Creates an Extraordinary Regime for the Promotion and Protection of Strategic Investments

17 Dec 2025

On 17 December 2025, the Government of the Plurinational State of Bolivia adopted Supreme Decree No. 5503 in response to a declared economic, financial, energy and social emergency. The decree introduces exceptional, temporary measures to stabilize the economy, address fuel and foreign-exchange shortages and support the recovery of production, investment and employment. It includes the creation of an Extraordinary Regime for the Promotion and Protection of Strategic Investments (REPPI).

REPPI applies to new and expanded investments, reinvestments, modernization, public–private partnerships, concessions and investment contracts. Strategic investments are defined as those aimed at developing natural resource production circuits and economic activities aligned with national development planning. Priority sectors include agribusiness and food production; export-oriented manufacturing; formal mining and metallurgy; hydrocarbons and energy; logistics and transport infrastructure; and power generation and renewable energy.

The regime includes the following provisions:

• Core investment protection principles, including fair and equitable treatment; non-discrimination between domestic and foreign investors; legal certainty; regulatory and contractual stability; proportionality; and good-faith administration.

• Reinforced legal and tax stability for up to 15 years for protected investments, covering tax rates, customs regimes, foreign trade rules, and rules on access to and repatriation of foreign exchange, with subsequent legal changes inapplicable without the investor’s consent.

• Investment contracts with binding legal force, approved by Supreme Decree, may be concluded for strategic investments. These contracts will specify investment commitments, applicable incentives under existing legislation, stability clauses and dispute-settlement mechanisms

• A fast-track approval procedure for strategic investment, mandatory administrative deadlines, positive administrative silence, and a maximum approval period of 30 calendar days.

• Availability of conciliation and arbitration as dispute-settlement mechanisms in investment contracts, including the possibility of appointing national or international arbitrators, in accordance with domestic arbitration legislation

The decree also establish a One-Stop Investment Window under the Ministry of Foreign Affairs to promote, negotiate, coordinate, and supervise strategic and foreign investments, including international investment cooperation.

In addition to the REPPI framework, Supreme Decree No. 5503 introduces a set of temporary, economy-wide tax and customs incentives in support of economic recovery during the declared emergency period. These include:

• Accelerated depreciation for fixed assets acquired from 1 January to 31 December 2026.

• Zero customs duties on selected capital goods, machinery and industrial inputs.

• VAT incentives, including suspension of VAT withholding and temporary refunds for purchases of capital goods by eligible taxpayers.

• Tax relief for employment and entrepreneurship, with support for new firms and independent professionals.

• Preferential tax treatment for capital repatriation and regularization, conditional on productive investment or retention in the domestic financial system.

Nature of measure:

• Facilitation
• Other regulatory changes
• Incentives

Type:

• Treatment and operation (Non-discrimination, Other)
• Promotion and facilitation (Investment facilitation , Investment incentives)

Industry:

• Not industry specific
• Primary (Agriculture, forestry and fishing, Mining and quarrying)
• Manufacturing (Manufacture of food products, beverages and tobacco products)
• Manufacturing (Manufacture of food products, beverages and tobacco products)
• Services (Electricity, gas, steam and air conditioning supply, Construction, Transportation and storage)

Sources:

• Gaceta Oficial del Estado Plurinacional de Bolivia, DECRETO SUPREMO N° 5503, https://bolpress.com/wp-content/uploads/2025/12/DS5503.pdf, 17 Dec 2025
• Ferrere, Extraordinary regime for promotion and protection of strategic investments, https://www.ferrere.com/en/news/extraordinary-regime-for-promotion-and-protection-of-strategic-investments/, 23 Dec 2025