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.
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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.
El Salvador provides an excellent opportunity for investment in the energy sector, with clear rules and transparent processes which allow stability in rates, which positions us as one of the most competitive markets in Central America with thriving participation in the regional electricity market (MER), born within the framework of the Electrical Interconnection System of the Countries of Central America (SIEPAC). We have a national energy market with a dynamism driven by international and local companies in the generation, distribution, and commercialization of electricity, a public-owned transmission company, and an energy policy with a vision for the future and the adequate institutional infrastructure for the development of the sector.
Key facts
Advantages of investing in El Salvador
Constant energy demand growth
Strong commitment of the country to diversify the energy matrix
Developing generation potential of wind, geothermal, small hydroelectric power plants, biomass, biogas and solar photovoltaic sources
Renewable Energy Incentives Law that offers attractive tax incentives to projects that generate electricity with renewable resources, up to 10 years.
The country’s legal framework allows companies to generate their own energy and sell their surplus in the electricity market
Investment Opportunities
Power supply generation for the spot market where the nontraditional renewable energy sources (solar and wind) have supply priority
Bilateral contracts directly agreed between generator and distributor
Distributed generation projects for industrial use
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