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Tourism 

 

 

El Salvador: The destination of choice for tourism and business

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Located in the heart of the Americas between North and South America, the country extends from a coastal plain to a volcanic upland in the interior, bordering the North Pacific Ocean to the south and southwest, with Guatemala to the north-northwest and Honduras to the north-northeast.

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.

 

 

Investment Opportunities

 

Because of its privileged geographical location, its consolidated and growing touristic demand, and its political and economic stability, El Salvador offers great investment opportunities in:

  • Hotels
  • Boutique hotels
  • Convention Centers
  • Marinas
  • Spas and wellness centers
  • Mixed use development
  • Medical tourism:

 

Competitive Factors

  • Solid and growing touristic demand. Annually, El Salvador welcomes approximately 2 million visitors.

 

  • Tourism is central to the El Salvador’s economy because employs approximately 46,000 persons directly and represents 4.42 percent of GDP.

 

  • Political stability and dollarized economy

Incentives Offered to Investors by the Country

 

El Salvador is committed to promoting investment and developing long term relationships with investors. The country’s solid legal framework provides attractive tax incentives and gives equal treatment to local and foreign investors.

 

The Tourism Law grants benefits to projects with a minimum investment of US$25,000 and that are eligible to be declared of “National Touristic Interest”. The incentives are:

 

  • Full exemption from taxes on the transfer of real – estate property, for the acquisition of real estate intended for the project.
  • Full exemption from customs duties on the import of goods, equipment and accessories, machinery, vehicles, aircrafts and maritime vessels and construction materials used for the buildings until the completion of the projects.
  • Full exemption from income tax for a period of 10 years, starting in the fiscal year in which the fiscal year in which the business begins operations.
  • Partial exemption from municipal taxes (up to 50%) for a period of 5 years, starting in the fiscal year in which the business begins operations.

 

The Investment Law seeks to encourage private investment and more specifically, Foreign Direct Investment. This Law grants equal rights and treatment to all investors (foreign and local), permits the transfer of funds abroad with the freedom to convert currency through the banking system and protects the property.

 

Actualizado 05/03/2018