El Salvador offers a range of incentives to attract foreign investment and new commercial and industrial developments. There are no restrictions on foreign ownership, mergers, acquisitions or joint ventures.
The Exports Reactivation Law, the Investment Law, and the Industrial and Commercial Free Zone Law regulate El Salvador’s investment incentives. These laws seek to foster local and foreign investment by improving the country’s competitiveness in all areas of action.
The Exports Reactivation Law’s objective is to promote the export of goods and services beyond the Central American area, through adequate instruments, which allow representatives of exporting companies, to gradually eliminate anti-export bias, which is generated by the protective structure of the industry by import substitutions.
The beneficiaries of this law are: natural or legal persons national or foreign that export goods and services outside the Central American area.
Exports of coffee, sugar and cotton are excluded unless these products have undergone a transformation process that adds to the original value at least 30% to their added value.
Some Benefits Granted by this Law:
- Reimbursement of 6% of the FOB value for exports beyond the Central American area, the value of which has been entered into the currency exchange market.
- Exporters are affected by a 0% rate of the Added Value Tax (VAT).
- Duty exemptions for importing of raw materials and intermediate goods for partial or temporary draw back assembly operations.
- Representatives of companies that export, trade, manufacture in the draw back assembly industry, partially or temporary goods or services, will also enjoy tax exemption on property in a percentage equal to the value of the exports according to what is established by this law.
These benefits are applied even to draw back assembly activities, over the amount of the added value
The Investment Law’s objective is to encourage general investment and particularly foreign investment in order to contribute with the economic and social development of El Salvador through the increase of productivity, the generation of new jobs, the export of goods and services, and the diversification of production
Benefits granted by the Law of Investments
Friendly Procedures In order that national and foreign investments can be easily established and developed, the State has enacted brief and simple procedures in the law, which treatment will also be applied to foreign investments that wish to repatriate. Such procedures and legal requisites toward the establishment and registration of investments will be the subject matter of the by-laws of this law.
Equal treatment to all investors: Participant foreign investors and corporations will have the same rights and obligations that national investors and corporations have, without exceptions save those pointed out by the law, so that no unjustified or discriminatory measures will hinder their establishment, administration, use, extension, sale and liquidation of their investments.
Liberty to make investments: Any natural or artificial person, national or foreign, can freely make investments of any type in El Salvador, except those limited by the law, without discriminatory measures by reasons of nationality, domicile, race, sex or religion.
Transference of founds abroad: Foreign investors are warranted regarding their right to make funds transferences abroad in matters related to their investment without delays and with freedom to convert their currency via the banking market.
Access to local Financing: Foreign investors will have access to local available financing through the financing system and its institutions, as per conditions established by them.
Property protection and security: In accordance to the Republic’s Constitution, national and foreign investors are warranted in their property and the free disposition of their goods.
Creation of the National Office of Investments (NOI): This Office was created, as a dependency of the Ministry of Economy. It is a one-stop office in charged of facilitating, centralizing and coordinating governmental procedures, that must be undertaken by national and foreign investors for the execution of their diverse economic, business, fiscal, migratory and related obligations, and also with the production of statistics regarding such investments.
The Industrial and Commercial Free Zone Law gives several benefits for Natural or Artificial Persons, National or Foreign, who use Free Zones and Deposits for Active Improvement:
- 100% Income tax exemption.
- 100% Municipal tax exemption on assets and patrimony of the company.
- 100% Exemption from taxes on transference of real estate to be used in the export activity.
- 100% Tax exemption from taxes imposed on imports of the machinery
and equipment necessary for production for export
- Free admission of raw materials necessary for the export activity.
- Tax exemption on importation of lubricants and fuels necessary for the export activity
when they are not produced in the country.
- No limits on Foreign Capital
- Sales in the Salvadoran market of merchandise or services linked to international trade produced in the Free Zone, as long as they pay the corresponding import taxes, income tax, tax on transference of movable goods and rendering of services (IVA or sales tax) and municipal taxes on the final goods admitted. If it refers to manufactured products or commercialization of goods from the manufacture of textiles, including threads, such goods in order to be nationalized must pay the corresponding import duties, taxes on transference of movable goods and rendering of services (IVA), except for the domestic aggregate component of the goods or service in question, income and municipal taxes, and must contain a minimum of fifty percent of national or regional components.
