El Salvador has generated a unique business climate in the region, specially designed for private investment, through the National Trade Facilitation Strategy, which aims to make the country an attractive, safe, and competitive destination on an international scale.
This strategy has modernized the services provided by public institutions, both for citizens and companies, making it possible to reduce costs in time and money, in addition to streamlining processes for the revitalization of the economy.
We have reduced times in foreign trade operations, accelerated the clearance of merchandise at maritime and port terminals, and expanded infrastructure, which has resulted in important multinational companies setting up and operating in the country.
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Safety and freedom
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Investment protection
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Simplification of procedures
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Commercial agreements
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Attractive tax incentives
The historic crime reduction figures have returned El Salvador’s dreams of greatness and made it the safest country in Latin America. The successful security strategy promoted by the government of President Nayib Bukele has made the world turn its attention to El Salvador, and increased international tourism, insertion into new markets, and investment by large local and foreign companies.
This reality has given freedom, security, and tranquility to the entire population, including entrepreneurs and investors, to operate their businesses in the country and project themselves into the opening of more businesses.
El Salvador maintains a strategy of continuous and coordinated actions to attract new investments and to develop long-term relationships with investors.
It has established an appropriate legal framework with the creation of the Investment Law, which allows the country to compete internationally in the effort to attract new investments to contribute to its economic and social development.
The Investment Law encourages and protects private investment and, more specifically, foreign direct investment, guaranteeing equal treatment for investors and allowing the transfer of funds abroad without delay and with the freedom to convert currency through the banking system.
The protection of property and legal security is also promoted in accordance with the Constitution, guaranteeing foreign and national investors the protection of their assets and the right to freely dispose of their assets.
El Salvador is making progress in eliminating the red tape and bureaucracy that slows down the dynamization of the economy. Currently, the country has 424 simplified processes, 222 digitized, and 152 procedures with one working day resolution and a 60% total time reduction.
To export, a procedure takes an average of 5.3 minutes; previously it took up to 72 hours.
On the other hand, the country has initiated the digitalization plan for public services, through the Digital Agenda 2020-2030, to improve efficiency, and the quality of life of citizens and have a significant impact on the business climate of our country. This initiative will modernize and streamline the procedures and services provided by the State, with the integration and use of new technologies.
El Salvador has opened itself to the world by developing conditions that generate economic opportunities for entrepreneurs and entrepreneurs from all sectors of the country, as well as by ratifying the good relations that exist with different nations, which are recognized for their prominent international markets. It has established Free Trade Agreements (FTAs) with Mexico, the Dominican Republic, Chile, Colombia, Taiwan, Panama, South Korea, and the United States.
It has also established Partial Scope Agreements (PSAs) with Cuba and Ecuador Association Agreements with the European Union, United Kingdom of Great Britain and Northern Ireland, and a General Treaty of Central American Economic Integration.
The country also has a solid network of trade agreements, which include 12 agreements that facilitate trade relations with 41 countries in the Americas, Europe, and Asia. These agreements open the doors to a potential market of approximately 1.2 billion consumers and represent an invaluable opportunity for commercial expansion and diversification.
The legal framework of El Salvador establishes a total exemption from income tax, municipal taxes, taxes on the transfer of real estate, as well as customs duties and taxes for the importation of machinery, equipment, raw materials, and other items used in the production of goods and services.
In addition, to generate the necessary conditions for investments, President Nayib Bukele presented to Congress a package of bills (to be developed or modified) to promote investment attraction, eliminate bureaucracy, and create tax incentives with the purpose of injecting the national economy with greater economic growth and generating more and better jobs throughout the country.
There are 8 laws containing tax incentives or benefits for investors in different sectors:
Industrial Free Trade Zones and Commercialization Law
International Services Law
Law for the Promotion of Innovation and Manufacture of Technologies
Law for the Issuance of Digital Assets
Law on Fiscal Incentives for the Promotion of Renewable Energies in Electricity Generation
Law for the Creation of the Planning Authority of the Historic Center of San Salvador
Law of Legal Stability for Investments
Law on Taxes on the Transfer of Movable Goods and the Rendering of Services