Investors Guide El Salvador 2023

Investor’s Guide 2023 1
01. Why El Salvador? 4

El Salvador at a glance 6
General information 6
Economy 7
Demographics 9
Young, productive, and committed workforce 10
Good labor climate 11
Availability of technicians and professionals 12
Specialized Technical education 12
Government support for on-the-job training 13
Proximity to key markets 14
Strategic Location 14
Preferential Access to International Markets 15
Cost-efficient location 16
Monetary stability 17
Enabling business environment 18
Protection of investments 20
Attractive tax incentives 20
Modern infrastructure 21
Efficient Highway network 22
Modern airports 22
Versatile ports 22
Committed to sustainable development and digital transformation 23
A strong bet on renewable energy 23
Accelerated digitalization of processes 24
02. Investment opportunities 26
Tourism 28
BTC, Technology and Services 29
Bitcoin 29
Digital technologies and business processes 30
Startups 31
Logistics 32
Energy 33
Manufacturing, textile and apparel 34
Light manufacturing 34
Medical Devices 35
Textile and apparel 37
Pharmaceuticals 38
Agribusiness 39
03. Doing business in El Salvador 40
Establishing a company 41
Tax system 43
Income tax 43
Branch profits tax 43
2 Investor’s Guide 2023
Dividend Tax 43
Tax on Transfers of Real Estate Property 43
Value Added Tax (IVA for its acronym in Spanish) 43
Other Taxes 44
Incentives 45
Free Zones Law 45
International Services Law 48
Renewable Energy Incentives Law 49
Law of Legal Stability for investments 50
Free trade zones and industrial parks 51
Operational costs 52
Electricity 52
Water 52
Telecommunications 53
Industrial spaces 54
Wages 54
Labor market 55
Regulations 55
Access to labor 58
04. Living in El Salvador 59
Residence and work permits 60
Quality of life 61
Security 62
Education 63
Healthcare services 65
Financial services 65
Energy 66
Telecommunications 67
Urban mobility 68
05. Visit El Salvador 69
Travel information 70
Entry requirements 71
Category A: Visa Exempt 71
Category B: Consular Visa or No Consultation 71
Category C: Visa Consulted 71
Destinations 72
Surf city 73
Towns and cities 73
Nature and adventure 73
Archaeological parks 73
06. Investment services 74
Services for investors 75
Get in touch 77

Why
01 El Salvador?

Young, productive, and committed workforce
Investors certify that Salvadoran labor force is
world-famous for its efficiency and work e
thic. We
are a predominantly young and highly productive
location with 54% of labor force under 40 years.
Proximity to key markets

El Salvador is a platform to export to major
markets. We have multiple trade agreements
with p
referential access to more than 1.2 billion
consumers in 42 countries worldwide.
Cost-effective location
The Financial Times’ investment journal fDi
Intelligence has classified us as the most
cost-effective location in the Americas. The
country has one of the lowest inflation rates in
Latin America.
Enabling business environment

El Salvador offers monetary stability with the USD
Dollar as legal tender, a solid legal framework for
the protection of investments, and attractive tax
incentives.
Modern infrastructure
The Global Competitiveness Report p laces
El S alvador among the nations with the best
infrastructure in the region. In Central America, we
rank in the 1st place in road connectivity.
Committed to sustainable development and

digital transformation
El Salvador is among the top 10 leaders in
renewable energy in the region: about 80% of total
generation. We are also taking giant steps towards
simplification and digitalization of processes.

El Salvador at a glance
El Salvador
General information
Official name: Republic of El Salvador Currency: US dollar (since 2001),

(Spanish: República de El Salvador) Bitcoin (since september 2021)
Capital city: San Salvador Official language: Spanish
Total area: 8,123 square miles Time zone: Central Standard

(21,041 square kilometers) Time (CST), UTC -6.

Economy
GDP (billion USD): GDP per capita (USD): FDI stock: USD$ 10.6
$28.7 (2021) $4,542 (2021) billion (III trim. 2022).
Graph 1: GDP per economic activity (2021)

Source: Own elaboration with data from the Central Bank of El Salvador (BCR).
*Includes: administrative services, health and social assistance, professional,

scientific, and technical activities and accommodation and catering services.

Graph 2: FDI by sector (III trim. 2022)
Graph 3: FDI by source country (III trim. 2022), USD million


Demographics
Population: 6.3 million
53.3% 46.7%
are women are men
Labor force: 2.9 million1
41.7% 58.3%
are women are men
Employment
Underemployment
Underemployment 37.6%
Unemployment 6.3%
0 5 10 15 20 25 30 35 40
1 Population over 16 years of age that is occupied or seeking employment.

Young, productive and
committed workforce
Investors certify that Salvadoran labor force is world-famous for its i ndustriousness,
efficiency, and work ethic. El Salvador’s labor force is composed of 2.9 million
people2, 54% of whom is 40 years or younger. Thus, it offers a highly p roductive
labor force capable of developing new skills in a short period of time. The c ountry’s
labor force is qualified as ideal for manufacturing, agro-industrial and service
activities. Furthermore, there is a growing population with higher education that
can face the challenges of a modern and globalized economy.
Labor force 54.3% under

2.9 million people 40 years
Some testimonials of investors that have chosen our country:
Roberto Kriete
President of the board of directors of
AEROMAN (Aeronautics sector)
We now say to the world that the Salvadoran

human capital is c
apable of servicing aircraft
maintenance for world renowned airlines.
Our people have made this dream p ossible.
They are the main pillar and heart of our
company and their c ommitment to quality
is what makes us big and get farther.
2 Economically active population: Defined as the population over 16 years of age that is occupied
or seeking employment.

Malvina Romero
General Manager of Biogalenic
(Pharmaceutical sector)
We chose to invest in El S alvador to be able to

repay the trust and legal s ecurity it offers. But
the most important is our Salvadorean human
capital for being faithful and c ommitted.
Logan McCune
People and Culture Manager
of Rulesware (ITO)
Almost a decade ago when we were considering

countries around the world, we discovered El
Salvador’s potential. We have been very pleased

with the work ethic, communication skills, formal
training, and soft skills of our Salvadoran employees.
Good labor climate

El Salvador’s Labor Code b alances the protection and rights of workers with the
flexibility that employers require to manage their businesses and create jobs. El
Salvador is characterized for having good employer-worker relationships. It has
not been affected by significant disputes or strikes.

Availability of technicians and professionals
El Salvador has a good base of t echnicians and professionals ready to join the c
ountry’s
productive sectors.
22,000 Technicians and 21% Share of Engineering

professionals join the
and technology graduates
labor force every year
Specialized technical education

Investors can satisfy their demand of technicians through a pool of institutes s pecialized
in technical education, such as:
·MEGATEC (Gradual Education L

earning ·Escuela Especializada en Ingeniería/
Model of Technical and Technological ITCA-FEPADE (Specialized Engineering
Education), with
locations in Santa School), with regional centers in Santa
Ana, Cabañas, Zacatecoluca, La Ana and San Miguel.
Unión, Chalatenango, and Sonsonate.
·Universidad Don Bosco/UDB (Don
·Escuela Superior Franciscana Bosco University).
Especializada / AGAPE
(Specialized
Superior Franciscan School). ·Escuela Nacional de Agricultura/ENA
(National School for Agriculture).
Some of the technical careers available linked to FDI growth sectors are:
Aeronautical Maintenance, Agroindustry Gastronomy, Global Logistics, Industrial

with Specialization in Fruits, Vegetables Engineering, Mechanical Engineering,
and Grains, Agronomy, Aquaculture, Medicine, Nursing, Prosthetics, Bracing
Biomedical, Civil Engineering,
Dental and Supports, Port Management and
Surgery,
Electronics, Customs and Operation, Software Development,
Logistics,
Food Processing and Tourism and Tourism Development and
Preparation, Management, among others.

El Salvador has seen significant improvements in English proficiency and is promoting
IT skills
a moderate level of english proficiency according to the Englih

Ranked at
Proficiency Index 2022
+1 million computers and tablets delivered to students nationwide
El Salvador’s results in the English Proficiency Index (EPI)*

Source: EF, EPI. Based on test results of 2m adults in 112 contries & regions. Scores based on a
800-point scale.
Moderate Proficiency
Moderate Proficiency 519
508
Low Proficiency
483
2020 2021 2021

*The world’s largest ranking of countries by English skills
Government support for

on-the-job training
Companies that need to train their satisfy the needs for qualified human
active workers can use the aid of the resources required by the country’s
Salvadoran Institute for Professional private sector. Multiple investors have
Formation (INSAFORP, for its found in INSAFORP an important tool
acronym in Spanish). An autonomous for financing, partially or totally, their
governmental agency that seeks to employees’ professional development.

Proximity to key markets
The strategic location of El Salvador in the heart of the Americas, as well
as its broad trade agreement network, makes it the ideal location to
operate export-oriented companies of diversity of goods and services.

