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El Salvador

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List of incentives available in this location for quick easy reference below.

Incentives

Table key

  • Incentive offered
  • Incentive not offered
  • Did not submit information
Cash grants/incentivesMore [+]Less [-]

FOSEP (Salvadoran Fund for Investments studies), finances activities and general and specific pre-investment studies, promoted by both the public and private sector. Prefeasibility and feasibility studies, among others.
Tax exemptionsMore [+]Less [-]

Tax Incentives (Conditions Apply)

  • Total permanent taxes exemption (VAT, income and municipal tax) and import duties
  • Corporate tax exemption (income & municipal)
  • No tax on imports
Property assistance / other fiscal incentiveMore [+]Less [-]
  • PROESA offers establishment assistance, linking investors with Free Zones and real estate companies.
  • The agency provides investors information about all the Free Zones in El Salvador, the contacts details, average costs, land available inside the Free Zones and services provided by them.
  • PROESA helps companies with all the establishment processes (documents and information requirements, among others).
Training and labor market assistanceMore [+]Less [-]
  • One of the services offered by PROESA is organizing job fairs for a specific sector or company. Also provides a list of human resource developers in El Salvador to assist companies in finding and hiring of its human resources.
  • In El Salvador by law, all companies with more than 10 employees contribute 1% of employees' salaries to a national fund for training called INSAFORP (Vocational Training Institute). PROESA helps companies during the procedure applicable to such funds for the training of their workers.
  • Also from this year, PROESA will offer as an investment incentive, a monetary fund to be allocated for the training of the workforce of foreign companies that invest in El Salvador in strategic sectors.
Loan guarantees, cheap loans or financeMore [+]Less [-]
  • El Salvador has a Development Bank called BMI (Multisectoral Investment Bank) which provides medium and long term funds awarded through local financial institutions.
Exemptions from regulations
Target sectorsMore [+]Less [-]
  1. Food and Beverage
  2. Infrastructure, Logistics and Tourism
  3. Manufacture
  4. Services
Sectors specific incentivesMore [+]Less [-]

SERVICES

The International Services Law

  • Exemption of Income Tax and VAT
  • Exemption of tariffs and custom duties in the introduction goods required to perform the promoted activity
  • Exemption of municipal taxes
  • Applies for logistics & distribution centers, call centers, BPOs, software development, research and development, as well as reparation and maintenance of aircrafts, cargo ships and cruisers.

MANUFACTURE

The Free Zone Law

  • Exemption of Income Tax and VAT
  • Exemption of tariffs and custom duties in the introduction goods required to perform the promoted activity
  • Full exemption of municipal taxes

TOURISM

The Tourism Law

  • Exemption of income tax for a period of 10 years
  • Import duty tariffs and VAT exemptions for the import of goods
  • Exemption of taxes in real estate transfers, for the acquisition of real estate to be used in the project
  • Partial exemption from municipal taxes (up to 50%) for a period of 5 years, starting with the fiscal year in which a business starts operations

Sponsorship

If you are the authorised promotions agency for El Salvador and would like to have your location highlighted on fDi Atlas, you can contact our sales team on + 44 (0) 207 775 6667 or contact us here.