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Competitive Costs

El Salvador is the most cost-competitive country to set up and operate a business. The Financial Times investment journal fDi Intelligence has classified El Salvador as the most cost-effective country in Central America.

 

 

Regionally, El Salvador is one of the most competitive countries regarding labor costs.

 

Wage:

Agro-Industry

Industry

Trade and Service

Textile and Apparel Maquila

 

Hour

$0.44

$0.91

$0.93

$0.78

 
 

Day

$3.50

$7.31

$7.47

$6.25

 
 

Month

$105.00

$219.30

$224.10

$187.50

 












 

 

 

El Salvador offers companies the option to settle within free zones and service parks. These industrial parks provide tax benefits and services that facilitate the operations of the company and its foreign trade business activities.

 

The monthly rental cost of an industrial space located in free zones and parks is on average, US$ 3.80 per square meter.

 

 

Electricity distribution in El Salvador is in the hands of sound private participants. The major distributors are Grupo AES and DELSUR. El Salvador is positioned as one of the countries offering the most competitive electricity rates for industrial purposes in the region.

 

 

The telecommunications market is characterized by having multiple suppliers offering a variety of voice and data services and value-added solutions that meet customer needs.

Corporate customers may request different bandwidths and get reduced preferential rates, depending on the contracted plan.

 

Dedicated Internet, with HDSL technology Rate
 

 

Monthly fee of a dedicated internet link,

bandwidth from 2 Mbps to 10 Mbps,

$299 - $1,100

 
 

Installation costs 

$150 - $300

 
 

Fixed Telephones

 

 
 

Fixed rate for a commercial operation (monthly)

 $14.17

 
 

Local rate per minute 

 $0.03

 
 

Nacional rate per minute 

 $0.05

 
 

Rate per minute to a mobile phone

 $0.11 - $0.21

 
 

Rate per minute for calls to the United States 

$0.05 - $0.418

 
 

Mobile Phones*

 

 
 

Minute rate on same network, landline

$0.05 - $0.17

 
 

Minute rate on another network, landline

$0.065 - $0.17

 
 

Minute rate on same network, mobile phone

$0.05  - $0.09

 
 

Minute rate on another network, mobile phone

$0.05 - $0.17

 

 

* Rates for postpaid plans

Source: SIGET and operators (2011)


 

According to the World Economic Forum, El Salvador ranks as the country with the lowest tax rate in the region (ranked number 56 globally).

 

Actualizado 12/13/2013
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