Strategic Location
It takes a short flight (2-5 hours) from proximity to main maritime trade
El Salvador’s International Airport to routes. Likewise, in the context of
reach major cities in North and South international services, El Salvador is on
America. El Salvador’s International U.S. Central Standard Time (CST, GMT
Airport serves as the regional hub of -6). This makes El Salvador’s location
Avianca Airlines. Cargo transportation ideal for offshore business services.
also benefits by the country’s

Preferential Access to
International Markets
El Salvador is an export platform to Together they represent a potential
reach major markets thanks to the market of 1.2 billion consumers. These
broad network of trade agreements agreements provide flexible rules of
with 42 countries in the Americas, origin, and the elimination or major
Europe, and Asia. reductions in import tariffs.
European
Union
United
Kingdom
United States South

Korea
Cuba
Mexico
Dominican
Central America Republic
Panama
El Salvador Colombia
CACM: Central American

Ecuador Common Market
Chile
CACM: Central American FTP: Free Trade Agreement
Common Market PSA: Partial Scope Agreement
CACM: Central American FTP: Free Trade Agreement AA: Association Agreement
Common Market PSA: Partial Scope Agreement
FTP: Free Trade Agreement AA: Association Agreement

We PSA:
offer preferential
Partial access to a potential market of 1.2 billion c
Scope Agreement onsumers in 42
countries around the world.
AA: Association Agreement

Cost-efficient location
El Salvador is among the most cost-competitive countries to set up and operate
a business in the region. The Financial Times’ investment journal fDi Intelligence
its Cities of the Future 2021/22 edition classified San Salvador as the most
cost-effective location in the Americas, according to the rank of m
edium-sized
cities.
Top 10 mid-sized #1 in cost effectiveness in the Americas

American cities of according to The Financial Times’ FDI
the future 2021/22 Intelligence (medium-sized cities)
Cost effectiveness ranking
Rank City State
1 San Salvador San Salvador
2 Cuautitlan Izcalli Mexico (state)
3 Celaya Guanajuato
4 Reynosa Tamaulipas
5 Irapuato Guanajuato
6 São José dos Campos São Paulo
7 Chihuahua Chihuahua
8 Jundiai São Paulo
9 San José San José
10 Saltillo Coahuila

Price stability
One of the most important policies single-digit inflation rates, being
implemented to open the c ountry’s one of the countries with the lowest
economy to world trade and inflation levels in Latin America.
investment is the adoption of the Likewise, the elimination of foreign
U.S. dollar as legal tender. As a exchange risk has provided greater
result, El Salvador has maintained certainty for investors.
Average Inflation rate (%, 2018-2022)

Source: International Monetary Fund.
Ecuador 0.6
Panama 0.9
Bolivia 1.8
El Salvador 2.3
Costa Rica 3.1
Peru 3.3
Guatemala 4.3
Colombia 4.5
Paraguay 4.6
Chile 4.8
Honduras 5.1
Mexico 5.1
Dominican R. 5.3
Brazil 5.7
Nicaragua 5.8
Uruguay 8.4
Note: Argentina and Venezuela are excluded for their high rates.

Enabling business
environment
El Salvador is an export-oriented free-market economy. The policies implemented

by the Government of El Salvador have provided a suitable environment for
investment. As a result, many important multinational companies have chosen to
invest in El Salvador:
Chinese
Taipei
Canada South Korea
Chinese
Taipei
Europe
Mexico
Mexico
Central
America
Japan
United States
India
Brazil
Australia
Australia
Uruguay
Peru
Colombia

We offer our business partners:
a. Monetary stability with the USD Dollar as legal tender
b. Solid legal framework for the protection of investments
c. Attractive tax incentives
Ease of doing business in El Salvador
The US dollar Bitcoin as Access to local

as legal tender legal tender financing
Legal stability
Freedom to transfer Equal treatment to
for investments
funds abroad foreign investors

Protection of investments
El Salvador is committed to p romoting investment and developing long term
relationships with Investors. The Investment Law seeks to e ncourage and protect
private investment and, more specifically, Foreign Direct Investment, offering the
following benefits
01 Procedure streamlining.
Equal treatment to all investors (foreign and local investors will have
the same rights and obligations. Discriminatory measures that hinder
02 the establishment, administration, use, extension, sale, and liquidation
of investments may not be used against them).
03 Freedom to invest.
Transfer of funds abroad (foreign investors are guaranteed the right to

04 transfer funds abroad, without delay and with the freedom to convert
currency through the banking system).
Protection of property and legal certainty in accordance with the

05 Constitution, foreign and national investors are guaranteed protection
of their property and the right to the free disposition of their assets.
Attractive tax incentives

The country’s legal framework raw materials, and other articles
provides full exemption from income used in the production of goods and
tax, municipal taxes, taxes on transfers services. For more information see

of real estate property, as well as section: Doing Business in El S
alvador
customs duties and taxes on the
| Incentives
import of Machinery, equipment,

Modern infrastructure
The Global Competitiveness Report 2019 of the World Economic Forum places El
Salvador among the nations with the best infrastructure in the region. In Central
America, El Salvador ranks in the 1st place in road connectivity index and 2nd place
in infrastructure.
Port of
Santo Tomás
de Castilla
Usulutan

Efficient Highway network Modern airports
El Salvador enjoys a modern El Salvador’s International Airport
and efficient road network that (AIES– SOARG) stands out as an

interconnects to the rest of the region. important regional hub and top-class
Its main highways are: P anamerican maintenance center for commercial

Highway, Litoral (Coastal) Highway aircrafts. It is strategically located at
and Longitudinal
del Norte just 40 minutes away from the capital
(North Longitudinal) Highway. city.
For more information about the

airlines operating in the airport, as well
Versatile ports as direct routes, see section: “Travel
El Salvador has a versatile port Information”. The Pacific A irport is part
infrastructure able to respond to the of the G overnment’s strategic projects
needs of freight services effectively. to turn the east of the country into a
The Port of Acajutla is the main development pole and a w orld-class
commercial maritime terminal in
tourist destination, along with other
the country and it is currently under major projects such as the Pacific
modernization, as a priority to Train, the shipyard in the Port of La
increase logistics opportunities. Union, Bitcoin City, among others.

Committed to sustainable development
and digital transformation
A strong bet on
renewable energy
El Salvador is progressing to a broader El Salvador is among the top 10 leaders
diversification of the energy m atrix; in renewable energy generation in the
this is the result of i nternational region. As can be seen in the following
tenders for renewable energy supply. paragraph, around 76% of the total
As a result, new projects have generation has its origins in renewable
been developed as of natural gas, sources.
photovoltaic energy, and wind- based
generation.
Generation by resource (% share 2022)
2.1%
Wind
7.9%
Bunker
8.5%
Solar
33.7%
Hydroelectric 8.6%
Biomas
16.1%
LNG
23%
Geothermal

Energy generation from renewable sources (% share)
Source: sieLAC - OLADE, 2021
El Salvador is in the 3rd position out of 27 countries in Latin America and the
Caribbean and in the 2nd position in Central America regarding energy generation
of renewable origins.
Accelerated digitalization of processes

El Salvador is taking giant steps towards simplification and digitalization of
processes to reduce bureaucracy and corruption.
Substantial efforts to simplify and digitalize procedures in public administration
+395 Simplified procedures
98 Digitized 100% online
59% Overall time reduction
153 Procedures with resolution in one business day or less

This has contributed to positioning the country, as the one with the lowest bribery
rate to expedite government procedures in Latin America, as can be seen in the
following graphic:
Source: CID Gallup. Answer to the question: To what extent do you think bribery speeds up
procedures with government agencies? Percent of respondents.

Investment
02 opportunities

Explore investment opportunities in El Salvador
Tourism
BTC,
Technology
and Services
Energy
Manufacturing,
Textile and
Apparel
Chemical
Pharmaceutical
Agribusiness

Tourism
Rodrigo Velásquez Mobile: +503 7140-7777

Investment Specialist Email: [email protected]
El Salvador is a country that extends of the best for surfing, together with
from a coastal plain to a volcanic the "Surf City" strategy have
positioned
upland in the interior, bordering the the country as a key place for world
North Pacific Ocean to the south and surfing. surfing. El Salvador has

southwest, with Guatemala to the friendly and warm people with high
north and northwest and Honduras service-vocation, ideal for tourism
to the north northeast. The amazing related operations.
waves recognized worldwide as one
Key facts
2.5 M Visitor arrivals (2022)
15.7% Growth of jobs in the tourism sector (Jan-Jun 2022/2021)
8.3% Contribution of the tourism sector to the GPD (Q3 2022)
Advantages of investing in El Salvador

1. Solid and growing touristic d emand. Annually, El Salvador welcomes m
ore than
2.5 million visitors.
2. Air traffic hub with over 812 weekly arrivals and departures.
3. Service-oriented workforce.
4. Differentiating value of waves for surf tourism.
5. Safe destination seal by the World Travel and Tourism Council.
Investment opportunities
1. Hotels/Boutique hotels
2. Convention centers
3. Spas and wellness centers
4. City projects
5. Theme parks and restaurants

BTC, Technology and services
Jessica Bukele Mobile: +503 7883-5156

Bitcoin
In El Salvador, the Bitcoin Law e
ntered operations in the country related
into force in September 2021. This to Bitcoin and other sectors such
positions us as the first country in the as: tourism, real estate,
technology,
world to adopt the bitcoin as legal mining and energy, positioning El

tender. This has generated interest Salvador at the forefront of financial
from foreign investors to establish technology.
Key facts
Country in the world to adopt the bitcoin as legal tender to promote
1st financial inclusion and investment
+4M Users of government-backed BTC wallet
54% of total population uses the internet

1. El Salvador has a huge potential market for digital wallets and other services that
promote financial inclusion: 70% of citizens remain unbanked.
2. The level of technology and communications adoption in the country could trigger
the development of operations related to financial technology: 68% of adults have a
smartphone with internet access (According to a survey conducted by BCR).
3. There is a growing knowledge of cryptocurrency ecosystem in the country.
According to a survey conducted by Central Bank, 81% of respondents have heard
about cryptocurrencies, 65% know about digital wallets and among the people who
have used them, they highlighted among their advantages the speed of transactions,
trust and lower costs than traditional channels.
1. Digital Wallets
2. Exchange Bureau
3. Bitcoin Custody
4. Bitcoin service providers
5. Bitcoin City

Digital technologies and
business processes
The Business Processes sector in in our country a strategic partner.
El Salvador has experienced an In turn, these companies provide
unprecedented growth since its
services to other multinationals from
beginning. The Digital Technologies
El Salvador with exceptional results in
sector has also begun its steep growth key performance indicators (KPIs) of
curve in El Salvador, where companies the industry.
of international prestige have found
Key facts
37,000 Direct Jobs in call centers, BPO and IT (2021 est.)
USD487 M Call center exports (2021)
21% Call center export growth (2021 vs 2020)

1. Outstanding Human Talent with exceptional performance in industry key
performance indicators.
2. Neutral English and Spanish accents, as well as cultural affinity with major
markets such as the United States and Latin America.
3. Generous tax incentives.
4. Fast learning curve and loyalty.
5. Excellent Telecommunications Platform.
1. Contact centers: product sales, order taking, cross sales & up sales, customer
relationship management, technical support, customer service, customer
prospecting, technical support/warranty, customer acquisition and retention,

inbound and outbound calling, appointment scheduling.
2. Business Processing Services: Data capturing, General ledger a
ccounting, Order
processing, Bank reconciliations, Transaction processing, Fixed asset a
ccounting,
Data reporting, Marketing surveys & research, Inventory accounting, Payroll
processing.
3. Information Technology Services: web development, mobile development, UX/
UI design, DevOps, quality assurance.

