4026 hydrocarbons and mining companies; 4036 share premium)Same day as the conversion
Contribution in kind, intangible, capitalization of remittable sumsDeclaración de Registro de Inversiones Internacionales in the Sistema de Información CambiariaAny time
Capitalization of a reported foreign loanDeclaración de Registro with origin capitalization of external creditAny time
Merger, spin off or other reorganizationDeclaración de Registro with origin Reorganización empresarialAny time
Sale between non residents, change of destination or receiving companySubstitution through the Sistema de Información CambiariaAny time since 5 August 2026
Sale to a resident, liquidation, capital reductionCancellation (Declaración de Cancelación); remittance under numeral 4560Any time since 5 August 2026
Listed securities, investment funds, ADR programs (portfolio)FX declaration by the administrator; monthly IPEXT reportIPEXT within 10 business days after month end

How each kind of foreign investment is registered with Banco de la República (Decreto 1068 de 2015 art. 2.17.2.5.1.1; DCIP-83 ch. 7)

Worked example

  • A Spanish company subscribes shares of a new Colombian SAS for US$500,000, of which US$100,000 is share premium. Its bank converts the wire at the TRM of COP 3,158.43: COP 1,579,215,000 in total. Two FX declarations are filed at conversion, numeral 4035 for COP 1,263,372,000 of capital and numeral 4036 for COP 315,843,000 of premium, and with them the direct investment is registered (DCIP-83 num. 7.2.1.1).
  • The parent also contributes a trademark valued at COP 300,000,000 (about US$94,984). No currency moves, so the SAS or the apoderado transmits a Declaración de Registro de Inversiones Internacionales in the Sistema de Información Cambiaria (num. 7.2.1.2).
  • Two years later the parent sells 40 percent of the shares to a Mexican fund. The parties register the substitution online; there is no six month deadline after Decreto 1044 de 2026, but the seller must still file its income tax return for the change of ownership, and DIAN may ask for the registration proof (Decreto 1068 art. 2.17.2.5.1.1 par. 1).
  • Had the shareholder skipped registration, the Superintendencia de Sociedades could fine it up to 200 percent of the unregistered amount, and the investment would lack the exchange rights to remit dividends and sale proceeds (Decreto 1746 de 1991 art. 3; Decreto 1068 art. 2.17.2.2.4.2).

Step by step

  1. 1. Check the target activity is not in a prohibited sector and whether a special regime (financial, hydrocarbons and mining) needs a prior authorization or special numerals.
  2. 2. Appoint the apoderado in Colombia by power of attorney; for portfolio investment, engage a local administrator (broker, trust company or investment manager).
  3. 3. Incorporate the company or branch; if the money arrives first, declare the receiver as a company in formation and complete the data once registered.
  4. 4. Wire the capital to a Colombian bank (or a registered compensation account) and give the bank the FX declaration data: numeral, number of shares or quotas, receiving company and investor identification. Keep the declaration; it is the registration.
  5. 5. For contributions in kind, capitalized debts or reorganizations, transmit the registration declaration in the Sistema de Información Cambiaria; user access is created under DCIP-83 Annex 3.
  6. 6. Register every later substitution or cancellation online before remitting proceeds, and file the related tax return where a change of ownership is taxable.
  7. 7. Keep contracts, board minutes, share ledgers and bank documents for the full limitation period of exchange sanctions.

Common traps

  • Treating a shareholder loan as capital, or capital as a loan. Advances for future capitalization are external debt and need the foreign loan report before disbursement; using currency declared as investment to fund external debt is itself a breach (Decreto 1068 art. 2.17.2.2.1.2 par. 1; DCIP-83 num. 7.2.1.1 lit. d).
  • Thinking the end of the six month deadline means registration is optional. Decreto 1044 de 2026 removed the deadline, not the duty; an unregistered investment has no exchange rights and the Superintendencia de Sociedades can still fine the omission (Decreto 1068 art. 2.17.2.2.4.2).
  • Wiring capital from a third party account or to the wrong entity. The FX declaration is the registration and is sworn; errors in investor, receiving company or numeral need corrections under DCIP-83 num. 1.4 and 7.1.4.
  • Buying listed Colombian shares as a strategic stake without declaring intent of permanence: they are then registered as portfolio investment under the administrator regime rather than as direct investment (Decreto 1068 art. 2.17.2.2.1.2 par. 2).
  • Assuming a financial sector acquisition can be registered on closing. Registration is only possible after the Superintendencia Financiera authorization (Decreto 1068 art. 2.17.2.3.1.1).

Sources

Related pages

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