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Investment & Legal Framework
and some specific services of public goods that
require a prior concession by the State and financial
entities. To be more concrete:
• Commerce, industry, small service assistance, and
deep water fishing under the terms established by
law, belong exclusively to Salvadorans by birth and
Central Americans. However, since 2001, foreigners
are permitted to fish as long as they first request a
license from CENDEPESCA.
• The subsoil belongs to the State who can grant
concession for its use.
• The State has the authority to regulate and
supervise public services rendered by private
enterprises, as well as to approve their rates, except
those established in accordance with international
agreements and treaties.
• The State’s authorization is required for the use
of docks, railways, canals and other objects or
properties subject to public use under the conditions
stated in the law.
• Investments made in banks, finance and foreign
exchange establishments and stocks are subject to
the limitations stated in the laws that regulate those
institutions. Since 2002, national treatment has been
granted to those foreigners who invest in Salvadoran
Banks.
• Foreign companies residing in the country will have
1.5% a month withheld from their total billing, for
those foreign companies who do not not reside in
the country the amount withheld will be 20%.
Incentives and Benefits for Investment
In El Salvador, foreign investors and Salvadorans
residing abroad enjoy a stable and safe environment
to carry out their investments in, since there is
legislation focused not only on protecting their
rights but also on granting them a series of benefits.
In total there are five laws that were created to
convert El Salvador into a favorable destination in
which to invest.
Alba Petróleos has made an important investment in
building its fuel storage tanks in Acajutla