Startups
El Salvador’s Startup Ecosystem is Besides that, there are funding entities
showing a positive momentum. offering venture capital and angel
Big private players along with the investment, as well as a whole growing
Government of El Salvador had united support system, including training,
under one initiative with the purpose incubation, acceleration, and visibility
of promoting actions for growth and programs for entrepreneurs.
acceleration of El Salvador’s startup
and innovation ecosystem.
Key facts
+40 startups
Position 16 out of 132 countries worldwide with higher % of firms offering

formal training
Position 39 out of 132 countries worldwide with higher % of High-tech imports

1. The country is advancing toward becoming an emergent location for startups.
2. There are already successful cases of companies that were born from an idea
and today are leading startups based in El Salvador.
3. Some of the strengths of El Salvador, according to the Global Innovation Index
2022, are the high level of firms offering formal training as well as the level of
high-tech imports as percentage of total trade.
1. Incubators
2. Accelerators
3. Investment funds
4. Innovative business ideas

Logistics
El Salvador has the conditions to achievements already reached is the
offer a quick response to the market, awarding of the expansion of the
ideal attribute to be the logistics hub AIES-SOARG air cargo terminal. The
for international companies. It offers Public Private Partnership of the C
argo
the possibility to capture cargo from Terminal is focused on
increasing
diverse origins: regional (imports and efficiency in the handling of import

exports), transshipment, transit and that and export cargo, which will greatly
generated by offshore m anufacturing enhance El Salvador as an aeronautical
companies. One of the main and logistics hub in the region.
Key facts
USD 440 M Exports of transportation services (2021)
+29,000 Total jobs in the logistics sector (2022)
USD 261.4 M of FDI stock in the transportation sector (Q3 2022)

1. Strategic location for regional logistics hub.
2. The Government continues to bet on the modernization of borders. El Salvador
is moving forward on its way to becoming a regional leader in trade facilitation.
3. Tax incentives that can be obtained by being benefited by one of the two
available laws that are attached to the economic activity:
3.1 Free Zones Law. Commercialization of industrial goods produced in free
zones or inward processing warehouses of products that have not undergone
a transformation process by the marketer.
3.2 International Services Law. National distribution and international logistics
operations to third parties or indirect users. One of the main advantages is that
the logistics company is authorized to fraction, select and pack merchandise
for third parties.
1. Logistics center for supplying extra-regional, intra-regional and domestic trade.
2. Product distribution service.
3. Package consolidation service with a variety of products.
4. Manage cargo from diverse origins: regional (imports and exports), transshipment,
transit and cargo generated by offshore manufacturing and logistics operators.

Energy
Karen Portillo Mobile: +503 7071-7031

El Salvador provides an e xcellent ountries of Central America (SIEPAC).

C
opportunity for investment in the
We have a national energy market with
energy sector, with clear rules and
a dynamism driven by international
transparent processes which
allow and local companies in the generation,
stability in rates, which positions distribution, and c ommercialization of
us as one of the most competitive electricity, a public-owned transmission
markets in Central America with
company, and an energy policy with a
thriving participation in the
regional
vision for the future and the adequate
electricity market (MER), born within
the framework of the Electrical institutional infrastructure for the

Interconnection System of the
development of the sector.
Key facts
6,630 GWh Energy demand (2022)
1.067 MW Maximum power demand (2022)
2,461 MW Installed capacity (2022)
Advantages of Investing in El Salvador

1. Constant energy demand growth.
2. Strong commitment of the country to diversify the energy matrix.
3. Developing generation potential of wind, geothermal, small hydroelectric p ower
plants, biomass, biogas, and solar photovoltaic sources.
4. Renewable Energy Incentives Law that offers attractive tax incentives to projects
that generate electricity with renewable resources, up to 10 years.
5. The country’s legal framework allows companies to generate their own energy
and sell their surplus in the electricity market.
Investment Opportunities
1. Power supply generation for the spot market where the nontraditional renewable
energy sources (solar and wind) have supply priority.
2. Bilateral contracts directly agreed between generator and distributor.
3. Distributed generation projects for industrial use.

Manufacturing, textile and apparel
Emilio Márquez
Investment specialist - Light Manufacturing and Medical Devices
Mobile: +503 7071-7029
Email: [email protected]
Andrea Pérez
Investment specialist - Textile and apparel
Mobile: +503 7069-5450
Email: [email protected]
Light manufacturing
El Salvador has a mature plastics and pportunities for companies in the
o
textile and apparel industries, with auto parts and electronic components
installed capacity to offer o
utsourcing sectors that want to establish
to international companies. In the metal manufacturing plants to export their
mechanics sector, there are computer products to the United States, Canada,
numerical control
w orkshops, Mexico, Central America and the
capable
of sourcing precision Caribbean.
parts. El Salvador offers investment
Key facts
Production efficiency rates higher than 90% in the Light Manufacturing sector
Turnover rates lower than 10%
10th global provider of electrical capacitors to the U.S.

1. Strategic location in the center of the Americas to be used as a logistics platform
2. Installed capacity in key complementary industries:
2.1 The textile and apparel sector is one of the most important in the country
and includes providers of yarn and fabric, as well as apparel companies.
2.2 El Salvador has a mature plastics industry. Currently, many of the plastic
companies have installed capacity to offer outsourcing or even make joint
ventures with international companies.
2.3 In the metal mechanics sector, there are companies with computer
numerical control (CNC) workshops, capable of sourcing precision parts.
3. Low operating costs: operating an auto parts manufacturing plant in El S alvador
is about 33% cheaper than in Mexico and up to 85% cheaper than in the U.S.
according to fDi Benchmark, a service from the Financial Times Limited 2022.
4. Highly qualified human capital.
1. Auto parts: automotive harnesses, car seats, vehicle security systems (airbags,
seat belts) and automotive sensors.
2. Electronic components: tantalum and ceramic capacitors, transistors,
resistors, etc.
3. Manufacturing, assemblage, and refurbishment.
Medical Devices
International medical devices located at Don Bosco University,
manufacturers will find in El Salvador with more than 20 years’ experience
a strategic partner that provides an teaching biomedical engineering, as
export platform to North America, well as major and technical education
Central America, and the C aribbean. in prostheses and orthosis. During the
Furthermore, El Salvador has the pandemic, the industry expanded to
first training center in Latin America unusual levels as a result of increased
certified by the International Society manufacturing of personal protection
for Prosthetics and Orthotics (ISPO) equipment.

Key facts
USD 7.3 M Exports of medical devices (2021)
Training center in Latin America certified by the International

1st
Society for Prosthetics and Orthotics (ISPO)
50% Lower costs than other locations in the region

1. Speed of response and geographical proximity to markets that are looking to
minimize their dependency on Asia for medical supplies.
2. The country’s products reach markets such as the United States, the rest of
Central America and Europe: 40% of medical devices exports of El Salvador are
destined to the United States.
3. El Salvador has an important and consolidated pharmaceutical industry and a
regulatory body with category three of Good Manufacturing Practices according
to the WHO.
4. Low operating costs: operating a medical device manufacturing plant in El
Salvador is about 50% cheaper than other referent locations, like Costa Rica,
according to fDi Benchmark, a service from the Financial Times Limited 2022.
1. Medical – hospital supplies: disposable laboratory and diagnostic equipment,
hospital lingerie and reusable and disposable clothing, wound treatment supplies.
2. Orthopedic Products: Prosthesis, Orthosis, Internal fixing devices.
3. Hospital furniture.
4. Health and hygiene products: Wipes, surgical covers, blankets, masks, hats,
hospital bed products, surgical hosiery, surgical gloves, sports medicine products,
compression garments, exchanges.
5. Surgical sutures.
6. Mastectomy and prostheses bras and swimsuits.
7. Lactation accessories.
8. Stoma/ostomy and urology care, such as: ostomy bags and ostomy accessories
9. Consumables and accessories: dialysis bags, drainage systems and bags.
10. Cables, connectors, harnesses, sensors for medical devices.
11. Packaging supplies (plastic containers, boxes, bags, film) to supply the region.

