Why El Salvador

National Population:
+6.4 million people
Growth Projection by 2020:
Main Characteristics:

El Salvador is a free, stable, and export-oriented economy.

The country dollarized its economy in 2001, which is why El Salvador has since offered greater certainty and monetary stability to investors as a result of the elimination of exchange rate risk, as well as low inflation.

El Salvador has important competitive advantages for U.S. companies, including its geographical proximity and speed of response, as well as its participation in free trade agreements that give the country access to an important market of potential clients.

Salvadoran labor is internationally recognized for its industriousness, efficiency, and work ethic. Investors established in the country rank it as one of the most outstanding in the world.

El Salvador is a member of the CAFTA-DR agreement, which eliminates most fees and barriers for goods from the United States, protects investments and intellectual property, and creates a more transparent business framework.

El-Salvador_Business Guide Cover_ENG
Interested in doing
business in El Salvador?

Growing Industries and Market Opportunities

Textile Industry
Remote Business Services

Limits for Foreign Shareholders

  • Companies in El Salvador have no nationality restrictions or shareholders' residency requirements to incorporate them.

Main Tax Rates in Country

Corporate Taxes

30% Standard Rate


5% Standard Withholding.

The rate may increase to 25% for non-residents if they are in a tax haven or a preferential tax regime jurisdiction.

Employment Taxes
Social Security: 7.5% (employer) / 3.0% (employee)
Pension Funds: 7.75% (employer) / 7.25% (employee)


Remittance of profits

Fully allowed.

Learn more about doing business in El Salvador

Fill out the form to start a conversation about expanding your business with our multi-lingual accounting and tax professionals.

Start A Conversation