El Salvador is the smallest country in Central America, the country in which during the last 5 years, the investment environment has gone through a stage of transformation from public policies on the part of the current government, led by President Nayib Bukele. Below we share the key points to understand what is the moment in which the country is, and more importantly, what makes El Salvador an attractive country for investment?
1. Remarkable growth in investment funds
Investment funds in El Salvador have experienced remarkable growth since their debut in 2016, due to the attractive rate of return they offer, also because of the liquidity aspect they offer..
To date, these financial instruments accumulate a total of $50 million in assets, attracting investors both individually and to companies, domestic and foreign. It is important to note that investment funds allow investors the possibility of diversifying their portfolios.
2. Significant advances in foreign trade.
A good part of these advances are a result of agreements and public policies from years ago, however, during the last 5 previous years, progress in the simplification of procedures is significant. The Government has structured simpler processes, the use of single windows in customs, integration of digital platforms, added to multiple free trade agreements such as CAFTA-RD in which foreign trade in El Salvador already counted, put the country in a very advantageous position in the region for business development.
The government of the day has reiterated its commitment to facilitating, expanding and constantly improving in the simplification of procedures, it becomes a reliable commitment that increasingly brings more and more foreign investors.
3. Strategic projects in El Salvador
The Government of El Salvador, from the Presidency, has been characterized by planning and the execution of strategic projects focused on the attraction of tourism, logistics and technology improvement. In years ago, the country continues to bet heavily on tourism, and it is that being a small country and territory, it allows tourists to experience and experience the transformations that the territory is going through.
In the tourism part, a significant element has been the development of activities and events at the regional level, which has attracted tourists from various parts of the world, this being one of the main elements for advertising and promoting the country throughout the world.
4. Development of agricultural crops
The Government continues to support the development of agriculture for different fruits, for example, coffee, mango, watermelon, papaya, pineapple, among others. The country also has widely nourished and favorable volcanic soils for agriculture of other fruits..
In general, local agriculture has always been a key element for the development of society and industry, historically Salvadoran coffee is one of the most awarded worldwide, due to its different varieties, nuances and diversity. Coffee farming was, for many years, the main engine of the local economy.
5. Constant economic growth since 2022
Economic growth is driven by foreign foreign investment, which continues to be driven by various economic and fiscal incentives that has generated an attractive climate for investors. These measures include the creation of special economic zones, tax reduction and streamlining of bureaucratic procedures.
As we have been able to learn, the investment environment is favorable, and it is that a country as small as El Salvador, is an excellent alternative for which many investors have decided to establish itself, and that is that the possibility of having different climates with an average of 1 hour transit is highly attractive and allows us to add a lot of diversity and Versatility to day-to-day of any investor.
Immigration and Visa for investment in El Salvador
The temporary investment visa pIt enforces foreign investors to reside in El Salvador for a period of up to two years, with the possibility of renewing it for additional two-year periods. To obtain this visa, it is required to make a minimum investment of $30,000 USD in a qualified business or project.
El Salvador offers the possibility of obtaining Salvadoran nationality through investment. To qualify for nationality by investment, a minimum investment of $1 million USD is required in a qualified business or project. In addition, it allows dual nationality for those who reside in the country and meet the requirements of the law.
In short, El Salvador is a country open to the establishment of foreign investment. Offering a competitive business climate with attractive opportunities in various sectors, a legal framework that protects, favors and stimulates foreign direct investment and a favorable economic environment with growth projections, which makes it a destination to consider for investment. El Salvador also has a geographical proximity to the United States, short flight routes between Miami and San Salvador open the door to lucrative opportunities in the country.