El Salvador is one of the most attractive countries in the region to establish and operate a business. In recent years, the Financial Times’ FDI Intelligence magazine has ranked El Salvador among the most cost-effective countries in the region.
El Salvador is an export platform to reach major markets thanks to the broad network of trade agreements with 42 countries in the Americas, Europe, and Asia. Together they represent a potential market of 1.2 billion consumers. These agreements provide flexible rules of origin, and the elimination or major reductions in import tariffs.
El Salvador has the energy your business needs. We are fueled by one of the greatest work force in the region and supported by the most cost effective and modern infrastructure in Central America.
Please feel free to get in touch by filing the form, or downloading our detailed investors guide so you can start the journey of your best business desition.
We are waiting for you.
Business Climate
Access and Connectivity
Legal Framework and Incentives
Human Capital
Investment Opportunities
Setting Up and Operating a Business in el Salvador
El Salvador is one of the most attractive countries in the region to establish and operate a business. In recent years, the Financial Times’ FDI Intelligence magazine has ranked El Salvador among the most cost-effective countries in the region.
El Salvador is an export platform to reach major markets thanks to the broad network of trade agreements with 42 countries in the Americas, Europe, and Asia. Together they represent a potential market of 1.2 billion consumers. These agreements provide flexible rules of origin, and the elimination or major reductions in import tariffs.
As part of our commitment to attract investment, we have implemented attractive tax incentives:
Free zones:
Incentives to industrial activities
Tax exemptions (income, municipal taxes and real estate transfers) and import duties
International Services Law
Incentives to strategic sectors (contact centers, BPO’s, maintenance and repair of airplanes, logistics, etc.)
Total permanent tax exemptions (income and municipal taxes) and import duties
Renewable Energy Incentives Law
Customs duties exemption on imports of machinery, equipment and materials for 10 years
Income tax exemption for a period of 5 to 10 years
Total tax exemption on revenues from the sale of Certified Emission Reductions
Tourism Law
Requires minimum of USD 25,000 investment
Corporate tax exemption (income and municipal)
Real estate transfer and import tariff exemptions
Investment Funds Law
Investment funds benefit from tax exemptions (income, VAT and other taxes), as well as exemption from charges applied to the transfer of assets for investment fund establishment
Investors benefit from income tax exemptions or reduced rates over income or gains derived from their participation in the investment fund.
Investment Law
Equal treatment to national & international investors
Liberty to transfer funds and profits abroad
Access to local financing
Law of Legal Stability for Investments
Guarantees legal certainty to investors on taxes, customs and immigration issues, for a period of up to 20 years depending on the amount of the investment. Applies for an amount greater than or equal to USD1,283,597.4 in new investment projects or the expansion of existing investments.
Public Private Partnership Law (PPP)
Establishes a legal framework for the development of PPP projects regarding public infrastructure and services.
The minimum investment to qualify for a PPP project is USD 13,687,650 million
You can download unofficial english translation of the different laws enacted by El Salvador that promote investment in our Document Center:
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