{"id":8883,"date":"2023-10-03T09:17:00","date_gmt":"2023-10-03T09:17:00","guid":{"rendered":"https:\/\/avvocato.vamtam.com\/?p=8883"},"modified":"2026-10-19T21:46:40","modified_gmt":"2026-10-19T21:46:40","slug":"foreign-investment-incentives-reforms","status":"publish","type":"post","link":"https:\/\/legalspotsv.com\/en\/reformas-ley-de-servicios-internacionales\/","title":{"rendered":"New incentives for foreign investment: Reforms to the International Services Law and Free Trade Zones in El Salvador"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"8883\" class=\"elementor elementor-8883\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b120fc5 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b120fc5\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-aeb3e3b\" data-id=\"aeb3e3b\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-lsupd01 elementor-widget elementor-widget-html\" data-id=\"lsupd01\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"ls-info ls-actualizacion-lsi\"><p><strong>Update (2026):<\/strong> On January 14, 2026, the Legislative Assembly approved a new amendment to the International Services Act (Legislative Decree No. 497). Review <a href=\"https:\/\/legalspotsv.com\/en\/international-services-law-reform-2026\/\">Our Analysis of the 2026 Reform<\/a> to learn about the current rules.<\/p><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"vamtam-has-theme-widget-styles elementor-element elementor-element-72a39fc elementor-widget elementor-widget-text-editor\" data-id=\"72a39fc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p class=\"translation-block\"><span style=\"font-weight: 400\">El Salvador continues to strengthen its legal framework to position itself as a competitive destination in the region. Recently, the <a href=\"https:\/\/www.asamblea.gob.sv\/\" target=\"_blank\" rel=\"noopener\"><strong>R<\/strong><b data-path-to-node=\"5,0,0\" data-index-in-node=\"42\">eforms to the International Services Law<\/b><\/a> and to the <strong>Industrial Free Trade Zones<\/strong><\/span> and<b> Marketing Law (LZFIC)<\/b><span style=\"font-weight: 400\"> have been implemented. These modifications have the primary objective of promoting economic and social development by facilitating <\/span><b>tax incentives<\/b><span style=\"font-weight: 400\"> and encouraging new investments.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a1a5658 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a1a5658\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0bdf495\" data-id=\"0bdf495\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"vamtam-has-theme-widget-styles elementor-element elementor-element-a6b92fb elementor-widget elementor-widget-text-editor\" data-id=\"a6b92fb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p class=\"translation-block\"><span style=\"font-weight: 400\">As expert <\/span><b>attorneys in El Salvador<\/b><span style=\"font-weight: 400\">, at <\/span><b>Legal Spot<\/b><span style=\"font-weight: 400\"> we analyze the most significant changes that directly impact investors:<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0e00637 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0e00637\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c5d38e3\" data-id=\"c5d38e3\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d61a5ed elementor-widget elementor-widget-heading\" data-id=\"d61a5ed\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Benefits of the International Services Law reforms<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"vamtam-has-theme-widget-styles elementor-element elementor-element-e30fa9f elementor-widget elementor-widget-text-editor\" data-id=\"e30fa9f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p class=\"translation-block\">The International Services Law reforms are designed to expand opportunities for natural or legal persons, both national and foreign, operating under this regime.<\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\" class=\"translation-block\">Plurality of activities: Beneficiaries can now carry out one or more incentivized activities simultaneously, provided they meet the most demanding investment and employment requirements among the requested activities.<\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Flexibility in the initial phase:<\/b><span style=\"font-weight: 400;\"> Articles 23 and 24-A have been amended to provide greater operational flexibility during the first few months of the investment.<\/span><ul><li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">For <\/span><b>business process services<\/b><span style=\"font-weight: 400;\">, the minimum investment is <\/span><b>USD 150,000.00<\/b><span style=\"font-weight: 400;\"> at Service Parks and <\/span><b>USD 250,000.00<\/b><span style=\"font-weight: 400;\"> at Service Centers.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">For <\/span><b>medical and hospital services<\/b><span style=\"font-weight: 400;\">, the minimum investment ranges from <\/span><b>USD 1,000,000.00<\/b><span style=\"font-weight: 400;\"> and <\/span><b>USD 2,000,000.00<\/b><span style=\"font-weight: 400;\">, which must be carried out starting in the first year of operations, as appropriate.<\/span><\/li><\/ul><\/li><li style=\"font-weight: 400;\" aria-level=\"1\" class=\"translation-block\">Green area management: A more flexible distribution of green areas (30% of the total) is introduced, allowing a portion to be located outside the Service Park under compensation schemes.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bc3f9fa elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bc3f9fa\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3280640\" data-id=\"3280640\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-79eb8a4 elementor-widget elementor-widget-heading\" data-id=\"79eb8a4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Free Trade Zones Law (LZFIC): Extension of tax benefits<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"vamtam-has-theme-widget-styles elementor-element elementor-element-1c6623e elementor-widget elementor-widget-text-editor\" data-id=\"1c6623e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">For the industrial and manufacturing sectors, the LZFIC presents attractive changes that seek to consolidate existing investments and attract new capital.<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\" class=\"translation-block\">Extension of the exemption period: One of the most relevant developments is the possibility of requesting an additional 10-year period of full tax exemption once the initial period has expired, representing a 5-year increase compared to the previous law.