Domestic and foreign enterprises may be established and function in a free zone, if they are engaged in:
- Production or assembly, manufacture, processing, transformation or commercialization of goods and services.
- Rendering of services linked to international or regional trade, such as the gathering, packaging and re-packaging, re-export, cargo consolidation, distribution of merchandise and other activities connected or complementary to these actions.
Free Zones
As of September 2005, El Salvador has 17 FTZ’s and over 200 one-factory DAI’s. The following is a list of the FTZ’s that are actually operating in El Salvador:
Export Salva Free Zone is located on Km. 24 of the Pan-American Highway, Colón, La Libertad, just 25 minutes form the capital city of San Salvador and 55 minutes from El Salvador International Airport. Its location over the main highway of the country provides greater access to the main ports in El Salvador. Puerto de Acajutla, in the Pacific Ocean is located 45 minutes away and Puerto Santo Tomas de Castilla, in the Atlantic, is less than 8 hours from Export Salva Free Zone.
- Total Area: 70 acres
- Industrial area: 86,514.93 m²
- Available Area: 24,500 m² (projected to be constructed)
- Monthly Rent Price by m² US$3.77 - $4.09
Workforce: More than 700,000 people live around a radius of 15 miles
Contact: For more information please contact: Export Salva / Web Site : Export Salva
American Industrial Park is located between San Salvador and Santa Ana, along the Pan-American Highway and its location is strategic due to the modern network of infrastructure, which has been developed in this area. Its location makes it the closest free zone to the Atlantic Ocean through Puerto Santo Tomas de Castilla, which is 8 hours away; likewise, it is only 45 minutes away from the Pacific Ocean through Puerto de Acajutla and it is located 55 minutes away from El Salvador’s International Airport. American Industrial Park is 30 less than 30 minutes away from the capital city of San Salvador.
- Total Area: 230,000 m²
- Industrial Space: 125,000 m²
- Available Area: 105,000 m²
- Monthly Rent Price by m² US$3.85
Workforce: 2,141,647 people live in a radius of 25 miles
Contact: For more information please contact: American Park / Web Site : American Park
Parque Industrial La Concordia is strategically located in one of the major cities of the western region of the country, on Km. 105 Carretera El Litoral (CA2), Jiquilisco, Usulután. Its location has great potential due to its proximity to Puerto La Unión, which is under reconstruction and will become one of the most modern on the Pacific Coast. Its construction started in 2005 and will be completed in 2008. This industrial complex is located 60 minutes from El Salvador’s International Airport, and 90 minutes from the capital city of San Salvador.
- Total Area: 343,520 m²
- Industrial Space: 113,520 m²
- Available Space: Under Construction
- Monthly Rent Price by m² US$3.50
Workforce: Around a radius of 15 miles live nearly 750,000 people.
Zona Franca 10, is a Free Zone and Industrial Park, where you can establish your production operations or distribution centre facilities, ideal for investors egger for personal attention an top of the line supplementary services. Your needs are our obligations, we are symbol of excellency, you determinate our level of involvement in your operations, we provided services from HR, logistics and Transportations to security and VIP accommodations.
Zona Franca 10 is located in km.76½ Panamericana Highway By-pass North of Chalchuapa, Santa Ana. Zon Franca 10 is 2 hours away from Puerto Acajutla in the Pacific Ocean, Less than one day away from Puerto Cortez in the Atlantic Ocean, 2 hours away from El Salvador’s International Airport and Less than 60 minutes away from the Capital City San Salvador.
- Total Area: 165,000 m2
- Constructed Area: 20,000 m2
- Available Area: 42,500 m2
- Monthly Rent Price by m2: from $3.50
Workforce: Chalchuapa municipality has over 90,259 inhabitants and in Santa Ana City (12 km away) over 606,773.
Contact: For more information please contact: info@Zonafranca10.com / or Visit our Web Site: http://www.zonafranca10.com/
El Pedregal Free Zone began operations in January 1993. It is located in Rosario La Paz, 10 minutes from El Salvador’s International Airport, and 35 minutes away from the capital city of San Salvador on the second most important highway in the country (CA-2). Distances between this Free Zone and the main seaports are 2 hours from Puerto Acajutla in the Pacific and 8 hours away from Puerto Santo Tomas de Castilla in the Atlantic.
