El Salvador

El Salvador, the smallest and most densely populated country in Central America, is the former site of the ancient Pipil civilisation. It was conquered by Spain in 1524, under whose rule the capital city of San Salvador was founded by Diego de Holguin and Gonzalo de Alvarado in 1525. El Salvador declared its independence from Spain on 15 September 1821 as the Central American Federation, which was dissolved in 1839. El Salvador is a democratic republic governed by a president, and Spanish is the official language. Its currency is the United States dollar (USD); additionally, on 8 June 2021, the Legislative Assembly approved bitcoin as a legal tender, effective on 7 September 2021.

In general, El Salvador has always adopted an open attitude towards foreign direct investment, and the country is basing its development strategy on a policy of openness to trade, investment, and international competitive pressures.

Growth has been modest in recent years, and the economy has been affected by the global economic crisis. Nevertheless, El Salvador has noteworthy worldwide support. It is the only country in Central America, and one of four nations around the world, selected by the US government to work side-by-side under a collaboration initiative called ‘Partnership for Growth’, which seeks to eliminate barriers to achieve economic development. It is also the only country in the region that has twice received funds from the Millennium Challenge Corporation. This is a significant distinction because only eligible countries that meet strict requirements of good governance, investment in human capital, and economic freedom can receive these funds. This second compact represents USD 365 million in investment, which is being implemented from 2015 onwards to boost the expansion of the marine coastline of the country. It is because of this that several multinational companies have chosen El Salvador as an investment destination.

PwC Inter-America is a regional entity comprised of seven firms: PwC Guatemala, PwC El Salvador, PwC Honduras, PwC Nicaragua, PwC Costa Rica, PwC Panama, and PwC Dominican Republic. Together, we have over 1,000 professionals ready to provide our clients with audit, tax, legal, and consulting services. Inter-America firms are backed by over 40 years of experience rendering a high standard of professional services to the private sector, public sector, and non-profits. PwC El Salvador supports clients with the local knowledge and skills of its people and with access to a broad range of other professionals across the PwC global network of firms.