| |
Promoting Investments, Advantages of Investing in Bolivia
Bolivia offers investors the
following advantages:
 |
It has
a democratic, representative system, with a stable
political and economic system.
|
|
|
Economy has shown sustained growth.
|
|
|
Over
the last 15 years, the rate of inflation is amongst the
lowest in Latin America..
|
|
|
Bolivia is a member of the Latin American Association
for Integration (ALADI), the Andean Community (CAN), and
an associate member of the Southern Common Market
(MERCOSUR). This implies access to a potential market of
over 270 million people.
|
|
|
It is
a member of the World Trade Organization (WTO)..
|
|
|
It has
preferential access to American and European markets,
with “most favored” country status through the Law of
Preferential Customs Fees for Andean Countries (LPAA),
and the Generalized Preference System (SGP)..
|
|
|
Foreign investors have the same rights, duties, and
guarantees as the national investors, besides having the
right to ownership.
|
|
|
A
system of free exchange is guaranteed, there are no
restrictions for capital to enter or leave, or for
remitting dividends, interest, and royalties overseas
for transfer of technology and/or other commercial
concepts.
|
|
|
Freedom of production, sales, imports, and exports of
goods and services, as well as the free determination of
prices, are guaranteed.
|
|
|
Exporters of goods and services recover their internal
taxes and the tariffs paid on supplies and goods
incorporated into the merchandise to be exported.
|
|
|
Bolivia has a simple, attractive tax system.
|
|
|
Through reciprocal international agreements with many
countries, income tax payment in Bolivia avoids double
taxation overseas.
|
The most important taxes are:
INVESTMENT LAW
The framework Law for
private investments in Bolivia is the Investment Law. The objective
of the Law is to encourage and guarantee national and foreign
investments, promote Bolivia’s growth and social and economic
development through a system that governs both national and foreign
investments. The following are some outstanding points of the Law:
|
|
It guarantees the same treatment –
the same rights, obligations, and guarantees – to
national and foreign investors. Also, private
investments do not require any prior authorization or
registration before any kind of entity.
|
|
|
It
guarantees the right to ownership without any
limitations, except for those that are stipulated in the
Constitution and/or laws.
|
|
|
There
are no restrictions on capital entering or leaving the
country, or on overseas remittances of dividends,
interest, and royalties.
|
|
|
It
guarantees free money exchange and the faculty to carry
out all kinds of operations in local or foreign
currencies.
|
|
|
It
guarantees freedom to contract investment insurance in
the country of overseas
|
|
|
It
guarantees freedom to import and export goods and
services.
|
|
|
It
guarantees the freedom to determine prices and the
freedom to produce and sell goods and services
|
|
|
It
guarantees the freedom to submit contractual differences
to arbitral tribunals.
|
|
|
It
guarantees the freedom to negotiate and establish
salaries and labor benefits between the parties (employers
and workers.
|
|
|
It
guarantees the freedom to make joint investments between
national and foreign investors, under joint ventures.
|
|
|
There
are industrial free zones oriented towards exports,
commercial free zones, and storage terminals, as well as
a temporary entrance system for exports, with the
faculty to function under a customs and fiscal
segregation system, with tax and tariff exemptions |
|
|