- Total Area: 449,891 m²
- Industrial Space: 93,000 m²
- Available Area: 119,560 m²
- Monthly Rent Price by m² US$3.75
Workforce: More than 250,000 people live around a 15 mile radius
Contact: For more information please contact: Mauricio
Lagos Burgos, Gerente de Mercadeo.
Web Site: El Pedregal
El Salvador International Free Zone is located 20 minutes away from the capital city of San Salvador, in Olocuilta, La Paz, on the main highway that connects San Salvador with El Salvador’s International Airport. This Free Zone is just 15 minutes away from the airport and its proximity with the capital and other small nearby towns guarantees this park a wide workforce. The Free zone also offers access to the main ports in the Pacific and Atlantic coasts.
- Total Area: 775,360 m²
- Industrial area: 60,000 m²
- Available Area: 170,000 m²
- Monthly Rent Price by m² US$4.00
Workforce: 2,474,710 people live around a radius of 20 miles
Contact For more information please contact: Internacional / Web Site : Zona Franca Internacional
This Industrial Park began operations in 1992. It is located in Nueva San Salvador (La Libertad), the most populous and most important suburb of San Salvador, on the main highway to Puerto La Libertad. El Progreso Industrial Park is strategically situated in the area of most rapid industrial growth in El Salvador; approximately 90 minutes away from Puerto de Acajutla in the Pacific; less than 9 hours away from Puerto Santo Tomas de Castilla, in the Atlantic, and only 45 minutes away from El Salvador’s International Airport.
- Total Area: 14,500 m²
- Industrial Area: 13,901 m²
- Available Area: 1,409 m²
- Monthly Rent Price by m² US$3.50 - $4.50
Workforce: Nearly 2 million people live near the metropolitan area
Contact: For more information please contact: El Progreso or El Progreso Web Site : El Progreso
Miramar Free Zone is advantageously located at 1,200 mts. above sea level, with a unique atmosphere. Miramar Free zone is only 20 minutes away from the capital city of San Salvador, and 15 minutes away from El Salvador´s International Airport, over the main highway CA-2. Its distance from the Puerto de Acajutla in the Pacific Ocean is of 2 hours, and from Puerto de Santo Tomas de Castilla, in the Atlantic, is approximately 8 hours.
- Total Area: 63 acres
- Industrial Area: 44,000 m²
- Available industrial Area: 26,500 m²
- Monthly Rent Price by m² US$3.80
Workforce: The free zone is located in an area with a 100,000 potential workforce
Contact : For more information please contact: Miramar / Web Site : Miramar
Santa Tecla Free Zone is located in Km. 12 ½ of the main highway to Puerto de La Libertad, next to Nueva San Salvador (La Libertad), the area of most rapid industrial growth in El Salvador. Zona Franca Santa Tecla is tactically located approximately 1 hour and 30 minutes away from Puerto de Acajutla in the Pacific, less than 9 hours away from Puerto Santo Tomas de Castilla, in the Atlantic, and only 45 minutes away from El Salvador’s International Airport.
- Total Area: 25,000 m².
- Industrial Area: 18,000 m²
- Available Area: 6,000 m²
- Monthly Rent Price by m2 US$4.10
Workforce: Nearly 2 million people live near the metropolitan area
Contact For more information please contact: Santa Tecla / Web Site : Zona Franca Santa Tecla
The San Bartolo Industrial and Commercial Free Zone, is located 10 kilometers from San Salvador, the capital of El Salvador, on the eastbound Pan-American Highway, in the jurisdiction of Ilopango, San Bartolo Canton; neighboring the city of Soyapango which is considered the most industrialized area of the country. El Salvador’s International Airport, located forty-six (46) kilometers from the capital, at present provides shelter for loading and unloading of aircraft for the companies that use the free zone.
- Total Area : 145,000 m².
- Factory Space: 56,000 m²
- Available Area: 0 m 2
- Monthly Rent Price by m² US $ 3.50 (rent) + US $ 0.30 (services & maintenance)
Contact For more information please contact: San Bartolo Web Site : Zona Franca San Bartolo
Zona Franca Santa Ana, is locates on Kilómetro 69 Carretera a Metapán, Santa Ana. It is tactically located 90 minutes away from El Salvador’s International Airport and from the Acajutla Port in the Pacific Ocean. In addition, Santa Ana Free zone is approximately 7 hours away from the two most important Atlantic Ports: Puerto Barrios and Puerto Santo Tomas de Castilla.