Textile and apparel
El Salvador is the only country that has the production of fibers, yarns and
developed a full synthetic cluster in fabrics manufacturing, product de-
Central America. The textile and ap- sign, garment manufacturing and the
parel sector is one of the main engines associated logistics, besides offering
of El Salvador’s development, with a countless opportunities to enter new
value chain that has consolidated and businesses in the upper and lower end
integrated towards more added v alue of the value chain and related activities.
products. The dynamic process of Currently, El Salvador exports textiles
vertical integration of the industry has and apparel to more than 50 countries
incorporated all production activities and represents 40% of total exports.
of the textile and apparel chain, from
Key facts
US$2.8 Billion Total exports of textile and apparel
+80 Export destinations (2022)
15th International provider of apparel to the U.S.

1. It is the only country that has developed a full synthetic cluster in Central America.
2. Speed to market and geographic proximity.
3. The “Yarn Forward” rule of origin granted by the CAFTA-DR, allows free a ccess for
qualifying textile and apparel products made using U.S. and/or Central A merica-DR
yarns and fabrics (nylon, polyester, microfiber, among others –products paying a 32%
tariff when imported from Asia through the U.S.).
4. El Salvador is on the position 5th among the most cost-competitive locations to
operate a textile and apparel plant in the Americas (ranking out of 20 locations
in the region, source: fDi Benchmark, a service from the Financial Times Limited
2022).
1. Yarns and fabrics manufacturing (Natural and synthetic).
2. Knitted garments with accessories and embellishments (embroidery, screen
printing, heat transfers, etc.), athletic wear, sportswear, performance wear and
swimwear manufacturing.
3. Garments manufacturing included in the “Cut and Assemble” Rule of Origin
category: bras, girl dresses, boxer shorts, sleepwear, luggage, among others.

Pharmaceuticals
Maricela Ibarra Mobile: +503 7071-7044

Pharmaceuticals specialist Email: [email protected]
The pharmaceutical industry in El Panama, Peru, United States, among

Salvador is considered one of the main others. El Salvador is the first country
productive branches with the greatest in the Central American region with
use of state-of-the-art technologies the good manufacturing practices
and high specialized employment, also certification according to the WHO,
characterized internationally as one of complying with international regula-
the countries with the greatest diversity tions and standards. The industry in El
of products of the highest quality. The Salvador has the versatility for produc-
medicines manufactured in the coun- tion diversification towards different
try are demanded for their therapeu- therapeutic lines of the manufacture
tic efficacy and quality in: Central of OTC medicines and prescription
America and the Caribbean, Mexico, drugs.
Key facts
US 169.4 M Pharmaceutical exports (2022)
+35 Export destinations (2022)
37 Certified pharmaceutical laboratories

1. GMP certified laboratories under WHO Report 32.
2. Experienced pharmaceutical industry with high quality products and export experience.
3. Skilled chemical-pharma-biology workforce with college degrees and
technical training skills.
4. Competitive labor cost.
1. Establish a pharmaceutical laboratory for the manufacturing of generics, v accines,
medicines for chronic diseases, multivitamins, psychotropics, among others.
2. Services in pharmacovigilance, review of protocols, registration process, label
modifications, advertising, web services among others.
3. Exclusive logistics hub for the pharmaceutical industry for Central America and
the Caribbean.
4. Contract manufacturing.
5. Industry suppliers for the region.

Agribusiness
Álvaro Moreno Mobile: +503 7071-7041

Agribusiness sector specialist Email: [email protected]
We offer good conditions to develop market niches that go beyond the

agribusinesses due to its location in the traditional agricultural industries.
tropics and diversity of m
icro-climates. Additionally, its proximity to high
El Salvador offers an ideal location consumption markets facilitates the

for the production and processing export of these products.
of food, as well as to address specific
Key facts
USD 1.38 B Exports of the agroindustry, food and beverages sector (2022)
19% Share of total exports (2022)
16.8% Export growth (2022)

1. Suitable climatic (temperature and altitude) and soil conditions to grow ornamental
plants and fruits.
2. Availability of water resources.
3. Important fiscal incentives provided by the Free Zones Law, for the following
products: Maritime species, Greenhouse and laboratory flora species, reptiles, and
amphibians.
4. Complimentary industries such as containers, packaging, and process
technologies, among others.
5. Proximity to the biggest consumer market for agroindustry products (EE.UU).
1. Ornamental plants: El Salvador has the right ecological and climate conditions
for year- round harvest, meeting the supply-demand needs. There are opportunity
niches of rooted cuttings to be produced at destination and high-value tropical
flowers.
2. Aquaculture: El Salvador enjoys biodiversity and stock of marine species,
availability of industrial and artisan fishing fleet, appropriate climate for aquaculture
and other advantages that offer opportunities for the extraction and processing
of non-traditional fishery products and of large pelagic, as well as continental and
marine aquaculture.
3. Crops: The main advantage of the country are the microclimates to produce
crops all year round. Likewise, it has the capacity to develop organic crops.

Doing business
03 in El Salvador

Establishing a company
As part of the improvements to the business climate, El Salvador has created a one-
stop channel to establish companies and get the business registration number.
These steps are done online at www.miempresa.gob.sv, making El Salvador part
of the few countries worldwide that offer a virtual one-stop office to establish a
company.
Step by Step Description of Mandatory Procedures to establish a Legal

Entity in El Salvador
1 Prepare articles of incorporation before a public notary*
2 Registration of articles of incorporation
3 Company and establishment license
4 Tax identification number (NIT) registration

Registration of company’s taxpayer registration number - Value Added Tax-
5
(NRC/IVA)
6 Opening balance sheet registration
7 Employer identification number registration at ISSS
8 Workplace Registration
9 Employer registration at the pension fund administrators (AFP)
10 Registration of company’s internal work rules
Foreign capital registration at the ministry of economy’s national

11
investment office (ONI)*
Company registration solvency at the directorate - General directorate of

12
statistics and census (DIGESTYC)
13 * Company registration at the corresponding mayor’s office3
* This step must be made in person at the corresponding institution.
3 If your company is located in San Salvador or Santa Ana, this step can be done online www.
miempresa.gob.sv. Otherwise, it will have to be done at the corresponding Mayor’s Office.

The steps that can be done through this site are:
01 Company’s registration at the Registry of Commerce.
02 Company and establishment license.
03 Tax identification number (NIT) registration.
04 Taxpayer registration number (NRC/VAT).
Serial numbers emission by the Ministry of Finance for: Invoices, tax

05 credit receipts, credit note, debit note, export invoice, simplified sales
invoice, settlement receipt, settling accounting document.
06 Company or establishment registration at Ministry of Labor.
07 Employer registration number at ISSS.
08 Employer registration at the pension fund administrator (AFP).
09 Company’s registration at the Mayor’s Office (Santa Ana or San S

alvador)
Note: El Salvador’s legal framework provides generous tax incentives, including full exemption
from income tax, municipal taxes, taxes on transfers of real-estate property, as well as customs
duties and taxes on the import of machinery, equipment, raw materials and other articles used in
the production of goods and services. For more information about tax incentives, see section III of
this guide, “Legal Framework and Incentives”.

Tax system
Information about the Salvadoran tax system relevant to setting up and operating
a business in El Salvador is shown below. Additional information regarding tax pay-
ments is available on the website: www.tramites.gob.sv
Income tax Branch profits tax
A 30% tax rate is applied over taxable Branches of foreign companies are
income. For legal entities with a subject to the same tax rates as
taxable income less than or equal to Salvadoran companies.
USD 150,000.00, a reduced tax rate of
25% is applied.
Dividend Tax Tax on Transfers of Real

Estate Property
Dividends paid or credited to share- The transfer of real estate is subject to

holders (individuals or legal entities) a tax rate of 3% applicable on amounts
are subject to a 5% income tax rate. exceeding USD $28,571.43.
Value Added Tax (IVA for

its acronym in Spanish)
Services and goods are subject to a 13% value added tax. The following items are
exempt from IVA: public health, home rentals, education, state titles, public water,
public transportation, pension funds and Public Lottery.

Other Taxes
Municipal taxes:
a.
Taxes are paid according to a table
established by each municipality

based on the company’s total assets.
For example, in San Salvador rates are
determined by the company´s activity
(industrial, commercial, or other).
b.
Company and Establishment License:

All industrial and commercial businesses are
required to have an annual license to operate.
This tax is paid based on the company’s total
assets according to the following rates:
•From USD $2,000.00 to USD $57,150.00

pays USD $91.43
•From USD $57,151.00 to USD $114,286.00
pays USD $137.14
•From USD $114,287.00 to USD $228,572.00
pays USD $228.57
If assets exceed USD $228,572.00, USD $11.43

will be paid for every USD $100,000.00, up to
a limit of USD $11,428.57.

Incentives
Free Zones Law

Offers generous tax incentives or merchandise required by
to e xport-oriented manufacturing companies are imported free of taxes
companies located in Free Zones or and tariffs. If a company – for t echnical
Warehouses for Inward Processing reasons– is unable to operate inside
(DPA, for its acronym in Spanish). Free a free zone, it can be authorized to
Zones are industrial parks considered operate outside as a Warehouse for
outside the national territory for fiscal Inward Processing (DPA) and enjoy all
purposes, and thus raw material the benefits of this law.
Eligible activities5:
1. The production, assembly or maquila, manufacture, processing, t ransformation,
or commercialization of industrial goods included in Chapter 3 and Chapters 25
onwards of the Harmonized System.
2. Fishing of maritime species to undergo industrial transformation, including
preparation, canning, derivatives, or sub products, as well as their respective
processing and commercialization.
3. Cultivation, processing, and commercialization of flora species grown in
protected structures in greenhouses and laboratories.
4. Breeding and commercialization of amphibian and reptile species in
captivity.
5. Dehydration of ethyl alcohol.
6. The production, assembly or maquila, manufacturing, processing, t ransformation,
or commercialization of compensating products that use alcohols as raw material
or input6.
5 With the exception of activities related to the production, processing or commercialization of

natural gas, oil and derivatives; cement; mineral metallic and non-metallic products mined from
Salvadoran subsoil; sugar and its substitutes, sugar products and by-products; alcohol; sacks of
synthetic fibers; goods classified as polluting or harmful; commercialization of metal waste and
scraps; import of machinery with leasing purposes and supply of food intended for employees or
companies benefitted by this Law.
6 Including the ones mentioned in heading 2207 and subheading 220890 of the harmonized system,
as long as the final product isn’t liquor or beverages containing alcohol, unless these have medical
or cosmetic use.

