Cost of Doing Business in El Salvador
The main costs at a glance
| Cost | Typical amount | Guide |
|---|---|---|
| Registering a S.A. de C.V. with $2,000 capital | About $154 in registry fees; a S.A.S. is free until 31 December 2026 | Start-up costs |
| Registry fees | $0.57 per $100 of capital for the deed; annual licence from $91.43 | Company registration fees |
| Health and municipal permits | Health authorisations from $40 to $110; municipal fees vary | Permit costs |
| Salaries | Average $437.39 a month; professionals $819.83 | Salaries by role |
| Minimum wages | $272.53 to $408.80 a month, by sector | Minimum wages by sector |
| Office space in San Salvador | Asking rents of about $15 to $26 per m² a month in listings | Office rents |
| Free zone and service park space | $2.25 to $4.80 per m² a month, according to INVEST | Free zone and service park space |
| Housing | Median rent $1,875 a month in San Salvador (CAF yearbook 2025) | Residential rents |
| Electricity | $0.19 to $0.24 per kWh for large business users | Electricity |
| Water | $0.41 to $1.82 per m³ for businesses, plus sewerage | Water (ANDA) |
| Fuel | Diesel $4.86 and regular petrol $4.80 a gallon | Fuel |
| Internet | Entry-level fibre about $25 a month (ITU, 2025) | Telecoms and internet |
| Shipping to the United States | About 6 days by sea from Acajutla to Long Beach | Logistics to US ports |
Source: Executive Decree No. 11 of 2025: minimum wage rates (PDF, in Spanish); Central Reserve Bank: Multipurpose Household Survey (EHPM) 2025 (PDF, in Spanish); pv magazine Latin America: Osinergmin study of electricity tariffs in Latin America, third quarter of 2026; El Salvador.com: fuel prices unchanged until 9 November 2026; INVEST: Investor Guide El Salvador, 2025 edition (PDF, in Spanish); INVEST: Investor’s Guide El Salvador 20241,2,3,4,5,6
What to budget on top of salaries
- Social security: 7.5% ISSS on salary up to $1,000 a month and 8.75% AFP pension on total salary.
- Training levy: 1% to INCAF (formerly INSAFORP) for employers with ten or more staff.
- Year-end bonus (aguinaldo): 15 to 21 days of salary each December, depending on years of service.
- Paid holiday: 15 days a year with a 30% supplement.
- January payment: since 2026, half a month’s salary each January for employees earning up to $1,500.
Source: INVEST: Investor Guide El Salvador, 2025 edition (PDF, in Spanish); PwC Worldwide Tax Summaries: El Salvador, significant developments5,7
INVEST, the government investment agency, puts these employer costs at 22.67% of the gross salary, or up to 31% with a provision for severance or resignation pay. That estimate predates the January payment.5
Costs that are rising
- Electricity: the wholesale price of power rose about 125% in the first half of 2026, and the central bank’s producer price index shows energy costs for businesses up 23.10% in the year to September 2026. Distributors say tariffs have not been raised in 2026.
- Property: warehouse rents rose about 40% in five years to 2024, and El Salvador had the highest median house prices in a 2025 regional housing yearbook.
- Fuel: reference prices have been unchanged for six weeks to 9 November 2026, but they follow world oil prices every two weeks.
Source: Diario El Mundo: power generation cost up 125% in the first half of 2026; Infobae: energy costs for Salvadoran companies up 23% in a year, BCR data; El Salvador.com: electricity tariffs stable in 2026, say distributors; Diario El Mundo: warehouse rents up 40% in five years; La Prensa Gráfica: El Salvador has the highest housing prices in the region, CAF yearbook8,9,10,11,12
Frequently Asked Questions
What currency are costs quoted in?
Every cost in El Salvador is quoted in US dollars, so there is no currency risk for dollar-based investors.
How much does labour cost in El Salvador?
The highest minimum wage is $408.80 a month, and the average wage of employed people was $437.39 in 2025.
How much does electricity cost for businesses?
Business electricity costs around $0.19 to $0.24 per kWh, and wholesale power prices rose sharply in 2026.
The costs, one by one
Start-up costs
About $154 in registry fees for a S.A. de C.V.; a S.A.S. is free until the end of 2026.
$154.29 Registry fees for a S.A. de C.V. with $2,000 capital, according to INVEST
Read more
Company registration fees
Deed fees by capital, branch fees and the yearly register renewal.
$0.57 Fee per $100 of capital to register a company deed, up to $11,428.57
Read more
Permit costs
Health authorisations from $40, food registration $35, municipal fees by locality.
$40–110 Ministry of Health sanitary authorisation for a non-food industry, by investment
Read more
Salaries by role
Average $437.39 a month; managers $1,053.09 and professionals $819.83.
$437.39 Average monthly salary of employed people, 2025
Read more
Minimum wages by sector
$408.80 a month in commerce, services and industry since June 2025.
$408.80 Monthly minimum wage in commerce, services, industry, sugar mills and agro-industry
Read more
Office rents
Corporate towers at about $21.50 to $26 per m² a month, plus VAT.
$23 Asking rent per m² a month, Torre Insigne, San Benito, plus VAT
Read more
Free zone and service park space
$2.25 to $4.80 per m² a month in free zones and service parks, according to INVEST.
$2.25–4.80 Industrial space per m² a month in free zones and service parks, INVEST 2024 guide
Read more
Residential rents
Median rent $1,875 a month in San Salvador, CAF 2025 yearbook.
$1,875 Median monthly rent in San Salvador, CAF and Lincoln Institute yearbook 2025
Read more
Electricity
About $0.24 per kWh for commerce and $0.19 for industry, third quarter of 2026.
$0.2408 Per kWh for a commercial user of 50,000 kWh a month, third quarter of 2026
Read more
Water (ANDA)
From $0.41 to $1.822 per m³ for businesses, plus a sewerage charge.
$3.76 Minimum monthly charge for a business, up to 5 m³
Read more
Fuel
Diesel $4.86 and regular petrol $4.80 a gallon, 27 October to 9 November 2026.
$4.86 Diesel per gallon, reference price, 27 October to 9 November 2026
Read more
Telecoms and internet
Business broadband from $23 a month; median fixed speed 165 Mbps.
$25 Fixed broadband price basket, ITU 2025 (80 Mbps fibre, unlimited data)
Read more
Logistics and transport to US ports
About six days by sea from Acajutla to Long Beach; East Coast cargo goes via Guatemala or Honduras.
6 days Sea transit from Acajutla to Long Beach, according to INVEST
Read more
Sources
- Executive Decree No. 11 of 2025: minimum wage rates (PDF, in Spanish)
- Central Reserve Bank: Multipurpose Household Survey (EHPM) 2025 (PDF, in Spanish)
- pv magazine Latin America: Osinergmin study of electricity tariffs in Latin America, third quarter of 2026 (in Spanish)
- El Salvador.com: fuel prices unchanged until 9 November 2026 (in Spanish)
- INVEST: Investor Guide El Salvador, 2025 edition (PDF, in Spanish)
- INVEST: Investor’s Guide El Salvador 2024 (PDF)
- PwC Worldwide Tax Summaries: El Salvador, significant developments
- Diario El Mundo: power generation cost up 125% in the first half of 2026 (in Spanish)
- Infobae: energy costs for Salvadoran companies up 23% in a year, BCR data (in Spanish)
- El Salvador.com: electricity tariffs stable in 2026, say distributors (in Spanish)
- Diario El Mundo: warehouse rents up 40% in five years (in Spanish)
- La Prensa Gráfica: El Salvador has the highest housing prices in the region, CAF yearbook (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.
