Legal Stability Agreements in El Salvador
What the contract guarantees
- National taxes: stability of the legal regime of the taxes in force.
- Municipal taxes: stability of the municipal tax regime in force.
- Exemptions under special laws, for the term granted by the institution in charge.
- Customs regimes: duty drawback, suspensive and similar regimes under special laws.
- Transfers abroad of funds from foreign investments, under the Investment Law.
- Migration: the residence regime of the investor.
Source: INVEST: Legal Stability Law for Investments, English translation1
Strategic sectors
Aeronautics, agro-industry, aquaculture, electronics, energy, strategic infrastructure, logistics, health services, remote business services, tourism, telecommunications, diverse manufacturing, and science and technology. New sectors can be added on the basis of technical studies.1
Investment and term
| Fixed-asset investment, in industry minimum monthly wages | Maximum contract term |
|---|---|
| 4,220 to 21,100 | Up to 5 years |
| 21,101 to 42,200 | Up to 10 years |
| Above 42,200 | Up to 20 years |
Source: INVEST: Legal Stability Law for Investments, English translation; INVEST: tax incentives and benefits (PDF, in Spanish)1,3
The investment can be a new project or an expansion of an existing one. The contract is effective when signed, but its term counts from the date the investment starts to be made.1
How to apply
- Submit the application on the official form to the investment promotion agency named in the law (PROESA, whose role INVEST now carries out).
- Once approved, the agency sends the file to the Ministry of Economy within 10 working days to prepare the contract.
- The investor signs the contract within 15 working days of that referral.
- The investor then has 2 years to start the investment, extendable once for the same period with a justification.
- The procedures for signing, changing and ending contracts are in the regulation, Executive Decree No. 92 of 2015.
Source: Decree No. 905 of 18 December 2014, Legal Stability Law for Investments (Judicial Documentation Centre, PDF, in Spanish); Regulation of the Legal Stability Law, Executive Decree No. 92 (Transparency Portal, PDF, in Spanish)2,4
The first contract under the law was signed with the company Ventus.5
Frequently Asked Questions
What is a legal stability contract in El Salvador?
A contract with the Ministry of Economy that freezes the tax, customs and migration rules applying to an investment when it is signed. It does not create new exemptions.
How long does legal stability last?
5, 10 or 20 years depending on the size of the investment. The longest term is for investments above 42,200 minimum wages.
What is the minimum investment?
The minimum investment in fixed assets is 4,220 industry minimum monthly wages, in a strategic sector.
Sources
- INVEST: Legal Stability Law for Investments, English translation (PDF)
- Decree No. 905 of 18 December 2014, Legal Stability Law for Investments (Judicial Documentation Centre, PDF, in Spanish)
- INVEST: tax incentives and benefits (PDF, in Spanish)
- Regulation of the Legal Stability Law, Executive Decree No. 92 (Transparency Portal, PDF, in Spanish)
- Chambers and Partners: first legal stability agreement for investments in El Salvador
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.
