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Competitive Costs


El Salvador is a competitive location to set up and operate a business in Central America. According to fDi Intelligence of The Financial Times journal El Salvador stands among the most cost-effective countries in the region.

 

Labor Costs

El Salvador’s Labor Code regulates employer-worker relations. Salvadoran legislation states that wages are determined freely, but cannot be lower than the minimum wage established by the National Wage Council, revised at least every three years.

 

Free Trade Zones and Services Parks

El Salvador offers investors industrial land in free zones and service parks where companies can benefit from generous tax incentives and can access quality services to operate and export their products and services to foreign markets.

Electricity

El Salvador has one of the most competitive electricity prices in the region for industrial and commercial users.

The different rate in El Salvador are:

Telecommunications

The telecommunications market has multiple suppliers offering a variety of voice and data services and value-added solutions that meet customer needs.

Corporate customers may request different bandwidths and get preferential rates, depending on the contracted plan.

* Rates for postpaid plans

Source: SIGET and operators (2011)

Taxation

According to the World Economic Forum, El Salvador ranks as the country with the lowest tax rate in the region (ranked number 56 globally).

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