El Salvador and Its Neighbours: Comparison Tables
Taxes
| Tax, 2026 | El Salvador | Guatemala | Honduras | Costa Rica | Panama | Dominican Republic |
|---|---|---|---|---|---|---|
| Corporate income tax | 30% | 25% of net profits, or 7% of gross income (optional simplified regime) | 25%, plus a 5% surcharge on taxable income over HNL 1 million | 30% | 25% | 30% |
| Top personal income tax rate | 30% | 7% | 25% | 25% | 25% | 25% (27% from tax year 2027) |
| Standard VAT or sales tax | 13% | 12% | 15% (sales tax) | 13% | 7% (ITBMS) | 18% (ITBIS) |
Source: PwC Worldwide Tax Summaries: corporate income tax rates, quick chart; PwC Worldwide Tax Summaries: personal income tax rates, quick chart; PwC Worldwide Tax Summaries: VAT and sales tax rates, quick chart1,2,3
Headline rates only. Each country has reduced rates, exemptions and special regimes, such as free zones, that change the effective burden. For El Salvador, see Income Tax and VAT.
Minimum wages
| Country | Monthly minimum wage, 2026 | How it is set |
|---|---|---|
| El Salvador | $272.53 (agriculture) to $408.80 (commerce, services and industry) | By sector, in US dollars, since 1 June 2025 |
| Guatemala | Q3,471.10 to Q4,252.28, including the Q250 incentive bonus | By activity (agricultural, non-agricultural, export and maquila) and by two economic zones |
| Honduras | L9,596.64 to L19,298.72 | By branch of activity and company size, for 2026 and 2027 |
| Costa Rica | ₡373,092.30 (unskilled worker) to ₡796,921.00 (university graduate) | By occupation and qualification, from 1 January 2026 |
| Panama | Hourly rates by activity, region and company size; domestic work B/.320 to B/.350 a month | Executive Decree No. 13 of 31 December 2025 |
| Dominican Republic | RD$16,995.20 (micro companies) to RD$29,988.00 (large companies), private non-sectorised | By company size, from 1 February 2026; separate rates for free zones and other sectors |
Source: Executive Decree No. 11 of 2025: minimum wages from 1 June 2025 (Judicial Documentation Centre, PDF, in Spanish); Guatemala Ministry of Labour (MINTRAB): minimum wage 2026; Honduras Ministry of Labour (SETRASS): minimum wage table from 1 January 2026 (PDF, in Spanish); Costa Rica Ministry of Labour (MTSS): minimum wages 2026 (PDF, in Spanish); Official Gazette of Panama: Executive Decree No. 13 of 31 December 2025 on minimum wages; Panama Ministry of Labour (MITRADEL): minimum wage look-up; Dominican Republic National Wage Committee: Resolution CNS-01-2025, private non-sectorised minimum wage (PDF, in Spanish)4,5,6,7,8,9,10
Amounts are in each local currency; El Salvador and Panama use the US dollar. Exchange rates and sector rules make a single figure misleading, so check the rate for your activity. See Minimum Wages by Sector.
Electricity prices
| US cents per kWh, June 2025 | El Salvador | Guatemala | Honduras | Costa Rica | Panama | Dominican Republic |
|---|---|---|---|---|---|---|
| Commercial, medium voltage, 50,000 kWh a month | 21.72 | 15.59 | 17.95 | 17.37 | 18.17 | – |
| Industrial, medium voltage, 80,000 kWh a month | 21.72 | 15.59 | 17.95 | 17.37 | 18.12 | – |
| Residential, 200 kWh a month | 19.17 | 18.42 | 20.93 | 13.54 | 10.40 | – |
Source: ECLAC: Electricity statistics of the SICA countries, 2024, Table 19, tariffs in June 2025 (PDF, in Spanish)11
ECLAC compares the tariffs of the distributors that supply each capital (CAESS in El Salvador, EEGSA in Guatemala, ENEE in Honduras, ICE in Costa Rica, ENSA in Panama), without local taxes and municipal charges, and residential figures include subsidies. Other distributors in the same country can charge quite different prices. The Dominican Republic is not part of the Central American electricity market and is not in this table. See Electricity Prices.11
Economic growth
| Real GDP growth | El Salvador | Guatemala | Honduras | Costa Rica | Panama | Dominican Republic |
|---|---|---|---|---|---|---|
| 2024 | 2.6% | 3.7% | 3.6% | 4.1% | 2.7% | 5.0% |
| 2025 | 3.9% | 4.3% | 3.8% | 4.6% | 4.4% | 2.1% |
| 2026 (projection) | 4.5% | 4.0% | 3.3% | 3.3% | 5.0% | 4.6% |
Source: IMF DataMapper, World Economic Outlook (October 2026): real GDP growth12
Source: IMF DataMapper, World Economic Outlook (October 2026): real GDP growth12
IMF figures for 2025 can still be estimates for some countries, and 2026 is a projection. For El Salvador over time, see Economy in Charts.