Benefits:
1. Full exemption from customs duties and other taxes on the import of machinery
and equipment used for production.
2. Full exemption from customs duties and other taxes on the import of raw
materials and other goods used for production.
3. Full exemption from customs duties and other taxes on lubricants, fuel and
other substances used for production.
4. Full exemption from taxes on the transfer of real-estate property, for the
acquisition of real estate that will be used in the incentivized activity.
Income tax exemption according to the following table:
Period of exemption Period of e

xemption
Percentage
Location for companies in a for companies
of Exemption Free Zone operating as DPA
100% For 15 years For 10 years
San Salvador
For the following For the following
Metropolitan 60%
10 years 5 years
Area (SSMA)

40%
10 years 10 years
Outside For the following For the following

60%
SSMA 15 years 10 years

40%
10 years 10 years
Shareholders also benefit with full exemption from income tax on the distribution
of profits and dividends – originating from the incentivized activity – during the
first 12 years.

Exemption from municipal taxes, according to the following table:
Period of exemption Period of e

xemption
Percentage
Location for companies in a for companies
of Exemption Free Zone operating as DPA
San Salvador
For the following 10 For the following 5
Metropolitan 90%
years years
Area (SSMA)
75% Hereinafter Hereinafter
Outside For the following 15 For the following 10

90%
SSMA years years
75% Hereinafter Hereinafter
Municipal councils, with the purpose of promoting the development of their

municipalities, have the legal power of granting additional benefits to investors.
Upon the expiration of the full exemptions period, investors established in free
zones can benefit of an additional five years of total exemptions if they have
increased their investment (in relation to their initial investment) by 100 %in the
last five years7.
7 The increase in investment must be done in the purchase of land, in the construction of buildings
and in the purchase of machinery and equipment linked to the incentivized activity. In addition,
holders of companies dedicated to the manufacture of microprocessors; integrated circuits; parts
of terrestrial, aerial, and maritime vehicles; parts of computer equipment and medical devices;
equipment for generation, to be installed in a Free Zone, shall be entitled to an additional period
of five years of total exemption from payment of municipal and income taxes. Also, the owners
whose industrial activity has been declared as strategic and are authorized to operate under the
free zone regime, shall be entitled to an additional period of ten years to the total exemption from
payment of municipal and income taxes.

International Services Law
Provides tax incentives to companies dedicated to providing services to foreign
customers. To enjoy these benefits companies may establish in:
·Service Parks: Limited areas considered to be outside the national customs
territory, where exporters of services are installed and operate under the benefits
of this law8.
·Service Centers: When a company – in an eligible activity specified in this law –

for physical or technical reasons, is unable to operate inside a service park, it can
be authorized to operate outside a Service Park, as a Service Center and enjoy all
the benefits of this law.
Eligible activities9:
Activities to Operate only Activities to Operate in Service Activities to Operate
within Service Parks Parks or as Service Centers in Ports or Airports
International distribution: International call centers or Maintenance and repair of
storage, gathering, consolidation contact centers airplanes
and de-consolidation of third
parties’ merchandise with the
purpose of being exported or
re-exported
International logistics Business processing outsourcing Maintenance and repair of
operation: Planning, control and (BPO) maritime vessels
handling of inventories, selec-
tion, packing, crating, dividing,
classification, ticketing, labeling,
signaling, invoicing, inspection
of cargo and others
Research and development Information technologies: design Maintenance and repair of
and development of software, containers
systems, and IT applications
International financial services Medical and Specialized services to aircrafts
Financial institutions manage- hospital services Services provided to passenger
ment process outsourcing or cargo airplanes to s upply
nonalcoholic beverages,
prepared meals, consumable
and disposable products
inventory administration; orga-
nization, laundry, and cleaning
of reusable items in aircrafts10.
Technological equipment repair Elderly and convalescent care
Telemedicine: post-checkup medical
advice and specialized consultation,
laboratory tests, pathological and
image-based studies, clinical history
management and treatment support
Cinematography: Post-production
services carried out on recorded ma-
terial, that may include subtitling and
translation, among other services.

Benefits:
1. Full exemption from customs duties and other taxes on the import of machinery,
equipment, tools, replacement parts, accessories, furniture and office equipment,
and other goods required for the execution of the incentivized activity.
2. Total exemption from income tax, exclusively for income deriving from the
incentivized activity during the period of operation in the country.
3. Total exemption from municipal taxes on company assets during the period of
operation in the country.
Renewable Energy Incentives Law

Eligible activities:
This law promotes investment in hydraulic, geothermal, wind, solar and biomass,
or other source considered renewable energy to generate electricity.
Benefits:
1. Full exemption (during the first 10 years) from customs duties on imports
of machinery, equipment, materials, and supplies intended exclusively for
pre-investment and investment activities in the construction of the electrical

power generation centrals11.
2. Full exemption from income tax for a five-year period, for projects greater than
10 (MW), and ten years for projects equal or under 10 megawatts (MW)12.
3. Total exemption from taxes on revenues originated from the sale of Certified
Emissions Reductions (CER) in the framework of the Clean Development
Mechanism (CDM) of the Kyoto Protocol or similar carbon markets.
Geothermal plants may deduct from income tax (for up to 10 years), all e
xpenses or
costs on associated with the reinjection process of the total geothermic resource13.
8 Companies that provide services can also operate inside any Free Zone; it will be considered as if
they were operating in a Service Park.
9 The following incentivized activities can allot part of their services to the national market:
international distribution (50%), international logistics operations (50%), international call center
(40%), information technologies (30%), research and development (30%), international financial
services (40%).
10 The operations related to Maintenance and Repair of Containers and Specialized services to
Aircrafts can be located within a 6.21 miles radius from ports or airports.
11 It includes the construction or expansion of the substation, transmission, sub-transmission lines
required to transport energy from the plant to the transmission and/or distribution grids.
12 In both cases - with the start of operations of the renewable energy project, corresponding to
the fiscal year in which revenues are obtained.
13 The deduction may not be greater than 20% of the previous year’s gross income and will be
carried out via annual quotas that will not exceed 25% of the income obtained in each fiscal year
up to its total amortization.

Law of Legal Stability for investments
This law guarantees legal certainty to investors on taxes, customs, and immigration
issues through Legal Stability Contracts. Individuals and legal entities -national or
foreign- with new investment projects or the expansion of existing investments
within the following eligible activities may benefit from this law.
Eligible activities
1. Aeronautics 8. Health Services
2. Agroindustry 9. Offshore Business Services
3. Aquaculture 10. Tourism
4. Electronics 11. Telecommunications
5. Energy 12. Light Manufacturing
6. Strategic Infrastructure 13. Science and Technology14
7. Logistics
Benefits
Once a Legal Stability Contract is signed, private investors shall benefit with the
following guarantees15.
1. Tax stability at national level.

2. Tax stability at the municipal level.
3. Stability in tax exemptions provided by special legislation for the period in which
these were granted by the relevant institution.
4. Stability on customs procedures.
5. Stability on the right to transfer funds abroad as stated on the Investment Law
6.Stability on the immigration regime concerning the investor´s residence status.
To be eligible for these benefits, investors shall comply with the requisites stated
in this law, among which is the commitment to invest an amount on fixed a ssets
greater than or equal to four thousand two hundred and twenty times the industry
minimum wage (USD 365.00). This is equal to USD 1,540,300.00 in new investment
projects or the expansion of existing investments. Benefits are granted for a period
of up to 20 years depending on the amount of the investment16.
14 Other activities may be eligible if they comply with the requisites stated in this law and with the
technical analysis performed by specialized institutions.
15 Indirect taxes are excluded from the tax stability regime.
16 Investments of up to 21,100 times the industry minimum wage (USD 7,701,500) may benefit with
a legal stability contract for a period of 5 years; investments of up to 42,200 times the industry min-
imum wage (15,403,000) for 10 years; and investments above this amount for a period of 20 years.

