TKEG Expat ™ Business Guide

Republic of El Salvador

Corporate Services in El Salvador
Dollarized Economy

Since 2001, El Salvador has adopted the U.S. dollar as its legal currency. This provides foreign investors with a stable monetary environment, eliminating exchange rate risks and enhancing predictability. The dollarized economy makes international trade and investment operations easier for multinational companies.

Free Trade Agreements and Access to Regional Markets

El Salvador has signed several free trade agreements, including the Central America Free Trade Agreement (CAFTA-DR) with the U.S., as well as agreements with the European Union, Mexico, and Colombia. These agreements provide easy access for Salvadoran products and services to major international markets.

Manufacturing and Outsourcing Hub

El Salvador boasts a relatively low-cost yet skilled labor force, especially in manufacturing and outsourcing industries. In particular, it attracts foreign companies in sectors like textiles, garment manufacturing, and business process outsourcing (BPO), where many firms have established factories and service centers.

Strategic Geographic Location

Positioned centrally in Central America, El Salvador enjoys a convenient geographical location close to both the U.S. and South American markets. This strategic position makes it a hub for international trade and logistics, with strong air and sea transportation links that enable rapid connection to key markets.

Tax Info

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Administrative Regions

AH - Ahuachapán Department
CA - Cabañas Department
CH - Chalatenango Department
CU - Cuscatlán Department
LI - La Libertad Department
MO - Morazán Department
PA - La Paz Department
SA - Santa Ana Department
SM - San Miguel Department
SO - Sonsonate Department
SS - San Salvador Department
SV - San Vicente Department
UN - La Unión Department
US - Usulután Department

Belonging Jurisdiction

Republic of El Salvador
SV - El Salvador
Republic of El Salvador
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Union of South American Nations
USAN - Union of South American Nations
Union of South American Nations
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Earth
WORLD - Global
Earth
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