The regulation establishes special procedures for hiring, permits, and immigration for projects coordinated by the National Artificial Intelligence Agency.
The Legislative Assembly approved Legislative Decree No. 674, which contains the “Special Provisions for the Implementation of National Projects on Artificial Intelligence, Robotics, and Other Similar Technologies.”.
The new framework aims to facilitate the implementation of technology initiatives promoted or coordinated by the National Artificial Intelligence Agency (ANIA), including research projects, the development of artificial intelligence systems, IT infrastructure, data centers, robotics, and other related technologies.
Which initiatives may be considered national projects?
The regulation will not automatically apply to any company or initiative related to artificial intelligence.
For a project to be eligible under these provisions, it must be spearheaded or coordinated by ANIA and formally designated as a National Project on Artificial Intelligence, Robotics, or Other Similar Technologies.
The declaration shall be issued by the executive director of ANIA, who must issue a reasoned decision identifying, among other things:
- The nature and purpose of the project.
- Its scope, components, and stages.
- The necessary purchases and contracts.
- The infrastructure and services involved in its implementation.
Projects may include activities related to research, development, training, evaluation, implementation, transfer, and application of systems, models, platforms, and technological solutions.
They may also include the construction, acquisition, operation, maintenance, or expansion of computing infrastructure, data centers, laboratories, power systems, cooling systems, connectivity, and interconnection.
Direct Procurement of Certain Goods and Services
One of the main provisions of the decree is the establishment of a special direct contracting procedure for procurements related to projects declared to be of national interest.
This mechanism could be used, among other cases, when:
- Highly specialized services or technologies that are not available in El Salvador are required.
- There is only one supplier capable of providing the good or service.
- It may be necessary to acquire a specific technology for reasons of compatibility, security, support, or integration.
- Equipment, licenses, or specialized services are needed for scientific research, innovation, or technological development.
- The limited availability of qualified suppliers makes a competitive process impractical.
- It may be necessary to hire domestic or foreign experts, researchers, consultants, evaluators, mentors, or speakers.
Direct contracting does not mean that ANIA can enter into contracts without documentation or justification. Each transaction must be supported by a file that allows for verification of the supplier’s qualifications, the technical and financial terms of the contract, and the reasonableness of the price.
In addition, the selection of the supplier and the main terms of the contract must be approved by a resolution of the Agency’s executive director or his or her deputy.
Transactions may be formalized through contracts, purchase orders, acceptance of offers, or electronic mechanisms that provide evidence of the subject matter, price, and other agreed-upon terms.
What opportunities does this open up for technology companies?
The program can create opportunities for domestic and foreign companies engaged in:
- Software development and artificial intelligence models.
- Data storage and processing services.
- IT infrastructure and computing capacity.
- Construction and operation of data centers.
- Cybersecurity.
- Robotics and Automation.
- Power and Cooling Systems.
- Digital platforms and technology licensing.
- Consulting, research, and specialized training.
- Connectivity and Interconnection Services.
However, the approval of the decree does not automatically make a company an ANIA supplier, nor does it guarantee the award of contracts. Interested companies must demonstrate experience, technical capability, availability, commercial terms, and compliance with the specific requirements defined for each project.
From a preventive standpoint, vendors should prepare their technical credentials, corporate documentation, verifiable experience, ownership or authorization to use technologies, pricing structure, and compliance policies in advance.
Measures to Facilitate the Hiring of Foreign Specialists
The provisions also provide for special treatment for foreign professionals hired exclusively to provide services to ANIA.
Specialists who hold degrees accredited in their country of origin may be exempt from having their degrees recognized in El Salvador and from obtaining certain professional credentials, provided they meet the established requirements and maintain a valid contractual relationship with the Agency.
ANIA must maintain a registry of these professionals and share the relevant information with the General Directorate of Migration and Foreigners.
Foreign specialists may apply for temporary residency for themselves and their immediate family for a period of up to two years, with the possibility of an extension.
This immigration provision does not constitute a general authorization for any foreign professional to freely practice their profession in El Salvador. The benefit would be contingent upon their hiring for a project covered by the program and on compliance with the conditions established by the regulations.
Expedited Permit Procedures
The decree authorizes various public institutions and municipalities to issue special guidelines to facilitate the processing of documents, authorizations, and permits required for national projects.
Among the entities that could be involved are:
- The Department of Land Use Planning and Construction.
- The National Registry Center.
- The General Directorate of Customs.
- The General Directorate of Energy, Hydrocarbons, and Mines.
- The municipalities.
- Any other relevant institutions, depending on the nature of the project.
Special procedures could include building, environmental, energy, interconnection, customs, and operating permits.
However, the creation of expedited processes should not be interpreted as an automatic elimination of technical, environmental, registration, or municipal requirements. It will be necessary to review the guidelines issued by each authority and the conditions applicable to each initiative.
No automatic tax exemptions are granted
Developers, operators, suppliers, and investors involved in these projects may apply for the tax and customs benefits or incentives already provided for in other Salvadoran laws, provided they meet the requirements of the relevant regime.
This means that Decree No. 674 does not, on its own, grant a general tax exemption to all companies involved in artificial intelligence.
Each investor must determine whether its activities are eligible, for example, for incentives applicable to international services, technological innovation, investment expansion, or other special programs.
Auditing of Resources and Contracts
Transactions carried out under this regime may be reviewed by the Court of Accounts of the Republic through financial, external, operational, or management audits.
Although the regulations allow for special procurement procedures, institutions and suppliers must retain sufficient evidence of the decisions made, the contractor’s technical capacity, the reasonableness of prices, compliance with obligations, and the effective performance of services.
This traceability will be particularly important in complex technology contracts, where licenses, intellectual property, data processing, cloud services, maintenance, technology transfer, and confidentiality obligations may all be involved.
What should interested companies do?
Technology companies, developers, infrastructure operators, and investors who wish to participate in this ecosystem can start by:
- Identify the goods, services, and solutions that could be offered to projects coordinated by ANIA.
- Organize your professional and technical credentials.
- Document experience, certifications, licenses, and intellectual property rights.
- Review your corporate and tax structure in El Salvador.
- Evaluate sector-specific, environmental, municipal, or building permits.
- Prepare contracts for supply, licensing, implementation, confidentiality, and data processing.
- Analyze the immigration and employment status of foreign specialists.
- Verify whether they meet the requirements of any current tax or customs regulations.
Consulting Services for Suppliers and Investors
The program offers an opportunity to attract expertise, infrastructure, and specialized suppliers; however, participating in these projects will require coordination across corporate, contractual, tax, immigration, regulatory, and intellectual property matters.
Legal Spot can assist domestic and foreign companies with their establishment and operations in El Salvador, corporate structuring, reviewing technology contracts, protecting intellectual property, hiring specialists and handling their immigration status, processing permits, evaluating tax incentives, and providing legal preparation for participating as a supplier or investor in projects related to artificial intelligence and robotics.
