International Services Law in El Salvador
The benefits
Beneficiaries receive the same exemptions as companies in a free zone: income tax, VAT and municipal tax exemptions, property transfer tax relief on land for the activity, and duty free imports of the machinery, equipment and inputs they need. See the Free Zones Law for the details.1
Service centres and service parks
- Service centres (centros de servicios): companies qualified under the law, with their requirements in article 24-A.
- Service parks (parques de servicios): parks created under the law for service companies, with the requirements for the companies inside them in article 23. Consortium Legal notes that no service parks were operating in El Salvador when the latest reform was published.
- One or more activities: the reformed article 5 lets a company carry out several incentivised activities, provided it meets the highest investment and employment requirement among them.
Source: Consortium Legal: Reforms to the International Services Law and the Free Trade Zones Law in El Salvador2
Minimum investments
| Activity | Service centre (art. 24-A) | Service park company (art. 23) |
|---|---|---|
| Business process services | USD 250,000, within the first 6 months | USD 150,000, within the first 6 months |
| Information technology and film | USD 250,000, within the first 6 months | Not listed |
| Medical and hospital services | USD 2,000,000, within the first year | USD 1,000,000, within the first year |
| Elderly and convalescent care | USD 500,000, within the first year | USD 250,000, within the first year |
| Specialised aircraft services | USD 500,000, within the first year | Not listed |
Source: Consortium Legal: Reforms to the International Services Law and the Free Trade Zones Law in El Salvador; Dirección General de Aduanas: International Services Law, consolidated text with Decree 497 of 14 January 2026 (PDF, in Spanish)2,4
In a service park, at least 10 permanent jobs must be created within the first year of operations. Service centres may also reach their minimum number of permanent hires during the first year.2
Points to check
- Companies that already use this regime or the Free Zones Law cannot also apply for the innovation and technology manufacturing law.
- The investment amounts are minimum investments in assets, not share capital.
- Each activity has its own specific requirements on top of the investment and jobs thresholds.
Source: INVEST: Law for the Promotion of Innovation and the Manufacture of Technologies, English translation; Consortium Legal: Reforms to the International Services Law and the Free Trade Zones Law in El Salvador3,2
Frequently Asked Questions
What does the International Services Law offer?
Companies that export services receive the same benefits as the Free Zones Law, including income tax, VAT and municipal tax exemptions, if they operate as a service centre or inside a service park.
What is the minimum investment for a service centre?
A service centre in business process services, IT or film needs a minimum investment in assets of USD 250,000.
How many jobs does a company in a service park need?
A company in a service park needs at least 10 permanent jobs within the first year of operations.
Sources
- PwC Worldwide Tax Summaries: El Salvador, tax credits and incentives
- Consortium Legal: Reforms to the International Services Law and the Free Trade Zones Law in El Salvador
- INVEST: Law for the Promotion of Innovation and the Manufacture of Technologies, English translation (PDF)
- Dirección General de Aduanas: International Services Law, consolidated text with Decree 497 of 14 January 2026 (PDF, 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.
