Why Set Up Your Business in a Free Trade Zone? Key Advantages You Should Know
Why Set Up Your Business in a Free Trade Zone? Key Advantages You Should Know
Setting up your business in a Free Trade Zone can be a strategic decision that reduces costs, optimizes operations, and enhances your growth. The advantages are unlimited and ideal for companies seeking greater competitiveness, government support, and access to national, regional, and international markets.
In this article, we explain why you should invest in a Free Trade Zone in El Salvador and what the main benefits are for your company.
WHAT IS A FREE TRADE ZONE?
In El Salvador, Free Trade Zones (FTZs) are areas delimited by the government where companies can operate under a special regime that grants tax, customs, and administrative incentives. These zones are regulated by the Law on Industrial and Commercial Free Zones and the Law on International Services, which are supervised by the Ministry of Economy.
BENEFITS OF SETTING UP IN A FREE TRADE ZONE IN EL SALVADOR
Key Tax Exemption
- Income Tax Exemption
- Exemption from Municipal Taxes
- 0% VAT on both local purchases and imports
- No tariffs are paid on the import of inputs, machinery, equipment, installations, and raw materials
Skilled and Competitive Workforce
- The country has technical and operating talent in key sectors, with competitive salaries at regional and international levels.
- Public and private institutions provide support for sourcing qualified labor.
Well-Developed Industrial Infrastructure
- Industrial parks with access to electricity, water, security, connectivity, and proximity to ports and airports
- Logistics, banking, and customs services are available within the same environment
WHY INVEST IN A FREE TRADE ZONE IN EL SALVADOR?
El Salvador has become an attractive destination for foreign investment thanks to its pro-business reforms, improved security, enhanced infrastructure, and commitment to economic recovery.
Establishing your company in a local Free Trade Zone reduces costs, improves logistics, and facilitates exports, enabling you to scale faster in a competitive environment.
WHAT TYPES OF COMPANIES BENEFIT?
- Export-oriented manufacturing companies
- Trading companies
- Agro-industrial businesses
- Medical device and electronics manufacturers
- Logistics and regional distribution centers
- Shared service and technology providers (BPO, call centers, software development, etc.)
¿ESTÁS LISTO PARA EXPANDIR TU EMPRESA EN EL SALVADOR?
Contact Miramar Free Trade Zone by email at info@miramar.com.sv or by phone at +503 2361 0500. You can also send us a message through our contact form.
