Free Zone Entry Requirements in El Salvador
The thresholds
| Applicant | Requirement | Legal basis |
|---|---|---|
| Producer in a free zone | USD 500,000 in fixed assets within the first 2 years, or 50 permanent jobs from the first year | Art. 17-A |
| Trader in a free zone | 5 permanent jobs from the first year | Art. 17-A |
| Greenhouse or laboratory in a free zone | All of: USD 100,000 in fixed assets in the first year, 15 permanent jobs, 5,000 m² (greenhouses) or 1,000 m² (laboratories) and a formal administrative and financial structure | Art. 17-A |
| DPA producer | USD 800,000 in fixed assets within the first 2 years (buying existing buildings does not count), or 75 permanent jobs from the first year | Art. 19-A |
| DPA trader | 15 permanent jobs from the first year | Art. 19-A |
| DPA for amphibians and reptiles in captivity | All of: USD 100,000 in the first year, 15 permanent jobs and a formal structure | Art. 19-B |
Source: Dirección General de Aduanas: Free Zones Law, consolidated text with Decree 493 of 23 December 20251
The eRegulations portal of El Salvador gives the same producer rule: at least one of USD 500,000 in fixed assets within two years or 50 permanent jobs from the first year.2
If the company falls short
- Investment not reached: MINEC revokes the authorisation.
- Jobs not reached: MINEC suspends the benefits until the company complies, and the company pays import taxes and other taxes during the suspension. The suspension does not stop the clock on the total benefit period.
- In both cases MINEC informs the Ministry of Finance at once.
Source: Dirección General de Aduanas: Free Zones Law, consolidated text with Decree 493 of 23 December 20251
Who cannot apply
- Companies in the excluded activities: oil, gas and fuels, cement, scrap metal, mining products, explosives, polluting goods, sugar, alcohol (outside the allowed cases), synthetic sacks, food supply to employees and machinery leasing.
- People or companies whose benefits under the law were suspended or revoked, and companies whose directors, legal representatives or shareholders held those roles in such companies.
- Companies that operated in the national customs territory and paid income tax there before applying, a rule the December 2025 reform made broader.
Source: Dirección General de Aduanas: Free Zones Law, consolidated text with Decree 493 of 23 December 2025; Deloitte: reforms to the Free Zones Law of El Salvador, January 20261,3
The application
- The legal representative or an authorised attorney files the application with MINEC.
- The application states the activity, the customs regime chosen (free zone or DPA), the general features of the company and its legal documents, plus anything the regulations add.
- MINEC must decide within 25 working days for a free zone user and 35 working days for a DPA. The deadline includes the opinion of the Ministry of Finance; if Finance does not reply, MINEC decides.
- The authorisation is a ministerial agreement published in the Diario Oficial, and the tax periods run from that publication.
- A user that keeps its activity and wants to expand, reduce or move within the same zone files a note signed by its legal representative, with the signature certified by a notary, the site plan and the lease or deed. MINEC answers within 10 working days.
- A user can ask MINEC to change to a DPA, or the other way round, if it meets the requirements.
Source: Dirección General de Aduanas: Free Zones Law, consolidated text with Decree 493 of 23 December 20251
INVEST says the time to authorise a free zone company was cut from 270 days to 15 days. The deadlines in the law are maximums.4
Frequently Asked Questions
What are the requirements to become a free zone user?
A producer must invest USD 500,000 in fixed assets within its first two years, or create 50 permanent jobs from its first year. Traders need 5 permanent jobs.
What does an inward processing warehouse (DPA) need?
A DPA outside a zone needs an initial investment of USD 800,000 or 75 permanent jobs.
How long does MINEC take to decide?
MINEC must decide within 25 working days for a free zone user and 35 working days for a DPA.
Sources
- Dirección General de Aduanas: Free Zones Law, consolidated text with Decree 493 of 23 December 2025 (in Spanish)
- eRegulations El Salvador: service centres, parks and free zones (in Spanish)
- Deloitte: reforms to the Free Zones Law of El Salvador, January 2026 (in Spanish)
- INVEST: Investor Guide El Salvador, 2025 edition (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.
