Tax Law
Tax Benefits 2026
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- Published June 4, 2026
El Salvador offers various tax incentives depending on your business sector. Currently, the Technology and Tourism sectors stand out with significant tax benefits. For example, for technological investments, the Government can grant exemptions of up to 15 years on income and dividends; for the Tourism sector, the Government has renewed tariff exemption benefits for machinery imports.
Main Tax Incentives in El Salvador
- Innovative Technological Investments: A 15-year exemption from income tax, import taxes for materials intended for the project, and the distribution of dividends.
- High-Value Investments ($2 Billion): A special regime offering income tax (ISR) exemption on profits, the elimination of income tax withholdings (except for high salaries), and exemption from municipal property taxes.
- Tourism Sector (2026 Extension): Exemption from import taxes and income tax benefits for tourism developments, extended until May 26, 2028, to strengthen investments in coastal and cultural areas.
- Renewable Energy: VAT exemption on equipment and materials, as well as income tax exemptions during the first years of operation for clean energy projects.
- Free Trade Zones: Companies in free trade zones enjoy full exemption from municipal taxes and customs duties on the import of machinery and supplies.
General Requirements to Apply
For most incentives, companies must submit applications to the Ministry of Economy and register with the Ministry of Finance. Our team supports you throughout the entire process until the benefit is successfully obtained.