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Laws and benefits for investors in the digital technology services industry

El Salvador aims to promote and protect foreign investments by providing a harmonious legal framework and competitive incentives for all foreign local and foreign investors looking for an attractive business climate with financial freedom.

Easy procedures

PROESA, El Salvador’s agency that promotes investments and exports, is mandated to serve and advise investors on streamlining government and baking procedures, making it a quick and straightforward process.

Equitable legal framework

Foreign and local investors have the same rights and obligations without being able to apply unjustified or discriminatory measures that hinder the establishment, administration, use, extension, sale, and liquidation of their investments.

Trust in foreign banking transactions

Foreign investors are guaranteed their right to transfer funds related to their investment abroad without delay and the freedom to convert their currency through the banking market.

Property and Security Protection

El Salvador’s Constitution recognizes and guarantees the protection of national and foreign investors’ property and the right to dispose of their assets freely.

El Salvador’s International Services Law

El Salvador’s International Services Law provides tax incentives to companies that offer services to foreign clients. Companies may locate themselves in parks or service centers to enjoy these benefits.

With the International Services Law, El Salvador promotes the following activities:

Information Technology:

    ?Software design and development

    ?Computer systems and applications

Other activities:

    ?Call centers, BPO, technological equipment repair, research & development, etc.

International Services Law Benefits:

    ✅Exemption from customs duties and other taxes on the import of machinery, equipment, tools, spare parts, accessories, furniture, and other necessary goods for the execution of the activity.

    ✅Total income tax exemption for incomes from incentivized activity while having their operations in the country.

    ✅Total municipal taxes exemption from the company’s assets while operating in the country.

Service Parks:

Delimited areas in which companies dedicated to providing international services are established and operate and that receive the tax benefits of this law.

Service Centers:

When a company with an eligible activity –previously specified in the law– cannot locate itself within a service park (for physical or technical reasons), it may be authorized to operate outside as a service center and enjoy the benefits of this law.