Free trade zones
and industrial parks
El Salvador has free zones designed for companies engaged in the production
and export of goods or services. These industrial parks provide companies with
the necessary services to operate efficiently and offer attractive tax incentives to
investors. These industrial parks stand out for their strategic location and easy
access to competitive infrastructure: they are near the capital and other major
cities and close to world-class highways, airports, and ports.
Airport of the Pacific

(Coming soon)
Symbology
Airports Border Main cities Ports Capital
Northern Longitudinal Highway

1. Santa Ana Free Zone 10. San Marcos Free Zone
Panamerican Highway 2. Las Mercedes Free Zone 11. San Bartolo Industrial and Commercial
3. Free zone 10 Free Zone
Litoral Highway 4. ExportSalva Free Zone 12. Santo Tomás Free Zone
Free Zone located in the 5. Pipil Free Zone 13. International industrial park and free zone
Metropolitan area of San Salvador 6. Sam Li Free Zone 14. Miramar Free Zone
7. American Industrial Park 15. El Pedregal Free trade zone
Free Zone located outside the 8. Santa Tecla Free Zone 16. Concordia Industrial Park and Free Zone
Metropolitan area of San Salvador 9. Free zone San José 17. Calvo Conservas Free Zone

Operational costs
Electricity
Electricity rates (USD/KWH)*

Source: SIGET
With power metering
Low voltage $0.14 - $0.17

Medium demand
Medium voltage $0.14 - $0.15
Time-differentiated metering
Low voltage
Peak hours $0.14 - $0.19
Mid-peak hours $0.14 - $0.18
Medium and Off-peak hours $0.17 - $0.21

large demand
Medium voltaje
Peak hours $0.13 - $0.18
Mid-peak hours $0.13 - $0.14
Off-peak hours $0.17 - $0.18
*Note: Rates are effective from November 2022 to January 2023. In addition to
the energy charge, a fixed monthly commercialization charge (customer service
and variable distribution charges - power (US$/kW-month) apply.
Water
The National Administration for Sewers and Aqueducts (ANDA, for its acronym
in Spanish) is the government entity in charge of water distribution and sewage
management services. The following table shows the current rate structure for
potable water supply in El Salvador and other related services. The following
information shows price brackets for m3, including aqueduct and sewerage:

Price brackets for the commercial sector consumption 17
Source: ANDA
Consumption range (m3) Water Cost(USD) Sewerage Cost (USD)

0 to 5 $3.76* $0.10
6 to 20 $0.900/m3 $5.00
21 to 30 $1.200/m3 $5.00
31 to 50 $1.500/m3 $7.50
51 to 60 $1.875/m3 $7.50
61 to 90 $2.344/m3 $7.50
91 to 100 $2.930/m3 $7.50
101 to 500 $3.662/m3 $10.00
501 here after $4.578/m3 $20.00
*Fixed minimum rate
Telecommunications
El Salvador’s telecommunications market has multiple service providers offering
a variety of voice and data services, as well as value-added solutions that meet
the needs of their clients. The following table presents average costs of land and
mobile telephone lines. Corporate clients can get reduced preferential rates.
Maximum Landline and Mobile Phone Rates (in USD)

Source: General Superintendence for Energy and Telecommunications (SIGET 2022)
Landlines Mobile phones*

Commercial operation fixed Minute rate to same provider,
$4.40 $0.09
rate (monthly payment) landline
Minute rate to another provider,
Local rate per minute $0.03 $0.09
landline
Calls to mobile phones, rate Minute rate to same provider,
$0.10 $0.11
per minute mobile phone
Calls to United States, rate Minute rate to another provider,
$0.30 $0.12
per minute mobile phone
*Rates for postpaid plans. Taxes not included.
17 Applicable from October 2015.

Internet services are stable and have extensive coverage across the country.
Internet connections can be contracted at different bandwidths.
Dedicated Internet Rates18 (in USD)

Source: Quotes with service providers (2022).
Speed* Monthly fee
25Mbps $ 271.20
50Mbps $ 452.00
70Mbps $ 621.50
100Mbps $ 875.75
150Mbps $ 1,243.00
* Other bandwidth options are available according to the client’s needs. Taxes not
included.
Industrial spaces
El Salvador offers investors industrial land Monthly rental costs
in free zones and service parks where Average Monthly Cost
companies can benefit from generous tax (In USD per squaremeter)
incentives and can access quality services
to operate and export their products and Industrial space $4.80 - $2.25
services to foreign markets.
Source: Free Trade Zone Administrators. Prices are negotiated with the free zone administrators
and vary depending on the location of the free zone, the areas required, the services offered,
among others.
Wages
Wages are determined freely, but cannot be lower than the minimum wage
established by the National Wage Council, revised at least every three years.
Minimum Wage per sector (in USD)

Commerce Textile and
WAGES PER Agroindustry Industry
and Services Apparel
Hour $1.00 $1.50 $1.50 $1.48
Day $8.00 $12.00 $12.00 $11.81
Month $243.46 $365.00 $365.00 $359.16
Note: Rates in force since August 1st,2021. For more information regarding fringe
benefits see next section: Labor Market | Regulations | Labor benefits.
18 Costs vary according to the operator and technical specifications of the service.

Labor market
Regulations
Labor benefits: We have competitive labor costs.
Salvadoran legislation establishes the following benefits for employees:
7.50% 8.33%
4.17% 8.75%
or
1.25% 1.00%
4.17%
31%

Fringe Benefits. Salvadoran legislation provides the following benefits:
Employer Monthly
Description
Obligations Percentage
Annual paid Vacations are paid once per year and correspond to 30% of a
15-day salary. 1.25%
vacations
The employer pays an amount equivalent to 7.5% of the base
Social Security salary. For the calculation of this contribution, a maximum of
7.50%
(ISSS) USD 1,000.00 will be considered as base salary.
Applicable only to companies with 10 or more employees.

Training Fund The employer pays an amount equivalent to 1% of the base 1.00%
(INSAFORP) salary.
Paid annually in December (it is not necessary to make a
Christmas monthly provision). The amount is calculated according to
4.17%
Bonus the number of years served: 1-3 years (15 days salary), 3-10
years (19 days salary),10 years or more (21 days salary).
Retirement The employer contributes with 8.75% of the base salary.
Fund (AFP) 8.75%
Total benefits paid by employers 22.67%
Compensation for voluntary resignation or Compensation for unjustified dismissal (only one
of the two will apply):
This compensation is due in the case of voluntary resignation
from the employee. The law does not obligate to maintain a
reserve to pay this compensation, but it does mandates it shall
be paid in the case of voluntary resignation of an employee
that has at least two continuous years of service for the same
Compensation employer. For managers, department heads and specialized
for voluntary workers, to have right to this compensation, it is an o
bligation 4.17%
resignation that such employees give the employer a 30-day written
notice. All other employees may give written notice 15 days
in advance. 15 days of salary will be paid for every year of
service. For effects of calculating the payment, no base salary
may be higher than two times the current minimum wage.
This provision is used in case of an unjustified dismissal.

Thirty days will be paid for each year of service provided, and
Compensation proportionally for fractions of a working year. To calculate
for unjustified compensation, no salary will be greater than four times the
8.33%
dismissal current minimum wage (Art. 58, Labor Code). The law does
not require companies to maintain this provision but obliges
payment in case of unjustified dismissals.
Up to a
Total benefits paid by employer + Compensation for unjustified dismissal/ maximum
Compensation for voluntary resignation of 31.00%

Working shifts
Day Night
Shift Shift
6:00 am and 7:00 pm 7:00 pm and 6:00 am
Maximum of 8 hours per day Maximum of 7 hours per day
44- hour workweek 39-hour workweek.
25 % surcharge (applied on the salary
of a similar work in day hours).
National holidays
El Salvador has the following statutory holidays with full salary benefits according
to the Labor Code of El Salvador:
•January 1st (New Year’s Day) •June 17th (Father’s Day)
•Thursday, Friday, and Saturday •August 6th (Festivities of San Salvador)*
of Holy Week •September 15th (Independence Day)
•May 1st (Labor Day) •November 2nd (All Saints Day)
•May 10th (Mother’s Day) •December 25th (Christmas Day)
* Note: Additionally, August 3rd and 5th are stablished as holiday in San Salvador.
In the rest of the national territory the main day of the local festivities is stablished
as holiday according to traditions.
Social security
El Salvador’s social security system contemplates the following:
Health and
maternity
benefits
Aging and
Disability
retirement

Health and maternity benefits
In case of illness, the employer is responsible for paying the first three days of the
worker’s absence and after that, the social security covers 75% of the worker’s
salary. In case of maternity, the social security covers 100% of the monthly salary
(up to USD $1,000.00) and the employer gives a 16-week period of maternity leave
for the mother.
Disability
For one year or less of disability, a percentage of the worker’s salary is covered
by the social security, exceeding that period, the retirement fund provides a
percentage of the worker’s salary according to the disability degree.
Aging and retirement

After competition of 30 working years, men can retire at the age 60 and women
at the age of 55 years.
Access to labor
The Government of El Salvador productive sectors, with the a bility
is c reating an employment office to identify and provide qualified
“El Salvador Emplea”, which aims personnel, thus contributing to cover
to become a strategic partner for the needs required both by companies
investors while linking the labor
seeking to establish in the country or
supply and demand of human capital. companies planning to expand their
This office will facilitate the access to operations in El Salvador.
suitable human capital for different


Living in
04 El Salvador

Residence and
work permits
El Salvador offers migratory stability by developing investments in the country,

establishing Consular or No Consultation and Consulted visas, these visas are
granted in diplomatic representations. It is important to check the list of countries
for visa type identification (https://rree.gob.sv/servicios/visas-para-extranjeros/)
As well as they may be sub-classified, according to their economic activity, in

Investor visa, Business visa and Commercial Representative visa, which may be
granted for a single ticket or multiple tickets.
Among the main characteristics of visas should be considered:
Foreign businesspersons
01 Persons who have the quality of president, members of the board of
directors, legal representative, shareholder of a commercial company;
Owner or general manager of a company that enters the country with
the purpose of carrying out activities of promotion or identification of
investment opportunities in the areas of, industry, commerce, tourism,
suppliers of goods or services or any lawful economic activity.
Foreign investors
02 Foreign person who has the quality of president, members of the
board of directors, legal representative, shareholder of a commercial
company legally established in Salvadoran territory; owners or general
managers of a company that has an active investment in the country in
accordance with the provisions of the Investment Law.
Commercial representatives
03 A foreign person who enters and temporarily remains as head of
management to supervise or train employees of a company legally
constituted in Salvadoran territory. Likewise, those who enter to attend
specialized matters, traveling agents, commercial delegates, technical
support, supervisor, and auditor exceptionally linked to the activities of
the company or companies based in El Salvador.

