There are seven reasons that make El Salvador an attractive destination for investment:
El Salvador dollarized its economy in 2001, therefore offers greater certainty to investors as a result of the elimination of foreign exchange risk and lower transaction and financial costs as compared to non-dollarized countries.
El Salvador’s geographic location enables a short access time to major cities in North and South America. The country is on the same time zone as U.S. Central Standard Time (CST). It offers a natural two oceans logistics corridor, proximity to the Transpacific maritime route and to the Panama Canal.
Multiple trade agreements provide preferential access to more than 1.2 billion consumers in 43 countries around the world. El Salvador has trade agreements with Central America, Chile, Colombia, Cuba, Dominican Republic, European Union, Mexico, Panama, Taiwan, Trinidad and Tobago, United States and Venezuela. Likewise, El Salvador is in negotiations to sign trade agreements with Belize, Canada, Ecuador and Peru.
The country’s legal framework provides 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.
The World Economic Forum (WEF) places El Salvador’s infrastructure among the most competitive in Latin America and the best in the Central American region. Modern port, airport and road infrastructure enable efficient logistical operations, while solid and advanced telecommunications and electricity markets guarantees access to high quality and cost-competitive services.
El Salvador is the most cost-competitive country to set up and operate a business. Over the last years, the Financial Times´ investment journal FDI Intelligence has classified El Salvador as the most cost effective country in Central America.
Investors certify that Salvadoran labor force is world-famous for its industriousness, efficiency and work ethic.
Approximately 60% of the labor force is 39 years or younger, making it a predominantly young and highly productive country.