El Salvador recently passed the Law for the Promotion of Innovation and Technology Manufacturing.
Who does it apply to, and what are its benefits?
The law applies to all companies in:
- information systems
- software
- technology management, maintenance, and consulting
- cybersecurity solutions
- 'big data' analytics
- artificial intelligence
- cloud computing services
Additionally, companies that specialize in:
- computer hardware manufacturing
- robotics
- nanotechnology
- technology parts assembly
What are the incentives for these companies?
- income tax exemption
- municipal tax exemption
- capital gains tax exemption
- import tariff exemption
These exemptions will be in place for _fifteen years_.
These benefits will apply to both natural persons and corporations domiciled in El Salvador; to Salvadoran nationals as well as foreigners.
There will be no minimum investment requirements to qualify for these benefits.
All this will position El Salvador as a hub of innovation in the region, catapulting the local economy and creating many opportunities.
The future is in El Salvador 🇸🇻🔥
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Rodrigo Ayala (@rodrigoayalasv) on X
Ley de Fomento a la Innovación y Manufactura Tecnológica. 🇸🇻