Cost: $200 Estimated time: 5 to 20 days Steps: Present the form F-49
Foreign personnel who wish to work in El Salvador require work permits, along
with temporary residence in the country. The hiring of the professional s ervices
of a foreign worker requires prior authorization from the Ministry of L abor. This
authorization is for a period of one or two years, if the company hires and trains
an equal number of Salvadorans. The authorization may be extended for equal
periods.
Central American Temporary Resident $70.00 Up to one year
Temporary Central American Resident $130.00 Up to two years
Non-Central American Temporary Resident $140.00 Up to one year
Non-Central American Temporary Resident $260.00 Up to two years
Estimated time: 45 days Steps: Present the Form F-03

The following link from the General Directorate of Migration and Foreigners
details the different types of residence and work permits in El Salvador:
https://www.migracion.gob.sv/guia-de-servicios/
Quality of life
El Salvador offers the right
combination services and connectivity; and it is
between quality of life and a ffordability. the 2nd country in the region with
It ranks 2nd in C entral America in the lowest cost of living, b
eing up to
living conditions measured in terms
25% cheaper than countries like Costa
of material resources, shelter, basic Rica.
a. Living Conditions Index b. Cost of living index
(Legatum Institute)

Graphic a Graphic b
Source: fDi Benchmark from the Financial Source: fDi Benchmark from the Financial
Times Ltd 2022, data from Legatum Prosperity Times Ltd 2022. Country cost of living
Index (2019). The Living C onditions pillar index: Rating 0-10 (0=lowest cost of living;
measures the degree to which a reasonable 10=highest cost of living); City cost of living
quality of life is e
xperienced by all, including index: Index based on New York City (where
material resources, shelter, basic services, and NYC = 100).
connectivity. Rating from 1 to 100.
Security
In the last five-year period, El Salvador of 8 homicides per 100.000 inhabitants.

has gone from occupying first place There has been an 85% reduction
on homicide rate in the world, with on the homicide rate over the past 5
53 homicides per 100.000 inhabitants years. 2022 closed as the safest year
in 2018, to getting out of the top 10 in the recent national history and the
ranking and being one of the safest trend continues downward.
countries in Latin America, with a ratio
Charts 1: Evolution of El Salvador’s homicide rate per 100.000 inhabitants (2018-2022)

Source: own elaboration with data from INFOSEGURA and National Police (PNC) 2022
The most recent public security policies are focusing on the reduction of violent
crimes and the eradication of criminal groups on rural and urban sectors.

Education
The national educative system consists of two modalities19:
1. Formal education is taught in authorized educational establishments, with

a regular and prefixed sequence, that advances from an initial level to higher
education. The composition of courses per levels is as follow:
1.1 Initial Education: infants from 0 to less than 4 years.

1.2 Early Childhood Education: for 4, 5 and 6-years old children.
1.3 Basic Education: is subdivided into three cycles. First cycle, from first
to third grade; Second cycle, from fourth to sixth grade, and Third cycle,
from seventh to ninth grade. The first and second cycle of Basic Education
corresponds to Primary, in the international classification.
1.4 Secondary Education: is subdivided into general high school studies
and vocational technical the first with a duration of 2 years and the second
of 3 to 4 years.
1.5 Higher Education: includes the technical, college, university and
postgraduate, which have different durations, depending on the modality
and the chosen career.
Formal education is open to any person, with the only requirement of

approving the respective evaluation process for the applied course.
2. Not formal education offers complementary education to finish, update, train

or strengthen academic or working aptitudes without submitting to the formal
levels.
Early childhood, basic and secondary Most of the private institutions include
education are mandatory and free (at competitive English programs and
public centers) for all children under there’s a great offer of international
16 years. There are 458 public schools schools that adjust to the quality
and 322 private educational centers in of countries like the United States,
the Metropolitan Area of San Salvador England, Germany, or France, among
(AMSS by its acronym in Spanish) that others.
fully or partially covers these courses
on the regular education system.
19 Taken from: Asamblea Legislativa de la República de El Salvador, Título II: Sistema Educativo,
Niveles y Modalidades; Capítulo I: Sistema Educativo. En Decreto N°917: Ley General de Educación.

The table below shows the number of students enrolled at a sample of the best-
known bilingual schools placed at the AMSS:
Table 1: enrollment on leading Salvadoran bilingual schools

Source: own elaboration based on MINEDUCYT’s 2022 database.
Student
Name Department Municipality
enrollment
Liceo Francés (Lycée Français
Antoine et Consuelo de La Libertad Santa Tecla 1,310
Saint-Exupéry)
Academia Británica Cuscatleca
La Libertad Santa Tecla 1,181
(British School)
Escuela Americana
San Salvador San Salvador 1,136
(American School)
Colegio Salesiano Santa Cecilia La Libertad Santa Tecla 1,095
Escuela Alemana
La Libertad Antiguo Cuscatlán 939
(Deutsche Schule)
Colegio “Highlands” (Highlands
San Salvador San Salvador 805
International School)
Colegio Salvadoreño Inglés San Salvador San Salvador 685
Colegio Lamatepec La Libertad Santa Tecla 628
Escuela Cristiana Oasis

San Salvador San Salvador 440
El Salvador
Escuela Bilingüe Maquilishuat San Salvador San Salvador 376
For higher education, there is an Among these, the national public

academic offer of more than 600
center of higher education is the

careers at around 60 universities or
University of El Salvador (UES), with

colleges with campuses distributed 12 faculties for pre and post g
raduate
on the Salvadoran territory, in areas of programs and four campuses, located
economics, business, exact sciences, at San Salvador, San Miguel, San
education, health, social sciences, Vicente, and Santa Ana.
letters, natural resources, arts, design,
engineering and architecture.

Healthcare services
More than 30 hospitals and s pecialized In El Salvador, there are about 20
centers are operating in the public and thousand medical doctors, many of

private network of the M etropolitan them with postgraduate degrees in
Area of San Salvador. All workers the US, Europe, Mexico, Cuba, among
in El Salvador are protected by the other health leading countries. A
ISSS, which ensures public health directory of medical services and

services to them and their families. doctors can be found here: https://

Alternatively, any person or company www.medicosdeelsalvador.com/#
has the option to contract a private
insurance through one of the nearly Health services are provided at more
1,500 authorized intermediaries competitive costs than in the US or
certified by the Superintendence of
Canada, generating a demand for
the Financial System (SSF): https://ssf. medical tourism.
gob.sv/registro-publico/intermediari-
os-de-seguros/
Financial services
El Salvador has a solid and strong banking sector, in line with international standards.
El Salvador ranks 1st in the region in the assessment of the financial system of
the Global Competitiveness Index 4.0, which measures the depth, availability of
credit, insurance and other financial products, stability and other indicators of the
financial system.
Assessment of financial system
Source: Global Competitiveness Report, World Economic Forum, Switzerland, 2019
(fDi Benchmark 2022)
El Salvador
Costa Rica
Honduras
Guatemala
Nicaragua
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70

The main commercial banks are:
Source: Financial system superintendence of El Salvador (2017)
Energy
Solid companies with ample experience in the electrical industry perform
electricity distribution in El Salvador. The main distribution companies are:
1. AES Group, with four electricity 2. Distribuidora de Electricidad del
distribution firms, reaching the Sur (DELSUR), which supplies energy
central-northern area of El Salvador
to the central-southern part of the
(CAESS), the western area (CLESA), and country.
the eastern area (EEO and DEUSEM).
CAESS
CLESA
EEO
CAESS
DEL SUR

Telecommunications
Telecommunication companies stablished in El Salvador are executing important
investment that guarantee a steady development of the telecommunication
infrastructure and leading-edge technology adoption.
The following table shows the main telecommunications operators in the country.
Operator Basic services*
América Móvil,
Landline, mobile phone, cable TV, internet (fixed and mobile)
(Telecom/Claro)
Millicom
Landline, mobile phone, cable TV, internet (fixed and mobile)
(Telemóvil/Tigo)
Telefónica
Landline, mobile phone, internet (mobile)
(Movistar)
Digicel Mobile phone, internet (mobile)
Intelfon (RED) Mobile phone, radio communication
Telecam Internet, cybersecurity
Salnet
(El Salvador Landline, internet
Network)
GCA Telecom Landline, internet, video surveillance

Urban mobility
The National Law of Road Transport, Traffic and Road Safety (article 74) and its
Regulation (articles 157, 161 and 163) summarize the requirements that foreigners
must meet to obtain the permit to drive in the Salvadoran territory depending on
the expected time of stay of the person.
1. Those whose stay is less than 90 consecutive days are allowed to drive
with an official driver’s license or permit from their country of origin.
2. Those whose stay is longer, must follow a validation process which is

developed though SERTRACEN, a regional entity that provides transit for
Central American countries. The requirements for this process are:
2.1 Presentation of document: (i) passport, (ii) temporary residence
card, (iii) current foreign driver’s license and (iv) proof of blood group
from an authorized laboratory.
2.2 Visual exam approval and payment ($3.39).
2.3 Fee payment ($54.53).
For more information:

https://www.sertracen.com.sv/index.php/homologacion-licencia-extranjera
In addition to the possibility of self-driving a car, there are other alternatives for
the efficient and safe mobilization of individuals such as taxis and private t ransport
services by application, such as UBER and INDRIVE, which are becoming commonly
used by the middle class in the metropolitan area.

