Investment Opportunities

Tourism

With high political stability, the tourism sector is rapidly growing and El Salvador is currently considered one of the trendiest destinations on the globe. The country offers diverse options to suit all travelers’ tastes, including Mayan ruins and other archaeological sites; breathtaking beaches, landscapes and national parks, as well as active volcanoes; and journeys ranging from extreme adventures to visits to quaint villages. Major investments in the tourism sector are in progress to strengthen the country’s position as a major tourism destination – particularly in beachfront locations, such as El Tunco, also referred to as “Surf City”, which is among the world’s top five surfing destinations. 

Infrastructure

Under the current Government of El Salvador has launched an ambitious infrastructure enhancement program, leveraging public-private partnerships.

Among the country’s infrastructure projects are:  

  • Expansion and diversification of energy production, in particular from hydro-electrical, geothermic, wind, solar and biomass sources
  • Establishment of the new “Bitcoin City”, including an airport, housing, restaurants, shops, infrastructure, etc., as well as a geothermal power plant to use the nearby volcano to help offset Bitcoin’s massive carbon footprint
  • Expansion of Surf City, including road infrastructure, an amusement park, tourist view points and a viaduct
  • Expansion of air cargo capacities
  • Highway illumination and safety
  • Modernization of government buildings
  • Establishment of a technology park
  • Upgrade of border crossings
  • Road network improvements
  • Internal and international rail network enhancement, as part of a new Pacific-Caribbean overland route
  • Construction of a new port and airport in La Union
Agribusiness
 
El Salvador offers good conditions to develop agribusinesses due to its strategic location in the tropics and diversity of micro-climates Investment Opportunities: 
  • Processed food
  • Aquaculture
  • Ornamental plants
  • Fruit-growing sector
 

Advantages of investing in the field:

  • Adequate climatic conditions (temperature and altitude) and suitable soils for the cultivation of fruits and ornamental plants.
  • Excellent road and port infrastructure.
  • Proximity to high consumption markets, facilitating the export of fresh products.
  • Free trade agreements that provide favorable conditions to access the main markets of America and Europe.
  • Abundant supply of sugar for intensive industries (beverages, sweets, etc.). It is possible to negotiate contracts of up to five years with a fixed price.
  • Availability of water resources for the sustainable development of aquaculture.
Energy
 
El Salvador, due to its unique characteristics, is a fantastic location for Energy and LNG hub for the Central America region. 
 
The Investment opportunities in these field is diverse, considering the country as a platform for power supply generation for renewable resources: 
  • Hydroelectric
  • Geothermal
  • Wind
  • PV Solar and Thermal Solar
  • Biomass and biogas
  • LNG

 

Investment opportunities in the energy sector can be considered, among others, under the following operational models:

  • Generation for energy supply in the spot market, in which non-conventional renewable generators (solar and wind) have supply priority.
  • Bilateral contracts agreed directly between the generator and the distributor.
  • Distributed generation projects at an industrial level. 
Light Manufacturing
 
El Salvador offers a successful export platform with geographic proximity, high productivity and competitive costs. 
Investment Opportunities in the field: 
 
  • Auto parts: harnesses, clothing automotive, security system and sensors)
  • Electronic components: ceramic and tantalum electronic capacitors, transistors, resistors, etc.
  • Manufacturing, assembly and reconditioning.
  • Logistics center: El Salvador is in a natural location for those companies that want to serve the region’s market, which has a population of 40 million people.
Technological Services
 
El Salvador can offer a cost effective near-shore location with exceptional performance in the field of technology services.  
 
Investment Opportunities: 
  • Contact centers
  • Business processing services
  • IT services
 
Main Advantages:
  • Excellent performance in industry results indicators, standing out in:
    *Sales (differentiating skill of the Salvadoran)
    *Customer satisfaction (C-SAT)
    *First Call Resolution (FCR)
  • Cultural affinity with large markets such as the United States and Europe.
  • Outstanding work ethic, loyalty, drive and warmth with low turnover.
  • Open and competitive telecommunications market
  • Telecommunications redundancy guaranteed
  • Local and international communications companies provide a wide spectrum of services at competitive costs.
Life Sciences
 
El Salvador offers a successful export platform with geographic proximity and high-quality international standards. 
 
Investment Opportunities in the field: 
  • Medical devices
  • Health services
  • Chemical-pharmaceutical and cosmetics
Textiles and Apparel
 
El Salvador has proven to be a great spot for the production of textiles and fabric from raw materials and the transformation of these fabrics into clothing and other accessories, weaving a bright and responsible future with a vertically integrated industry and easy access to market. 
 
Investment Opportunities in the field: 
  • Manufacture of yarn and fabrics
  • Manufacture of high-value and turnover garments
  • Manufacture of “Simple transformation” garments
  • Footwear
Bitcoin City
 

El Salvador views itself as a pioneer in the use and adoption of Bitcoin. To reinforce its identity as the global Bitcoin hub, the country has announced plans to establish “Bitcoin City” below the Conchagua Volcano. The new city will serve as a Special Economic Zone that will be financed through the “Volcano Bond” issue, aimed at raising $1 billion; half of this amount will be invested in infrastructure for the geothermal power to make crypto mining sustainable through zero CO2 emissions.

The Government will provide the land and will finance the public infrastructure through Foreign Direct Investment, attracting international investors through enticing tax incentives and other benefits:

  • No capital gains taxes 
  • No income taxes
  • No real estate taxes
  • No payroll taxes
  • No municipal taxes
  • Permanent residence will be granted by the Bitcoin Law to anyone who invests in El Salvador

Other advantages offered as part of the Bitcoin City vision include:

  • Financial freedom
  • Equity and free access to digital systems
  • Physical and digital culture and art
  • Geothermal energy generation for the city and Bitcoin mining
  • Ease of business and investment 
  • in technologies
  • Sustainability, including public transportation
  • Digital education