El Salvador: The New Emerging Investment Destination in Central America

For forward-thinking Mexican entrepreneurs, El Salvador represents an efficient, safe, and profitable platform for growth across Central America and beyond. In recent years, El Salvador has undergone a significant transformation in its economic, legal, and security environment, positioning itself as one of the most attractive emerging destinations for foreign investment in Latin America. For those looking to diversify markets, optimize costs, and access efficient logistics platforms, El Salvador offers a strong value proposition, with strategic incentives and a steadily evolving business climate.

Its strategic location in the heart of the continent provides direct access to major markets across the Americas. From San Salvador, more than 30 destinations throughout the region can be reached within hours via air travel, thanks to a robust regional air network. Furthermore, the country’s port and land infrastructure are being modernized to streamline the movement of goods to North, South America, and Europe.

These events represent an ideal opportunity to experience El Salvador’s new business climate firsthand, forge strategic partnerships, and explore commercial and investment synergies with Salvadoran companies.

El Salvador is no longer just a promise—it is now a tangible example of economic transformation. For Mexican entrepreneurs with a regional outlook, the country represents a secure and profitable launchpad for expansion across Central America and beyond. With the support of Invest in El Salvador, the journey toward successful expansion begins with a single step: exploring the opportunities this emerging market has to offer.

Source: Central Reserve Bank of El Salvador, April 2024.

Preferential Access to International Markets

El Salvador has more than 13 trade agreements providing preferential access to over 1.2 billion consumers. These include CAFTA-DR, the Association Agreement with the European Union, and the Free Trade Agreement with Mexico. Negotiations are currently underway for additional agreements with China, Mercosur, and Belize, opening the door to strategic commercial integration.

Enhanced Legal and Citizen Security

El Salvador has made historic strides in both legal and public safety. A dramatic reduction in crime rates has restored confidence among business sectors. In 2023, the country recorded its lowest homicide rate in decades, increasing its appeal to new investors thanks to political and civic stability rarely seen in the region.

Economic Growth and Expanding Foreign Investment

El Salvador reported a GDP growth rate of 2.26% in 2023. Foreign direct investment (FDI) stock grew by 5.6% year-over-year, and the inflow of new investments increased by 272% over the past two years. Key sectors showing strong growth include tourism, construction, manufacturing, and technology.

Competitive Incentives for Strategic Sectors

El Salvador offers a robust framework of incentives designed to attract investment in key industries. These include:

• Income, dividend, and withholding tax exemptions for up to 15 years depending on the sector.
• Exemptions on the importation of machinery, equipment, and raw materials.
• Free Trade Zones offering exceptional fiscal and logistical benefits.
• Special programs for technology, tourism, renewable energy, and agribusiness designed to lower tax burdens and streamline operations.
• Fast-track permit processes, executive visa facilitation, and legal certainty guaranteed under the Investment Law.

Institutional Support: Invest in El Salvador

The Investment and Export Promotion Agency, Invest in El Salvador, leads the national investment attraction strategy. Its president, Rodrigo Ayala, emphasizes:

“We are building a new El Salvador—with clear rules, legal security, and a proactive attitude toward foreign investment. Our commitment is to support investors from opportunity discovery to full operational launch.”

Ayala also highlights one of the country’s unique advantages: demand.

“Today, sectors like tourism enjoy solid and sustained demand. Few markets can offer an environment with such dynamic latent demand. This strength is not limited to one industry—it extends across sectors that can serve both local and international markets from El Salvador.”

He adds:

“El Salvador is not just competitive—it’s reliable. We’ve implemented transparent, agile mechanisms to facilitate investment. We’re a business-friendly nation with a young, skilled, and motivated workforce.”

Upcoming Events in Mexico: A Direct Gateway to El Salvador

Acknowledging Mexico’s growing interest in expanding into Central America, Invest in El Salvador will organize a series of strategic events in major Mexican cities during the second half of 2025. The first event will be a multisector investment forum, aimed at connecting Mexican entrepreneurs with real opportunities in key sectors such as manufacturing, food and beverages, services, and tourism infrastructure.