Visit
05 El Salvador

Travel information
The most popular way to enter El Salvador is arriving at the International Airport
(AIES – SOARG), which is one of the largest and most modern in the region. It
operates as Avianca’s hub for Central America. Other airlines from South and North
America, and Europe also operate in this airport.
Airlines operating in El Salvador
Avianca, American Airlines, Delta, It offers direct access to 35 routes of
Volaris, Iberia, Copa Airlines,
United, origin and destination in 14 c
ountries,
Spirit, Aero Mexico, Tropic Air, Air as well as excellent air traffic
Transat, Frontier Airlines, Arajet, Tag connections.
Airlines.
Destinations with Direct Flights

Source: CEPA. Note: Active routes may vary depending on the season.
35
Direct
routes
14
Countries
Belize: Belize
Canada: Toronto, Montreal Nicaragua: Managua
United States: Atlanta, Dallas, Houston, Costa Rica: San José, Liberia
Fort Lauderdale, Los Angeles, Miami, Panama: Panama
New York, Newark, Ontario, San Francisco, Ecuador: Guayaquil, Quito
Washington, Boston, Orlando Peru: Lima
Mexico: Mexico, Cancun Colombia: Bogota, Medellin, Cali
Guatemala: Guatemala, Flores Spain: Madrid
Honduras: Tegucigalpa, San Pedro Sula, Palmerola Dominican Republic: Santo Domingo

Entry requirements
El Salvador has free mobility of foreigners between the Republics of El Salvador,
Honduras, Guatemala, and Nicaragua, this is part of the Agreement for the C
reation
of the Single Central American Visa (CA-4). To enter El Salvador, check the list of
countries and verify the correspondent migratory category that applies: https://
rree.gob.sv/servicios/visas-para-extranjeros/
It does not require visa management for countries that

are in category A, except those that are asked to cancel
Category A: Tourist Card.
Visa Exempt Tourist Card Cost: USD $10.00
Estimated time: Immediate
Step: This permit is made at the immigration post upon
entering El Salvador.
It must be processed before the consular representation

Category B: or Embassies of El Salvador, depending on the country
Consular Visa or of origin.
No Consultation Single income Cost: USD $30
Multiple Deposit Cost: USD $60
It must be processed before the C onsular representation

of the Ministry of Foreign Affairs, depending on the
Category C: country of origin.
Visa Consulted Cost: USD $40
Time: Start the process 4 weeks before entering El
Salvador.
Step: Filing Requirements Form F-46
The tourist visa allows the visitors to stay in the country for a maximum of 180
days.

Destinations
El Salvador, with a total land area of 21,000 km2 and a 307 km coastline, offers
the possibility to surf, hike, dive or visit archaeological parks or museums all in
the same day and a few hours away from the coast. Some of the main touristic
destinations include:
Time from El Salvador
El Tunco 45 m Sushitoto 2.5 h Conchagua Volcano 4.0 h Joya de Cerén 1.5 h

El Zonte 1.0 h Santa Ana 2.0 h Santa Ana Volcano 2.0 h El Tazumal 2.0 h
El Sunzal 1.0 h San Miguel 3.0 h Coatepeque Lake 2.5 h Cihuatán 1.5 h
Costa del Sol 1.2 h La Palma 2.3 h Los tercios waterfall 1.5 h Casa Blanca 2.0 h
El Cuco 3.0 h Ataco 2.5 h Balboa national park 0.5 h San Andrés 1.5 h
Los Cóbanos 2.0h Ilobasco 1.5 h El Pital Hill 2.5 h

Surf city Archaeological parks
Surf lovers have an unavoidable Get immersed in the ancient
appointment in Surf City. From east
history of our region by visiting our
to west of the Salvadoran c oastline archeological places. You will be able
and along just over 300 kilometers, to find astonishing relics, pyramids,
beaches, and waves one after the
museums and some buildings that
other will
delight the most expert date from more than 1,500 years ago.
surfers and those wishing to start in Some highlighted places include: Joya
this
exciting sport. Besides b eing a de Cerén, San Andrés, El Tazumal,
world-class attraction for t ourists. Cihuatán and Casa Blanca, all of them
Surf City becomes a comprehensive archaeological parks. Find more infor-
development
strategy for the mation: https://elsalvador.travel/cate-
Salvadoran coastal strip to boost the
gory/archaeological-parks/en/
economic prosperity and s ocial
welfare of communities of diverse
coastal areas of the d epartments of
Ahuachapán, Sonsonate, La Libertad,
La Paz, San Miguel, and La Unión. An
innovative bet on tourismsustainabili-
ty over time, completely connected to
nature. More information: https://el-
salvador.travel/category/surfcity/en/
Towns and cities
Discover fascinating cities and c olorful
towns along the country. Dive into
our culture by visiting historic places
such as theaters, galleries, cathedrals,
colonial city houses and
symbolic
buildings. Additionally, often just a few
Nature and adventure meters away, you can find m odern
El Salvador is widely known for its shopping centers, five-stars hotels
short distances to easily connect from and restaurants and the commercial
the city to nature. Connect with your side of the cities. Some examples of
inner self surrounded by nature and the most famous and scenic p laces
amazing views, such as lakes, hills,
of El Salvador are Suchitoto city,
natural reserves and parks, peacefully located in Cuscatlán department; La
waterfalls, bays and beaches. For those Palma, in Chalatenango department;
who love adventure and fun p hysical Concepción de Ataco, located in

activity, come and find volcanoes, Ahuachapán department; Planes de
adventure parks, guided tours and
Renderos in San Salvador department,
hiking, camping, among others. Find among others. Find more information:
more information: https://elsalvador. https://elsalvador.travel/category/
travel/category/nature/en/ town/en/

Investment
06 Services

Services for investors
01 02 03 04
Investment Investment Investment retention Linkages and

promotion facilitation and expansion communications
Investment promotion:
1. Investment tours, conferences, and workshops (Campaigns and
promotional events).
2. Meetings with investors presenting investment opportunities and
the business climate.
3. Preparation of customized information.
4. Planning, organization, preparation and management of site visit to
the country (Ad Hoc Business Agenda).
Investment facilitation:
1. Investor advice with sectoral investment specialist for the
establishment of the company.
2. Connecting with public, private, and academic actors to foster
synergies.
3. Advice on issues of procedures and establishment permits
(preparation of roadmaps).

Investment retention and expansion:
1. Assessment in the expansion process.
2. Facilitation in procedures and permits.
3. Monitoring the business climate (Investment Climate Assessment)
4. Monitoring and development of improvement policies in processes
and legal framework.
5. Immediate attention to solve concerns to established companies.
6. Accompaniment in the participation of fairs by established
companies.
7. Lifetime Investor Relationship (Aftercare).
Linkages and communications:

1. Lists of Service Providers (Strategic Allies).
2. Support for sub-contracts with foreign and domestic companies.
3. Facilitating the development of new products or services.
4. Preparation of country communication information.
5. Roadmaps for the development and improvement of the e cosystem
of the prioritized sectors.
6. Support in coverage of events with investors.

Get in touch
We are your strategic partner for business and investment.
Visit www.investelsalvador.com
Contact us:
Vanesa Bandak
Investment Promotion Manager
[email protected]


Investors Guide El Salvador 2023

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Investor’s Guide 2023 1

01. Why El Salvador? 4

Investor’s Guide 2023 3

4 Investor’s Guide 2023

Proximity to key markets

Enabling business environment

Committed to sustainable development and

Investor’s Guide 2023 5

Official name: Republic of El Salvador Currency: US dollar (since 2001),

Capital city: San Salvador Official language: Spanish

Total area: 8,123 square miles Time zone: Central Standard

6 Investor’s Guide 2023

Graph 1: GDP per economic activity (2021)

*Includes: administrative services, health and social assistance, professional,

Investor’s Guide 2023 7

Graph 3: FDI by source country (III trim. 2022), USD million

8 Investor’s Guide 2023

Population: 6.3 million

Labor force: 2.9 million1

1 Population over 16 years of age that is occupied or seeking employment.

Investor’s Guide 2023 9

Labor force 54.3% under

Some testimonials of investors that have chosen our country:

We now say to the world that the ­Salvadoran

10 Investor’s Guide 2023

We chose to invest in El S ­ alvador to be able to

Almost a decade ago when we were ­considering

Good labor climate

Investor’s Guide 2023 11

22,000 Technicians and 21% Share of Engineering

Specialized technical education

·MEGATEC (Gradual Education L

Aeronautical Maintenance, ­Agroindustry Gastronomy, Global Logistics, Industrial

12 Investor’s Guide 2023

a moderate level of english proficiency according to the Englih

+1 million computers and tablets delivered to students nationwide

El Salvador’s results in the English Proficiency Index (EPI)*

2020 2021 2021

Government support for

Investor’s Guide 2023 13

14 Investor’s Guide 2023

United States South

CACM: Central American

FTP: Free Trade Agreement AA: Association Agreement

Investor’s Guide 2023 15

Top 10 mid-sized #1 in cost effectiveness in the ­Americas

Cost effectiveness ranking

Rank City State

1 San Salvador San Salvador

2 Cuautitlan Izcalli Mexico (state)

6 São José dos Campos São Paulo

8 Jundiai São Paulo

9 San José San José

16 Investor’s Guide 2023

Average Inflation rate (%, 2018-2022)

Investor’s Guide 2023 17

El Salvador is an export-oriented free-market economy. The policies i­mplemented

18 Investor’s Guide 2023

a. Monetary stability with the USD Dollar as legal tender

We now say to the world that the Salvadoran

We chose to invest in El S alvador to be able to

Almost a decade ago when we were considering

Aeronautical Maintenance, Agroindustry Gastronomy, Global Logistics, Industrial

Top 10 mid-sized #1 in cost effectiveness in the Americas

El Salvador is an export-oriented free-market economy. The policies implemented

For more information about the

Substantial efforts to simplify and digitalize procedures in public administration

El Salvador provides an e xcellent ountries of Central America (SIEPAC).