<\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Requirements for the extension:<\/b><ul><li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Developers must have invested in expanding the total area of the free trade zone.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Users and Active Improvement Deposits (DPA) must verify a <\/span><b>a 100% increase in your initial investment<\/b><span style=\"font-weight: 400;\"> or meet specific employment eligibility requirements (with investments of at least USD 500,000.00 or USD 800,000.00, respectively).<\/span><\/li><\/ul><\/li><li style=\"font-weight: 400;\" aria-level=\"1\" class=\"translation-block\">Grace period: A 2-year grace period is established after the expiration of the original agreement for companies to make the necessary adjustments and investments to continue enjoying the benefits.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-56f3035e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"56f3035e\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-31476a63\" data-id=\"31476a63\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6434211 elementor-widget elementor-widget-heading\" data-id=\"6434211\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Mobility and Strategy: DPA and Service Parks<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"vamtam-has-theme-widget-styles elementor-element elementor-element-b02331e elementor-widget elementor-widget-text-editor\" data-id=\"b02331e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">The reform also introduces greater operational versatility:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\" class=\"translation-block\">Regime change: It is now possible to request a change of beneficiary type from Free Trade Zone User to DPA and vice versa.<\/li><li class=\"translation-block\">Cross-installation: Free trade zone users are allowed to operate in service parks, receiving the same legal treatment as if they were in a free trade zone.<\/li><\/ul><p class=\"translation-block\">The versatility offered by these International Services Law reforms allows companies greater strategic mobility between tax regimes.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f554906 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f554906\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-47fb10e\" data-id=\"47fb10e\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"vamtam-has-theme-widget-styles elementor-element elementor-element-45246ee elementor-widget elementor-widget-image\" data-id=\"45246ee\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1536\" height=\"1024\" src=\"https:\/\/legalspotsv.com\/wp-content\/uploads\/2023\/10\/Inversion-2.jpeg\" class=\"attachment-full size-full wp-image-988868\" alt=\"New incentives for foreign investment: Reforms to the International Services Law and Free Trade Zones in El Salvador\" srcset=\"https:\/\/legalspotsv.com\/wp-content\/uploads\/2023\/10\/Inversion-2.jpeg 1536w, https:\/\/legalspotsv.com\/wp-content\/uploads\/2023\/10\/Inversion-2-300x200.jpeg 300w, https:\/\/legalspotsv.com\/wp-content\/uploads\/2023\/10\/Inversion-2-1024x683.jpeg 1024w, https:\/\/legalspotsv.com\/wp-content\/uploads\/2023\/10\/Inversion-2-768x512.jpeg 768w, https:\/\/legalspotsv.com\/wp-content\/uploads\/2023\/10\/Inversion-2-18x12.jpeg 18w\" sizes=\"(max-width: 1536px) 100vw, 1536px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7a9d9976 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7a9d9976\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7a53e10a\" data-id=\"7a53e10a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-13321227 elementor-widget elementor-widget-heading\" data-id=\"13321227\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\"><b>Contact us at<\/b> <a href=\"https:\/\/legalspotsv.com\/en\/contact\/\" target=\"_self\">legalspotsv<\/a><b> and discover how your company can benefit from these International Services Law reforms.<\/b><\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"vamtam-has-theme-widget-styles elementor-element elementor-element-16c5bfa1 elementor-widget elementor-widget-text-editor\" data-id=\"16c5bfa1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Navigating the tax incentive regimes in El Salvador requires precise legal advisory to ensure compliance with the investment and employment requirements demanded by the Ministry of Economy.<\/span><\/p><p class=\"translation-block\">At Legal Spot, we ensure that your company takes full advantage of the competitive benefits of the new <b data-path-to-node=\"13,0,0\" data-index-in-node=\"114\">International Services Law reforms<\/b> in El Salvador.<\/p><p class=\"translation-block\"><b>Contact us at<\/b> <a href=\"https:\/\/legalspotsv.com\/en\/contact\/\" target=\"_self\">legalspotsv<\/a><b> and discover how your company can benefit from these International Services Law reforms.<\/b><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>El Salvador contin\u00faa fortaleciendo su marco legal para posicionarse como un destino competitivo en la regi\u00f3n. Recientemente, se han implementado las Reformas ley de servicios internacionales y a la Ley de Zonas Francas Industriales y de Comercializaci\u00f3n (LZFIC). Estas modificaciones tienen como objetivo primordial impulsar el desarrollo econ\u00f3mico y social mediante la facilitaci\u00f3n de incentivos&#8230;<\/p>","protected":false},"author":1,"featured_media":988863,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[46],"class_list":["post-8883","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articulos","tag-redaccion-legal-spot"],"_links":{"self":[{"href":"https:\/\/legalspotsv.com\/en\/wp-json\/wp\/v2\/posts\/8883","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalspotsv.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalspotsv.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalspotsv.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalspotsv.com\/en\/wp-json\/wp\/v2\/comments?post=8883"}],"version-history":[{"count":66,"href":"https:\/\/legalspotsv.com\/en\/wp-json\/wp\/v2\/posts\/8883\/revisions"}],"predecessor-version":[{"id":989214,"href":"https:\/\/legalspotsv.com\/en\/wp-json\/wp\/v2\/posts\/8883\/revisions\/989214"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalspotsv.com\/en\/wp-json\/wp\/v2\/media\/988863"}],"wp:attachment":[{"href":"https:\/\/legalspotsv.com\/en\/wp-json\/wp\/v2\/media?parent=8883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalspotsv.com\/en\/wp-json\/wp\/v2\/categories?post=8883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalspotsv.com\/en\/wp-json\/wp\/v2\/tags?post=8883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}