Software and IT in El Salvador
What is done here
- Nearshore software development and quality assurance for clients in the United States, often run from the same companies that provide contact centre services.
- IT support and managed services, from help desks to cloud and network operations.
- Data centres: DataTrust, part of Grupo Aristos, runs a commercial data centre certified Tier III at Altius Tech Park, Ciudad Arce, on the road to Santa Ana, powered by the group’s own solar parks.
- Digital government: Google opened an office in San Salvador in April 2024 under a seven-year agreement with the government worth at least USD 500 million, covering digital government, health and education.
Source: INVEST: software development sector; DataTrust: data centre at Altius Tech Park; La Prensa Gráfica: Google opens its office in El Salvador, April 20241,5,6
Incentives
| Law | Who it is for | Main benefit |
|---|---|---|
| International Services Law | IT and software services exported from a service park or service centre | Income tax, municipal tax and import duty exemptions |
| Innovation and technology manufacturing law (2023) | New investments in software, cloud, AI, cybersecurity, hardware and other technology activities | 15 years without income tax, municipal tax on net assets, capital gains tax or import duties; at least 5% of the operating budget must go to research and development |
| Free Zones Law | Technology manufacturing for export | Exemptions for companies inside a free zone |
Source: INVEST: Law for the Promotion of Innovation and the Manufacture of Technologies, English translation; PwC Worldwide Tax Summaries: El Salvador, tax credits and incentives4,7
The regimes cannot be combined: a company already using the free zones or the International Services Law cannot also use the technology law.4
Startups
El Salvador entered the StartupBlink Global Startup Ecosystem Index in 2026 in 80th place. In July 2026 the fintech Ábaco Technologies announced a USD 53 million round. The startups and venture capital guide covers the funds and accelerators.8,9
Frequently Asked Questions
How large are El Salvador’s IT services exports?
Exports of telecommunications, computer and information services reached USD 328 million in the first three quarters of 2025, up 6.7%, according to INVEST.
How much foreign investment is in technology?
Information and communications held 11% of the foreign direct investment stock at the end of 2024.
What tax incentives do technology companies have?
They can apply for 15 years of tax exemptions under the 2023 Law for the Promotion of Innovation and the Manufacture of Technologies.
Sources
- INVEST: software development sector
- Diario El Mundo: El Salvador is the third country in the region by services exports, SIECA (in Spanish)
- INVEST: investor guide El Salvador 2025 (PDF, in Spanish)
- INVEST: Law for the Promotion of Innovation and the Manufacture of Technologies, English translation (PDF)
- DataTrust: data centre at Altius Tech Park
- La Prensa Gráfica: Google opens its office in El Salvador, April 2024 (in Spanish)
- PwC Worldwide Tax Summaries: El Salvador, tax credits and incentives
- Infobae: El Salvador among the 10 Latin American countries in the StartupBlink index (in Spanish)
- Infobae: Ábaco Technologies raises USD 53 million (23 July 2026, in Spanish)
Figures 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.
