A coast on the move
Why El Tunco is one of the most accessible places in Latin America to open a small business right now.
El Tunco isn't Tulum yet, and that's the opportunity. The coast is in a window where infrastructure is improving fast, foreign capital is paying attention, and the categories that define a beach town's identity are still being claimed. A good restaurant, a good coffee bar, a clean hostel, a competent tour operator: all of these are still wide open in ways they aren't in Costa Rica or Mexico's Pacific coast.
Tourism volume has climbed every year since 2022, when the country's security transformation reset the international perception of El Salvador. Long-stay visitors are the most interesting segment: surfers who book three weeks and come back twice a year, remote workers settling in for a season, retirees scoping out residency. They spend more per head than weekend tourists, and they're actively looking for places that feel built for them, not adapted to them.
The flip side is real. Supply chains are short and improvisational, the talent pool is small, and municipal infrastructure (water, internet, road) varies by block. Businesses that succeed here are run by operators who are physically present, comfortable in Spanish or partnered with someone who is, and patient with the rhythm of a town that's still figuring itself out. If you're hoping to set up remotely and run from a laptop in Lisbon, this isn't your market. If you're moving here, it might be the best one in the region.
What foreigners need to know
Six things to understand before you start filling out paperwork.
Business structures available
The most common entity is the S.A. de C.V. (Sociedad Anónima de Capital Variable), a flexible LLC-equivalent. Simpler options include the Empresa Individual (sole proprietor) for one-person operations. Most foreign-owned restaurants, cafés, and small hotels here are S.A. de C.V.
Tax basics
Corporate income tax is a flat 30% on net profits, with a 25% rate for income under ~$150k. VAT (IVA) is 13% on most goods and services. Bitcoin transactions enjoy capital-gains exemption under the Bitcoin Law, though local accountants are still mapping the practicalities. Hire one early.
Can foreigners own 100%?
Yes, for most sectors. No Salvadoran partner is required to incorporate or own a business outright. The exceptions are a short list of regulated industries (some media, some land near borders or coast). For a café, surf school, hostel, or shop, full foreign ownership is standard.
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.
Estimated startup costs
Legal + government fees to incorporate: ~$1,500–$2,500. Minimum capital for an S.A. de C.V.: $2,000 (only $100 paid up front). Add municipal license, signage permits, and food handling certifications as relevant. A modest café build-out runs $15–40k all-in.
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.
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