Tourism Law Incentives in El Salvador
The incentives
- Property transfer tax: exemption on the purchase of the land or buildings for the project.
- Import duties: exemption on goods, equipment, machinery, vehicles, aircraft or boats for coastal service and construction materials, until the project is completed. The amount exempted cannot exceed 100% of the capital invested.
- Income tax: exemption for 10 years from the start of operations. It ends earlier if the tax exempted reaches the value of the qualified project.
- Municipal taxes: partial exemption of up to 50% on taxes linked to the tourism activity, for 5 years from the start of operations, requested from the municipality.
Source: Tourism Law, consolidated text (Ministry of Finance, PDF, in Spanish)1
An expansion, improvement or remodelling of at least 20% of the initially approved investment extends the income tax exemption by another 10 years from its qualification. This extension can be requested once.1
How a project is qualified
- The company is registered in the National Tourism Registry and applies to MITUR using the model letters published by the ministry.
- MITUR grants or refuses the qualification by ministerial agreement.
- For investments above USD 50,000, MITUR also needs a favourable opinion from the Ministry of Finance, the Ministry of Environment and Natural Resources and the culture authority.
- For the municipal relief, the company then presents its registration, the qualification agreement and its income tax return to the municipality.
Source: Tourism Law, consolidated text (Ministry of Finance, PDF, in Spanish); Ministry of Tourism (MITUR): model application letters for qualification1,4
The application window
Article 36 is a transitional provision: the incentives can be requested during a period of five years. The Assembly has extended that period by separate decrees, for example by five years from 1 January 2016. The consolidated text published by the Ministry of Finance shows that extension running until 1 January 2021 and lists no later one.1,2
MITUR still publishes the application requirements and model letters, and the 2026 US Investment Climate Statement still lists the incentives. Before you plan around them, ask MITUR in writing whether the window is open on the date you will apply.4,3
Frequently Asked Questions
What tax incentives does the Tourism Law offer?
A Project of National Tourist Interest can receive a 10-year income tax exemption, property transfer tax and import duty exemptions, and up to 50% relief on municipal taxes for 5 years.
What is the minimum investment for a tourism project?
The new tourism investment must be USD 25,000 or more and be qualified by the Ministry of Tourism (MITUR).
Do beneficiaries contribute to tourism promotion?
Yes. During the exemption, beneficiaries contribute 5% of their profits to tourism promotion.
Sources
- Tourism Law, consolidated text (Ministry of Finance, PDF, in Spanish)
- Decree No. 88 of 14 August 2015 extending the article 36 period (Legislative Assembly, PDF, in Spanish)
- US Department of State: 2026 Investment Climate Statement, El Salvador
- Ministry of Tourism (MITUR): model application letters for qualification (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.
