Bolivia is a little-known country, but it has a great potential for foreign investment. Despite many political changes in the last decades, which create restlessness in possible investors, in recent years there is relative stability. The world is aware of the need to safeguard the environment by replacing fossil fuels with renewable energies, which is why this country is contributing to this great initiative through fiscal policies that encourage local and foreign investment. It is also committed to the Sustainable Development Goals (SDG) of the United Nations.
It is fundamental to understand Bolivia has power on natural resources. As, at least, eight cities are one of the most upper in the world. In fact, two of those are Sucre, the capital city, and La Paz, the government headquarters. In a certain way, this is why Bolivia has a large production of renewable resources like solar, eolic, hydroelectric and geothermic energies. The country has a huge solar radiation and constant winds, especially in the South and Altiplano Andino.
Firstly, beginning with general benefits, investing in renewable energy provides a 50% reduction on CIT. In addition, solar, eolic and geothermic energy extends the exemptions to VAT when it comes from importation of wind turbines, inverters, solar panels, batteries, among others. Finally, hydroelectric energy receives the same CIT incentive, but VAT applies on a 10% when importing equipment destinated to hydroelectric centrals construction.
In conclusion, Bolivia offers a huge variety of fiscal and financial benefits with the aim of diversify energetic matrix, just as contributing to the well-being and reducing climate change. So, you can count on Auxadi in accounting, payroll and tax management, as it can be important in developing your company in Bolivia or another country.
Can Auxadi help?
Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.
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Founded in 1979, Auxadi is a family-owned business working for multinational corporations, private equity funds and real estate funds. It’s the leading firm in international accounting, tax compliance and payroll services management connecting Europe and the Americas with the rest of the world, offering services in 50 countries. Its client list includes many of the top 100 PERE companies. Headquartered in Madrid, with offices in US and further 22 international subsidiaries, Auxadi serves 1,500+ SPVs across 50 jurisdictions.
All information contained in this publication is up to date on 2024. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.