A coast on the move
What's shaping the opportunity for small businesses in El Tunco right now.
El Tunco is a small coastal town that is still filling in. Whole categories are thinly served or absent from our directory today. That is the opening, and it is also the reason the work is hard.
International arrivals to El Salvador have grown in recent years, on the Ministry of Tourism's own count. The segment that matters on this coast is the long-stay visitor: surfers who book weeks rather than days, remote workers settling in for a season, retirees looking at residency. They are looking for places built for them rather than adapted to them.
The other side is real. Supply chains are short, the pool of specialised labour is small, and water, internet and road quality vary block by block. The operators who do well here are present in person and either work in Spanish or have a partner who does. Running it remotely from another continent is not what this market rewards.
What foreigners need to know
Six things to understand before you start filling out paperwork.
Business structures available
The S.A. de C.V. (Sociedad Anónima de Capital Variable) is a flexible LLC-equivalent. Simpler options include the Empresa Individual (sole proprietor) for one-person operations.
Tax basics
Corporate income tax is 30% of taxable income. Companies whose taxable revenue for the year is US$150,000 or less pay 25% instead. The threshold is measured on revenue, not on profit. IVA is 13% of the taxable amount. Exports are zero-rated and the law lists a handful of exemptions. Article 5 of the Ley Bitcoin exempts bitcoin exchanges from capital gains tax. How that lands in your books is a question for a local accountant.
Can foreigners own 100%?
Yes. The Investment Law gives foreign investors, and the companies they take part in, the same rights and obligations as Salvadoran ones. No Salvadoran partner is required to incorporate or to own a company outright. The Investment Law does set limits, and they are not the ones people expect: small-scale commerce, industry and services, and inshore fishing, are reserved to Salvadorans by birth and to Central Americans; the subsoil belongs to the State; rural land carries a reciprocity rule and a cap of 245 hectares per owner; public-service concessions, and shares in banks, finance companies and exchange houses, are governed by their own laws. Where a small business falls against that reserved category of small-scale commerce is a question for a Salvadoran lawyer before you incorporate, not after.
Typical setup timeline
Realistic end-to-end: 4 to 8 weeks from “I want to do this” to operating with NIT, IVA registration, and a municipal license. Faster is possible if your paperwork is clean. Slower is also possible: many delays come from notarized translations and apostilled documents from your home country.
Capital requirements
Legal and government fees to incorporate depend on the vehicle you choose and on the lawyer. Ask for a written quote that separates the two before you commit. A sociedad anónima needs share capital of at least $2,000, fully subscribed (Código de Comercio, Art. 192). Of that, at least 5% of the cash value of each share has to be paid in at incorporation. The balance falls due within a year of the deed being registered (Código de Comercio, Arts. 192 and 194). Add municipal license, signage permits, and food handling certifications as relevant. Since February 2024 there is a second vehicle. The sociedad por acciones simplificada (S.A.S.), created by Decreto Legislativo 905, can be formed by a single shareholder, sets its capital freely from $1, needs no public deed (the Registro de Comercio takes a form), and lets the subscribed capital be paid over up to two years. The S.A. de C.V. is no longer the only default.
Language & local partnerships
Government paperwork is in Spanish. You don't need to be fluent, but you do need someone who is: a bilingual lawyer, a local manager, or a partner. Building a small bench of trusted locals (an electrician, an accountant, a contractor) matters more than any document. Relationships are infrastructure here.
Frequently asked
Answers we give over and over to people thinking about making the move.
Useful links
Tell us what you're trying to build.
We're a small team based on the coast. If you're seriously considering opening something here, drop us a note. We'll point you toward the right people, share what we know about your category, and answer questions that don't have a tidy FAQ answer.
Or message us directly on WhatsApp →