In recent years, El Salvador has experienced a transformation in its economic, legal and security environment, consolidating itself as one of the most attractive emerging destinations for foreign investment in Latin America. For Mexican entrepreneurs seeking to diversify markets, optimize costs and access efficient logistics platforms, El Salvador offers a solid value proposal, with strategic incentives and a business climate in frank evolution.
The strategic location of El Salvador in the heart of Central America allows direct access to the main markets of the continent. From San Salvador, you can reach more than 30 destinations in America in America in a matter of hours, thanks to an air network that connects commercial efficiency to the region. In addition, its port and terrestrial infrastructure is being modernized to facilitate the mobilization of goods towards North America, South America and Europe.
The country has more than 13 commercial treaties that provide preferential access to more than 1.2 billion consumers. This includes the CAFTA-DR, the Association Agreement with the European Union and the Free Trade Agreement with Mexico and, currently, are in negotiation treated with China, Mercosur and Belize, opening the door to a strategic commercial integration.
El Salvador has achieved historical advances in legal and citizen security. Drastic reduction in crime rates has returned confidence to the business sector. In 2023, the country reached its lowest level of homicides in decades, strengthening the appeal for new investors with political and citizen stability that stands out within the Latin American region.
Regarding economic growth, El Salvador showed a 2.26% GDP growth rate in 2023. The direct foreign investment balance (FDI) grew by 5.6% compared to 2023, while FDI flow increased by 272% in the last two years, highlighting sectors such as tourism, construction, manufacturing and technology*.
El Salvador offers a robust incentive frame for strategic sectors. Among the main benefits are:
- Exemption of income taxes, dividends and withholdings for a period of up to 15 years, depending on the sector.
- Exemption of imports to the importation of machinery, equipment and raw materials.
- Free zones with exceptional tax and logistics benefits.
- Special programs for technology, tourism, renewable energy and agribusiness, designed to reduce tax burden and facilitate operation.
In addition, investors have access to agile processes for permits, migratory procedures for executives and legal stability guaranteed by the Investment Law.
The Investment and Export Promotion Agency, Invest in El Salvadorleads the national investment attraction strategy. Its president, Rodrigo Ayala, highlights:
“We are building a new El Salvador, with clear rules, legal certainty and a proactive attitude towards foreign investment. Our commitment is to accompany the investor from the exploration of opportunities to the implementation of its operations.
In addition, El Salvador has a unique advantage in the continent: demand. Today, sectors such as tourism have a solid and sustained demand. Few markets can offer an environment where there is a latent and dynamic demand like ours. This fortress is not only limited to an industry; It is also manifested in other sectors that can attend both the local and the international market from operations located in our country. ”
Ayala emphasizes that trust is growing: “Today, El Salvador is not only competitive, it is reliable. We have implemented agile, clear and transparent mechanisms to facilitate investment. We are a country open to business, with a young, trained and motivated workforce.”
Aware of Mexico’s growing interest in expanding to Central America, Invest in El Salvador will organize a series of strategic events in the main Mexican cities during the second semester of 2025. The first of these activities will be a multisectoral investment forum, with the aim of connecting Mexican entrepreneurs with real opportunities in key sectors such as manufacturing, food and drinks, services, tourist infrastructure, among others.
These events will be the ideal opportunity to learn first hand the new business climate in El Salvador, establish alliances and explore commercial and investment synergies with Salvadoran companies.
El Salvador has ceased to be a promise to become a tangible reality of economic transformation. For Mexican entrepreneurs with regional vision, this country represents an efficient, safe and profitable platform to grow in Central America and beyond. With the support of Invest in El Salvador, the road to a successful expansion begins with a first step: explore the opportunities that this emerging country has to offer.
*Central Reserve Bank of El Salvador, April 2024.
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