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San Salvador at dusk with the San Salvador volcano behind the city

Why El Salvador

Why Invest in El Salvador

The advantages investors weigh and the costs they meet, one topic at a time, with every figure linked to its source.

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Why El Salvador

El Salvador’s Advantages

  • Location and market access

    Size, time zone, export markets and the air, sea and land links.

    21,040 km² Land area, with 14 departments and 44 municipalities

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  • Trade agreements (CAFTA-DR)

    CAFTA-DR, the EU and UK agreements, other FTAs and the 2026 US deal.

    1 March 2006 CAFTA-DR entered into force between El Salvador and the United States

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  • Workforce and bilingual talent

    Labour force, English skills, contact centres and minimum wages.

    3,128,852 Labour force in 2025 (people aged 16 and over working or looking for work)

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  • Infrastructure

    Ports, airports, roads, the electricity mix, water and digital links.

    USD 1,615 million Investment plan for the ports of Acajutla and La Unión over 50 years

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  • Quality of life

    Safety and its debate, the travel advisory, climate and daily life.

    1.3 per 100,000 Homicide rate in 2025 (82 homicides), as reported by the authorities

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  • The diaspora

    Salvadorans in the US, remittances, travel links and TPS.

    1.5 million People born in El Salvador living in the United States (2024)

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  • Tourism growth

    Visitor numbers, spending, origins and the Surf City programmes.

    4,123,892 International visitors in 2025 (tourists and day visitors)

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  • Development plans

    The 2026 public investment programme and the main public works.

    USD 3,077.5 million Public investment programme for 2026, as of July (270 projects)

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  • Cost of doing business

    Fees, wages, rents, utilities, fuel, internet and shipping, in US dollars.

    $408.80 Monthly minimum wage in commerce, services and industry, unchanged since 1 June 2025

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Compare

El Salvador and Its Neighbours: Taxes, Growth and Investment

Tax rates, growth, foreign investment and power prices in El Salvador and five other countries in the region, from the latest comparable data.

El Salvador compared with Guatemala, Honduras, Costa Rica, Panama and the Dominican Republic
Measure El Salvador Guatemala Honduras Costa Rica Panama Dominican Republic
Corporate income tax, 20261 30% 25% 25% 30% 25% 30%
Top personal income tax, 20262 30% 7% 25% 25% 25% 25%
Standard VAT or sales tax, 20263 13% 12% 15% 13% 7% 18%
Real GDP growth, 2026 projection4 4.5% 4.0% 3.3% 3.3% 5.0% 4.6%
GDP per capita, 20255 $5,751 $6,599 $3,598 $19,162 $19,814 $11,749
Foreign direct investment, 2025, USD million6 $764 $1,882 $1,396 $5,587 $938 $5,033
Industrial electricity, medium voltage, US cents per kWh, June 20257 21.72 15.59 17.95 17.37 18.12 –
  1. PwC Worldwide Tax Summaries: corporate income tax rates
  2. PwC Worldwide Tax Summaries: personal income tax rates
  3. PwC Worldwide Tax Summaries: VAT and sales tax rates
  4. IMF World Economic Outlook, October 2026: real GDP growth
  5. IMF World Economic Outlook, October 2026: GDP per capita
  6. ECLAC: Foreign Direct Investment in Latin America and the Caribbean, 2026
  7. ECLAC: electricity statistics of the SICA countries, 2024, Table 19

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