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El Salvador: Tax incentives for investment expansion

Law 498 effective January 24, 2026

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march 6, 2026

The Legislative Assembly on January 14, 2026, approved Law 498 for the promotion of investment expansion, introducing tax incentives to encourage existing companies to expand operations in El Salvador.

The law—effective January 24, 2026—provides a 10-year income tax credit of 10% to 30%, based on qualifying investment value, and a real estate transfer tax exemption (subject to sector, investment, and compliance requirements).


For more information, contact a KPMG tax professional in El Salvador:

Flor Jaime | fjaime@kpmg.com

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