Multinational corporations and expatriates are now essential players in Colombia's economy. Colombia is known for pristine landscapes, a vibrant culture, and a bustling economy. Colombia has become a favorite to expatriates as it supports any lifestyle, whether one is looking to retire at the coast or start a business in urban areas. Colombia is often associated with negative stereotypes in the movies, but the government has made an effort to make the country a secure environment for foreign and local employees and investors. Expatriates to Colombia have to make themselves aware of the pros and cons of Colombia before deciding to leave their home country.
There are many expatriates in Colombia from the U.S., Europe, and other developed nations. Expatriates move to Colombia to work, start their business or retire. Expatriates cite many reasons for moving to Colombia including climate, cost of living, excellent and affordable medical care, proximity to the US and a stable economy (Burlingame, 2017). Expatriates move to other countries in search of a new environment and experiences, and Colombia has many advantages, which is expatriates move to Colombia.
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The most significant reason for moving to Colombia is the low cost of living. Colombia offers low-cost living and an array of first-class amenities and infrastructure. Rent varies from cities, but houses in large cities such as Bogota and Medellin are still affordable. Food and drinks are also affordable as one can buy lunch for as low as $5 in urban areas (Henderson, 2016). Colombia has a variety of meals as many American fast food joints have opened branches there. Transportation is also cheap in Colombia with city buses charging approximately $0.60 for one way (Henderson, 2016). The average rent for apartments in Medellin and Bogota is between $400 and $1,000, and utilities such as electricity, water, and gas are reasonably priced. Most Colombian cities have access to fast internet. However, the low cost of living implies that salaries and wages and profits for businesses are also low. The purchasing power for Colombians is quite low, and companies might not achieve their sales target.
Colombian cities are developing at an impressive rate. Medellin, a Colombian city, was dubbed the “World’s most innovative city” in 2012 by Wall Street Journal (Henderson, 2016). Medellin is a promising IT hub with a growing number of expatriates. Other cities such as Santa Marta, Bogota and Cali have their unique attractions too. Santa Marta is the perfect place to retire, and its economy is primarily based on tourism, trade, fishing, and agriculture. Santa Marta’s pristine nature comes with tropical rainforest, snow-capped mountains, and sandy beaches. Bogota is the business headquarters of Colombia with a population of 13 million people. Bogota headquarters many local and multinational businesses, making it a suitable destination for expats seeking employment or starting new businesses (Colombia Travel Guide, 2016). The major cities have heightened security and crime has reduced drastically. For example, the homicide rate in Medellin decreased by 80% between 1991 and 2010 (Henderson, 2016). Nonetheless, Colombian cities are crowded and poorly planned.
While the cost of living in Colombia is low, expats often find themselves paying more for every product or service they purchase often known as the “gringo tax” (Henderson, 2016). The locals assume that expats are wealthy and they charge higher prices in comparison to the locals. Aside from that, Colombian government tax expats who want to invest in Colombia. The expat tax is higher than what local investors are taxed. Since the cost of living is low, income is also low for local businesses. Expatriates often work for multinationals or form their own startups if they want to earn the same salaries they made before moving to Colombia.
Expats have to be careful as crime still exists in Colombia. Gang activities are common in low-income urban areas and rural areas. There were 11,000 homicides in 2017, which is a high number for a country with 49 million occupants. Colombia has a complicated and bloody history as portrayed in the TV series Narcos, but that is no longer the situation. Nonetheless, some parts of the country are still ravaged by violence, drug trade, and conflicts and kidnappings (Colombia Travel Guide, 2016). Pablo Escobar’s infamous Medellin cartel is long gone; however, expatriates planning to relocate to Colombia have to have some appreciation of the problems and know which areas to avoid for their own safety. Colombia also has a long history of political instability as the government and Revolutionary Armed Forces of Colombia (FARC) engaged in a 50-year armed conflict that ended in 2016.
Lastly, expatriates have to take into consideration the language barrier and cultural differences. Colombians speak Spanish and expatriates have to learn Spanish if they want to interact well with the locals. Colombian culture is also family oriented with an emphasis on religion. It takes a while for expats to adjust to the culture, lifestyle, food, and the slow pace of life in Colombia (Burlingame, 2017). Moving to Colombia will be a big adjustment for people who do not speak Spanish.
In conclusion, the pros of moving to Colombia are many, but the cons are more. Colombia is an investment haven with adequate resources and amenities. Expatriates are attracted by the low cost of living and developed infrastructure, but income is also low in Colombia. Expatriates have to prepare themselves for the change and be willing to make an adjustment as life in Colombia is entirely different to the US. Colombians speak Spanish, and they have a different culture and lifestyles. It is advisable for an expatriate to move to a location with a more stable economy and government.
References
Burlingame, B. (2017).12 Things to Know Before Moving to Colombia. Expat Exchange. Retrieved from: https://www.expatexchange.com/ctryguide/4944/32/Colombia/Moving- to-Colombia-12-Things-to-Know-Before-Moving-to-Colombia
Henderson, A. (2016). Nomad Guide to Living in Colombia. Nomad Capitalist. Retrieved from: https://nomadcapitalist.com/2016/08/19/expat-guide-living-in-colombia/
“ Pros and Cons of Colombia.” 2016, Colombia Travel Guide. Retrieved from: https://www.colombiatravelguide.net/pros-and-cons-of-colombia.html
