Colombia once again ranked among the world’s most complex countries for doing business, according to the latest Global Business Complexity Index prepared by international firm TMF Group.
The report ranked the country as the third most complex in Latin America for business operations, behind only Mexico and Brazil, and sixth globally among the 79 jurisdictions analyzed.
The result once again highlights the structural difficulties faced by investors, entrepreneurs, and multinational companies in Colombia. The combination of bureaucratic procedures, frequent regulatory changes, tax pressure, and an uncertain political environment continues to weigh on the country’s competitiveness.
Nevertheless, Colombia —which dropped one position compared to previous years— is surpassed in business obstacles and complexities by European economies historically considered complex and developed, such as France and Greece, the latter leading the ranking.
Colombia is Latin America’s third most challenging country for business
TMF Group’s report annually analyzes the difficulties involved in establishing, operating, and expanding businesses across different countries worldwide. To do so, it evaluates hundreds of indicators related to taxes, payroll, human resources, corporate management, and regulatory compliance.
In the 2026 edition, Colombia remained within the group of jurisdictions considered most complex for business activity, ranking sixth in the overall global index.
Although the country improved slightly compared to the previous measurement, moving from fifth to sixth place globally — in 2024 it held a concerning third position — according to some sections of the study, it continues to be one of the most difficult environments for international companies seeking to expand in Latin America.
TMF Group stated that political instability and bureaucracy remain determining factors explaining that position. The report argues that companies face lengthy administrative processes, shifting regulatory frameworks, and high levels of tax requirements. Added to this are labor difficulties and compliance burdens that increase operating costs and reduce corporate agility.
The study concluded that Latin America continues to be one of the world’s most complex regions for doing business. Mexico and Brazil —the two largest economies in Latin America— led the regional ranking, followed by Colombia, in a scenario where companies must deal with difficult tax systems, extensive procedures, and constantly changing regulatory frameworks.
TMF Group explained that this trend has persisted for several years and reflects structural problems across the region. Among them are excessive dependence on in-person or paper-based processes, administrative sluggishness, and regulatory fragmentation among different government authorities.
In contrast, the countries considered least complex for investment are usually located in Northern Europe or international financial hubs where rules are more stable, processes are digitalized, and tax systems are simplified.
The comparison is particularly striking because Colombia ranked below several European economies traditionally viewed as difficult for business operations. The country even appeared better positioned than markets such as France or Greece in some components associated with corporate management and international regulatory compliance.
The factors affecting Colombia’s business climate
One of the most sensitive points highlighted by the report is regulatory uncertainty. Local and foreign companies face frequent changes in tax, labor, and corporate regulations, making long-term planning more difficult and forcing businesses to allocate more resources to legal and administrative compliance.
Colombia’s tax system also appears as one of the main sources of complexity. Business owners must deal with multiple tax obligations, constant reporting requirements, and recurring legislative changes.
According to private-sector analysts, this situation particularly affects small and medium-sized businesses, which have less financial capacity to absorb regulatory costs.
Added to this is the labor component. Companies must adapt to changing rules regarding hiring, social security, payroll, and labor relations. The report warns that these processes can considerably increase the operational burden for those seeking to expand or hire personnel in the country.
External factors also weigh heavily, such as perceptions of legal insecurity, political polarization, and economic tensions stemming from the global slowdown. Although Colombia maintains significant advantages such as market size, strategic location, and access to trade agreements, investors continue to observe the local environment cautiously.
The challenge of attracting foreign investment
The ranking comes at a time when Colombia is seeking to strengthen foreign investment inflows and reactivate key sectors of the economy. However, experts believe that the persistence of high levels of corporate complexity could become a barrier to new business projects.
Various economic sectors have insisted on the need to simplify procedures, stabilize the rules of the game, and accelerate government digitalization to improve the business climate. They are also calling for greater coordination among public entities to reduce regulatory duplication and administrative delays.
In business forums and economic debates, some business leaders argue that the bureaucratic burden ultimately affects competitiveness compared to other countries in the region that offer more agile processes for opening companies, hiring employees, or carrying out investments.
Part of that perception is also reflected in public discussions and social media, where citizens and entrepreneurs frequently point to tax complexity and insecurity as recurring obstacles to entrepreneurship in Colombia.
Despite this scenario, TMF Group’s report clarifies that complex countries do not necessarily lack economic opportunities. In fact, many highly regulated markets continue attracting investment because of their size, natural resources, or consumer potential.
According to the study, the difference lies in companies’ ability to navigate demanding regulatory environments and adapt quickly to regulatory changes.