{"id":43099,"date":"2025-09-17T14:24:42","date_gmt":"2025-09-17T20:24:42","guid":{"rendered":"https:\/\/garciabodan.com\/?p=43099"},"modified":"2025-09-17T15:11:18","modified_gmt":"2025-09-17T21:11:18","slug":"el-salvador-seeks-attract-high-value","status":"publish","type":"post","link":"https:\/\/garciabodan.com\/en\/el-salvador-seeks-attract-high-value\/","title":{"rendered":"El Salvador seeks to attract high-value investment and strengthen corporate technical capacity"},"content":{"rendered":"

On August 11, 2025, the Official Gazzette published two decrees establishing special regimes designed to position El Salvador as an attractive destination for foreign direct investment. <\/span>Both instruments aim to facilitate the inflow of capital, technology, and specialized personnel into the country.<\/span>\u00a0<\/span><\/p>\r\n

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  1. Special regime for high-value investments<\/span><\/b><\/li>\r\n<\/ol>\r\n

    This regime applies to investments equal to or greater than <\/span>US $2 billion<\/span><\/b> in capital or assets, made through capital contributions for the incorporation of companies, purchase of real estate, among others. <\/span>Investor benefits include:<\/span>\u00a0<\/span><\/p>\r\n

      \r\n\t
    • Full exemption from Income Tax<\/span><\/b> on profits, dividends, royalties, and capital gains derived from the investment.<\/span>\u00a0<\/span><\/li>\r\n<\/ul>\r\n
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      • Exemption from withholding tax on income at source.<\/span><\/b>\u00a0<\/span><\/li>\r\n<\/ul>\r\n
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        • Exemption from the Real Estate Transfer Tax<\/span><\/b> on the purchase of property for business activities.<\/span>\u00a0<\/span><\/li>\r\n<\/ul>\r\n
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          • Exemption from municipal taxes<\/span><\/b> on declared net assets.<\/span>\u00a0<\/span><\/li>\r\n<\/ul>\r\n
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            • Exemption from tariffs and import duties<\/span><\/b> on goods, supplies, machinery, and equipment necessary for operations.<\/span>\u00a0<\/span><\/li>\r\n<\/ul>\r\n

              Requirements<\/span><\/b>\u00a0<\/span><\/p>\r\n

              To access these incentives, investors must:<\/span>\u00a0<\/span><\/p>\r\n

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              • Register the investment with the Ministry of Economy, submitting documentation that proves the entity\u2019s legality and the amount of the investment.<\/span>\u00a0<\/span><\/li>\r\n<\/ul>\r\n
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                • Enroll in the Taxpayers\u2019 Registry of the Tax Administration.<\/span>\u00a0<\/span><\/li>\r\n<\/ul>\r\n
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                  • File a written notice with the General Directorate of Internal Taxes (DGII) within 30 days of starting operations, providing details of the investment, partners, and the amount of capital or assets transferred.<\/span>\u00a0<\/span><\/li>\r\n<\/ul>\r\n
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                    • Report any changes to partners, corporate structure, or registry data within 10 business days of the modification.<\/span>\u00a0<\/span><\/li>\r\n<\/ul>\r\n
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                      1. Special regime for technical personnel of new investments<\/span><\/b><\/li>\r\n<\/ol>\r\n

                        This regime facilitates the incorporation of technical and administrative personnel for investors that relocate their headquarters or establish permanent operations in El Salvador. <\/span>Its main benefits include:<\/span>\u00a0<\/span><\/p>\r\n

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                        • Application of a <\/span>fixed income tax withholding as a final payment<\/span><\/b> for monthly salaries of up to <\/span>US $100,000.<\/span><\/b>\u00a0<\/span><\/li>\r\n<\/ul>\r\n
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                          • Flexibility to hire technical personnel, whether resident or non-resident, including through outsourcing arrangements.<\/span>\u00a0<\/span><\/li>\r\n<\/ul>\r\n
                              \r\n\t
                            • Clear procedures to register personnel with the Tax Administration and access the benefits.<\/span>\u00a0<\/span><\/li>\r\n<\/ul>\r\n

                              Requirements<\/span><\/b>\u00a0<\/span><\/p>\r\n

                              To access these incentives, investors must:<\/span>\u00a0<\/span><\/p>\r\n

                                \r\n\t
                              • Submit to the <\/span>Tax Administration<\/span><\/b> the payroll of hired personnel (domestic or foreign), including identification, specialization, and role.<\/span>\u00a0<\/span><\/li>\r\n<\/ul>\r\n
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                                • Report any hiring or termination of personnel within <\/span>5 business days.<\/span><\/b>\u00a0<\/span><\/li>\r\n<\/ul>\r\n
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                                  • Obtain prior qualification from the <\/span>General Directorate of Internal Taxes of the Ministry of Finance<\/span><\/b> when the investor is a non-resident, which requires:<\/span>\u00a0<\/span><\/li>\r\n<\/ul>\r\n
                                      \r\n\t
                                    • An electronic application with the required information.<\/span>\u00a0<\/span><\/li>\r\n<\/ul>\r\n
                                        \r\n\t
                                      • Payroll of hired personnel.<\/span>\u00a0<\/span><\/li>\r\n<\/ul>\r\n
                                          \r\n\t
                                        • Registration in the Taxpayers\u2019 Registry.<\/span>\u00a0<\/span><\/li>\r\n<\/ul>\r\n

                                          Key considerations for investors<\/span><\/b>\u00a0<\/span><\/p>\r\n

                                            \r\n\t
                                          • Benefits apply exclusively to new investments that begin operations<\/span><\/b> after the decrees enter into force.<\/span>\u00a0<\/span><\/li>\r\n<\/ul>\r\n
                                              \r\n\t
                                            • The Tax Administration retains <\/span>oversight and enforcement powers<\/span><\/b> and may revoke benefits in cases of non-compliance or abuse of the regime.<\/span>\u00a0<\/span><\/li>\r\n\t
                                            • The <\/span>Ministry of Finance<\/span><\/b> and the <\/span>Ministry of Economy<\/span><\/b> are authorized to issue resolutions and administrative guidelines to clarify the scope of these provisions.<\/span>\u00a0<\/span><\/li>\r\n<\/ul>","protected":false},"excerpt":{"rendered":"

                                              On August 11, 2025, the Official Gazzette published two decrees…<\/p>\n","protected":false},"author":3,"featured_media":43104,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[229],"tags":[],"class_list":["post-43099","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/posts\/43099","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/comments?post=43099"}],"version-history":[{"count":1,"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/posts\/43099\/revisions"}],"predecessor-version":[{"id":43106,"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/posts\/43099\/revisions\/43106"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/media\/43104"}],"wp:attachment":[{"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/media?parent=43099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/categories?post=43099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/garciabodan.com\/en\/wp-json\/wp\/v2\/tags?post=43099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}