El Salvador’s Congress (Legislative Assembly of El Salvador) approved a decree titled “Special Provisions for the Promotion and Granting of Tax Incentives to Foster the Development of High-Rise Real Estate Projects” on 23 September 2024.
This tax incentive aimed to promote the development of significant real estate projects involving the construction of skyscrapers. It provides a 15-year income tax exemption on profits earned by owners from constructing new buildings with 35 levels or more.
The decree also provides Income tax exemptions for individuals, legal entities, and associations involved in new investments in construction projects or high-rise real estate developments (35 levels or more), covering areas such as sales, rentals for tourism or commercial use, and construction services.
To secure tax incentives, investors must submit an application to the Dirección General de Impuestos Internos at the Ministry of Finance prior to the commencement of construction work