Size of the economy and prices
Source: IMF DataMapper, World Economic Outlook (October 2026): GDP per capita, current prices13
| 2025 | El Salvador | Guatemala | Honduras | Costa Rica | Panama | Dominican Republic |
|---|---|---|---|---|---|---|
| GDP, USD billion | 36.7 | 123.3 | 39.6 | 102.9 | 90.5 | 127.9 |
| Inflation, average consumer prices | 0.3% | 1.6% | 4.6% | -0.1% | -0.1% | 3.9% |
Source: IMF DataMapper, World Economic Outlook (October 2026): GDP, current prices; IMF DataMapper, World Economic Outlook (October 2026): inflation, average consumer prices14,15
Foreign direct investment
| FDI inflows, USD million | El Salvador | Guatemala | Honduras | Costa Rica | Panama | Dominican Republic |
|---|---|---|---|---|---|---|
| 2024 | 1,051 | 1,729 | 478 | 5,403 | 2,086 | 4,523 |
| 2025 | 764 | 1,882 | 1,396 | 5,587 | 938 | 5,033 |
Source: ECLAC: Foreign Direct Investment in Latin America and the Caribbean, 2026, Table I.4 (PDF, in Spanish)16
Source: ECLAC: Foreign Direct Investment in Latin America and the Caribbean, 2026, Table I.4 (PDF, in Spanish)16
Inflows to El Salvador fell by about 27% in 2025, while Honduras almost tripled its inflows through intercompany loans and the Dominican Republic reached its highest figure on record. FDI includes reinvested earnings and loans between related companies, so a single year can move sharply. The trend since 2000 is in Economy in Charts.16
What is not compared
There is no current, comparable source for the time and cost of registering a company in all six countries since the World Bank stopped its Doing Business report, so this page does not rank them. For El Salvador, see Company Registration.
Figures come from different sources and dates, shown under each table. They are a starting point for comparison, not tax or investment advice.
Sources
- PwC Worldwide Tax Summaries: corporate income tax rates, quick chart
- PwC Worldwide Tax Summaries: personal income tax rates, quick chart
- PwC Worldwide Tax Summaries: VAT and sales tax rates, quick chart
- Executive Decree No. 11 of 2025: minimum wages from 1 June 2025 (Judicial Documentation Centre, PDF, in Spanish)
- Guatemala Ministry of Labour (MINTRAB): minimum wage 2026 (in Spanish)
- Honduras Ministry of Labour (SETRASS): minimum wage table from 1 January 2026 (PDF, in Spanish)
- Costa Rica Ministry of Labour (MTSS): minimum wages 2026 (PDF, in Spanish)
- Official Gazette of Panama: Executive Decree No. 13 of 31 December 2025 on minimum wages (in Spanish)
- Panama Ministry of Labour (MITRADEL): minimum wage look-up (in Spanish)
- Dominican Republic National Wage Committee: Resolution CNS-01-2025, private non-sectorised minimum wage (PDF, in Spanish)
- ECLAC: Electricity statistics of the SICA countries, 2024, Table 19, tariffs in June 2025 (PDF, in Spanish)
- IMF DataMapper, World Economic Outlook (October 2026): real GDP growth
- IMF DataMapper, World Economic Outlook (October 2026): GDP per capita, current prices
- IMF DataMapper, World Economic Outlook (October 2026): GDP, current prices
- IMF DataMapper, World Economic Outlook (October 2026): inflation, average consumer prices
- ECLAC: Foreign Direct Investment in Latin America and the Caribbean, 2026, Table I.4 (PDF, in Spanish)
Facts checked 9 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.