- Total Area : 91,000 m² (of which 30% is green area)
- Factory Space: 30,000 m²
- Available Area: 10,500 m²
- Monthly Rent Price by m² Negotiable
Workforce: There are more than 30,000 people in the close surrounding areas.
President - Francisco
Díaz Alvarez,
Kilómetro 69 Carretera a Metapán, Santa Ana Telefax: (503)
2447-9862 Available Area: 10,000 mts
Zona Franca Santo Tomás is located on Km 15.5 on the Highway to Comalapa, Santo Tomás. This Free Zone is strategically located less than two hours away from Puerto Acajutla, in the Pacific, approximately 10 hours away from Puerto Santo Tomas de Castilla, in the Atlantic and only 15 minutes from El Salvador’s International Airport.
- Total Area : 23,149 m².
- Factory Space: 10,000 m²
- Available Area: Depends on the Client
- Monthly Rent Price by m² US$ 5.00 per m² (Negotiable)
Workforce: There are approximately 60,000 people in the close surrounding areas.
General Manager - Kilómetro 15.5 Autopista a Comalapa, Santo Tomás Tel.: (503) 2220-9704 Fax: (503) 2203-0980 Available Area: 0 (negotiating a new one) E-mail: kevinahn@integra.com.sv
LIDO Free Zone is located on Km. 31 of the Panamerican Highway, in San Juan Opico, La Libertad. Aeropuerto Internacional de El Salvador is 55 minutes away, and the capital city of San Salvador is 25 minutes away.
- Total Area: 55,912.78 m 2
- Constructed area: 14,000 m 2
- Monthly Rent Price by m 2 negotiable
Workforce: Various towns and cities are around this free zone.
Contact: For more information please contact: LIDO
Zona Franca Santa Lucia is located in the capital city of San Salvador, the most densely populated area of the country providing an extensive available labor Force.
- Total Area : 10,889.56 m²
- Factory Space: 6,389.64 m²
- Available Area: 0 m²
- Price by m 2: 2.90 m²
Contact For more information please contact: Santa Lucia
The San Marcos Free Zone is located in San Marcos, San Salvador, on the highway that connects with Aeropuerto Internacional El Salvador.
- Total Area: 97,548 m 2
- Industrial Area: 45,058 m 2
- Monthly Rent Price by m 2 US$3.80
Workforce: There is a rising potential workforce living around this area
Contact For more information please contact: San Marcos
Zona Franca Pipil is the only one of its kind,
since it is specially designed for Agribusiness.
The Free zone is situated in Talcualhuya, in the Jurisdiction of
San Juan Opico, La Libertad, just 90 minutes away from El Salvador’s
International Airport. In addition, it is less than 12 hours away
from three different Atlantic ports: Puerto Cortez, Puerto Santo
Tomas de Castilla, and Puerto Barrio. In addition to being only
two hours away from the port of Acajutla in the Pacific Ocean.
- Total Area: 1,060,000 m²
- Industrial Area: 10,000 m²
- Available Area: 425,000 m²
- 40 greenhouses: 10,000 m² each
- 1 nursery: 2,500 m²
Workforce: In the near by area there are more than 4,000 people for approximately 650 jobs
Contact: Tomas Regalado
Papini Tel: ( 503) 2223-5116
Email: Zona
Franca Pipil
Zona Franca Calvo Conservas is located at Punta Gorda, La Unión, next to the site of the future deep sea port Puerto La Union, which is under construction and will become one of the most modern ports on the Pacific Coast. Specifically planned for the tuna processing industry, this free zone has the capacity to hold activities such as net constructions, helicopter repairs and direct-to-plant boat discharges.
- Total Area: 76,663.53 m 2
- Industrial Area: 31,974.26 m 2
- Available Area: 0 m²
- Monthly Rent Price by m 2 US$9.06
Workforce: There is a rising potential workforce living around this area, but in the closest area, which is, 20km away there are more than 300 people.
Contact: Miguel
Angel Peñalba Tel: (503) 2244-4800
Email: Calvo
Conserva