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Legal Framework


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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