With this treaty, which has not yet been enacted by the President, but according to information given by the Ministry of Foreign Relationships it is expected to be enacted within the next 90 days and then be published in the official gazette, the Spanish and Salvadoran businessmen who invest in Spain or El Salvador will have to pay taxes only in the country where they derive income from their operations. In the Salvadoran case, the income tax will apply to the Spanish companies that have incomes from businesses located in El Salvador, and they shall not have to pay that tax in Spain. And so when Salvadoran companies pay income tax on businesses that are located in Spain, they should not pay them again here.

Consortium Centro America Abogados will pay special attention to the publication of this treaty once it enters in force and effect.  To keep our clients informed, our firm will also be attentive of other treaties signed by El Salvador with other countries in the same vein.

Diego Martín

Senior Associate

dmartin@consortiumlegal.com