High-Rise Real Estate Incentives in El Salvador
What is exempt
- Profits from the first sale of apartments, offices, shops and other units in the building.
- Rentals for tourism or commercial use by the original owner or initial investor.
- Hotel and hospitality services run by the project owner.
- Construction services for the project.
- Dividends and profits paid to partners or shareholders from these activities. When the shareholder is itself a company, the benefit stops there and does not pass on to its own shareholders.
Source: Special provisions for high-rise real estate projects, text (Judicial Documentation Centre, PDF, in Spanish); PwC Worldwide Tax Summaries: El Salvador, tax credits and incentives1,2
The exemption continues if the owners convert the building to another use during the 15 years, for example from offices to a hotel or the reverse.1
What is not covered
- People who buy apartments, offices or commercial units in the building, or who provide services there.
- Tenants who rent or sublet units.
- Rentals by anyone other than the original owner or initial investor.
Source: Special provisions for high-rise real estate projects, text (Judicial Documentation Centre, PDF, in Spanish)1
How to apply
- At least 30 days before construction starts, notify the tax authority (DGII) in writing with the project name and location, height, the owners and their shareholders, the investment or the value of the services, and the completion date.
- The DGII issues a resolution declaring the beneficiary within 10 days.
- The provisions prevail over other laws on tax exemptions or incentives, and the Ministry of Finance may issue resolutions on how they apply.
Source: Special provisions for high-rise real estate projects, text (Judicial Documentation Centre, PDF, in Spanish)1
The planning office of the San Salvador metropolitan area, OPAMSS, has reported that five investors were interested in buildings of more than 35 storeys.4
Frequently Asked Questions
Which buildings qualify for the high-rise incentive?
New investments in buildings of 35 storeys or more, under special provisions approved by the Legislative Assembly on 23 September 2024.
How long is the income tax exemption?
15 years, from the tax year in which the project starts earning income.
Do buyers of apartments benefit?
No. The exemption covers the developer, its shareholders on dividends from the project and the construction companies, but not buyers or tenants.
Sources
- Special provisions for high-rise real estate projects, text (Judicial Documentation Centre, PDF, in Spanish)
- PwC Worldwide Tax Summaries: El Salvador, tax credits and incentives
- Legislative Assembly: approval of incentives for high-rise buildings (in Spanish)
- El Mundo: five investors interested in buildings of more than 35 storeys, says OPAMSS (in Spanish)
Figures checked 8 November 2026. Prepared by InvestSalvador.com for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.
