Investing in San Salvador

How San Salvador scores on each pillar

Eight pillars, each normalized to 0 to 100 by a fixed published rule. A dash means the source does not cover San Salvador, which is not the same as a zero. Coverage of the weighted index for this city is 100%.

Swipe the table sideways for the reported value, the weights and the source.

What a foreign shareholder pays in El Salvador

Corporate income tax plus the standard non-treaty withholding on the dividend paid out of what is left, which is the figure that actually reaches an owner abroad.

El Salvador taxes on a territorial basis, so income sourced outside the country is generally outside the net, which matters a great deal to a holding structure. Territorial: foreign-source income is not taxed. Free Zone Law exempts income tax, VAT and import duties, and the 2023 Technology and Manufacturing Innovation Law grants a 15-year income tax exemption.

Context, published but not scored

These shape a decision without belonging in the index. FDI inflows track the size of an economy rather than the appeal of a city, and a sovereign rating measures a government's ability to repay debt rather than a company's ability to operate.

Where El Salvador has moved since 2021

The rule of law pillar is the only one of the eight with a series comparable across five editions, so it is the only place this profile shows a direction rather than a snapshot. Scores are national, 0 to 1, higher is better.

Over the period El Salvador weakened, -0.057 points. A move under 0.005 is reported as flat rather than as a trend. Compare all 10 economies.

Sectors with a documented presence

Where El Salvador's inbound FDI comes from

National statistics, share of inbound foreign direct investment.

• Panama39.6%
• United States20.3%
• Honduras15.4%
• Mexico8.4%
• Other16.3%

Banco Central de Reserva, 2025 net flows. Shares are of positive contributions; Spain recorded a net outflow of USD 160 M that year.