INVESTOR GUIDE (FAQ)

Read and familiarize yourself with the details and provisions of the Law of Promotion of Innovation and Technology Manufacturing in El Salvador. Find the law here 

Determine the specific sectors or activities mentioned in the law that qualify for incentives, such as software development, cloud computing, robotics, and renewable energy. 

Research and identify investment opportunities within the qualified sectors in El Salvador. Look for potential projects or companies that align with the incentivized activities. 

Analyze the potential returns and profitability of the investment opportunities you have identified. Consider factors such as market demand, growth potential, competition, and financial projections. 

Seek advice from legal and financial experts, such as MadeinSV, who are knowledgeable about investing in El Salvador and the specific incentives provided by the law. They can guide you through the investment process and ensure compliance with all regulations. MadeinSV has expertise in the Salvadoran market and can provide valuable insights and assistance in navigating the investment landscape, identifying opportunities, and maximizing the benefits of the law. Their knowledge and experience will help you make informed investment decisions and optimize your investment in El Salvador. Find our services here.

If you decide to proceed with the investment, establish a legal presence in El Salvador by registering a company or partnership. This will allow you to operate within the country's legal framework and access the incentives provided by the law. 

Obtain any required permits, licenses, or authorizations related to your investment project. Ensure that you comply with all regulatory requirements and submit the necessary documentation to the relevant authorities. Find link to Ministry of Economy here.

Apply to the Ministry of Economy for a Qualification Agreement, which confirms your eligibility for the fiscal incentives outlined in the law. Provide all the required information and documentation as specified by the ministry. 

• Programming, management, maintenance, consulting, and analysis of computer systems or software. 
• Development and commercialization of cloud computing services and data flow, artificial intelligence, big data analytics, distributed ledger technology, cybersecurity solutions, and quantum computing. 
• Technologies related to the manufacturing of parts, materials, equipment or facilities, assembly, including manufacturing plants for technology equipment or hardware, semiconductors, communication technology, robotics, nanotechnology, aircraft, and unmanned vehicles. 
• Engineering and system technologies necessary for integrating basic industrial technologies into global production chains.
• New sources of energy generation and storage not currently existing within the national energy matrix, subject to the corresponding authorizations and concessions.
• Research and development of new technologies. 

Please note that these industries or sectors are mentioned in relation to the eligible activities for incentives under the law. The law does not provide an exhaustive list of industries, but rather specifies the types of activities that can qualify for incentives. 

Once your investment project is approved and you receive the Qualification Agreement, ensure that you fulfill all obligations specified in the agreement. This may include maintaining separate accounting records, allocating a portion of the budget to research and development, and complying with reporting requirements. 

Benefit from the fiscal incentives provided by the law, such as exemptions from income tax, import duties, and other taxes. Maximize these incentives to enhance the financial viability and profitability of your investment.