El Salvador's economic and political stability guarantees a predictable environment to establish a business, with a democratic government, low inflation rates and a dollarized economy that eliminates any exchange risk.
Its strategic location at the center of the American continent, high quality logistics infrastructure, trade agreements, political stability and legal incentives to foreign investments, give a broad range of opportunities for companies that not only want to establish their business in a foreign country, but also to reach important consumer markets such as Latin America and North America.
El Salvador is part of the Association Agreement between Central America and the European Union. It also has free trade agreements with the United States and the Dominican Republic (CAFTA-DR), Central America, Mexico, Chile, Panama, Taiwan and Colombia; and a Partial Scope Trade Agreement with Cuba. All these agreements allow access to a market of 1,200 million of consumers.
El Salvador’s strategic location in the centre of America, high quality logistics infrastructure, trade agreements, political stability and legal incentives to foreign investments give a broad range of opportunities for companies that want not only to establish in a foreign country, but to expand to important consumer markets such as Latin America and North America.
The economic and politic stability guarantees a predictable environment to establish a business, with a democratic government, low inflation rates and a dollarized economy that eliminates any exchange risk.
El Salvador has an open economy and free trade agreements with Mexico, the Dominican Republic, Chile, Panama, Taiwan, United States (CAFTA-DR), Colombia and Central America. Also, an important Partial Scope Trade Agreement with Cuba and is part of the Association Agreement between the European Union and Central America, currently in ratification process.
The legal framework that gives incentives for international investment comprises an investment law that gives among other incentives national treatment to foreign investors and access to national funding, a special law for investors in the tourism sector, a free zone law that gives exemption to local taxes and import tariffs, and an international service law that gives incentives to strategic sectors such as contact centres, business process outsourcing, medical services, among others.
El Salvador’s government has identified 12 potential sectors with potential for foreign investment and trade: specialized textiles and apparel, agribusiness, tourism, offshore business services, aeronautics, electronics, medical devices, health services, footwear, logistics, infrastructure and energy. Normal 0 false false false EN-GB X-NONE X-NONE
