Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 7

Investor compliance with the laws and regulations in the home countries of their investments should be part of their regulators' due diligence process. They, in turn, should be treated equitably in the home country of their investments especially in respect to their rights to shareholder benefits and concessionary arrangements under double tax agreements.

1.	Do domestic regulators monitor the procedures in place at their locally based cross-border custodians to assure compliance with the laws and regulations of the home countries of their investments?	No. Local regulators only monitor the regulations pertaining to the local market.
2.	What are the areas (e.g. benefits, investor compensation) where foreign investors are not treated in the same way as local investors?	Decree 2080 grants foreign investors the same rights as local investors. However, foreign investors are restricted from purchasing more than 20% of the whole issuance of fixed income instruments with a maturity less than two years.
3.	Can sales proceeds and income be repatriated without any restrictions?	No. There are no restrictions on the repatriation of sale and income proceeds if the transaction is registered with the Central Bank.
4.	Are double tax agreements simple to apply, and do foreign investors receive promptly their full entitlement to dividends and interest payments?	Colombia does not have any double taxation avoidance treaties. Although certain exceptions exist, the tax rate on dividends and interest is 35%.