Approval of law to incentivize repatriation of Salvadorans

November 14, 2023

The Legislative Assembly of El Salvador has approved the Special Transitory Law of Incentives and Preferential Treatments Aimed at Favoring the Repatriation of Salvadorans. This law, designed to provide temporary benefits, applies to all Salvadorans who wish to return to the country, regardless of their time spent abroad, their immigration status, or the country where they have resided. Our associate lawyer, Daniela Deras, emphasizes that, according to this legislation, individuals interested in obtaining these benefits must be Salvadorans by birth or have acquired Salvadoran nationality through naturalization, provided that this process was completed before the law’s entry into force.

What are the benefits?

  1. Family members can import household goods tax-free, up to a value of $70,000, and any excess will be subject to the transfer tax on movable property.
  2. Household goods include household articles and items, whether new or used, intended for domestic use.
  3. Goods purchased abroad for commercial or industrial purposes are not considered part of household goods.
  4. Importation of up to two vehicles for personal, family, or work use per family group is permitted, provided that the vehicles were purchased at least six months before importation and remain owned in El Salvador for at least one year.
  5. Opening bank accounts by presenting the Unique Identity Document (DUI) or passport and the foreigner’s credit history.

What do I need to do to access the benefits?

To benefit from these incentives, migrant Salvadorans wishing to return to El Salvador must follow these steps:

  1. Submit a commitment letter to the General Directorate of Migration and Foreigners.
  2. Declare under oath, before a notary, their intention to maintain their residence in El Salvador, specifying their place of domicile. “The benefits established in this initiative have a duration of one year from the submission of the commitment letter to the General Directorate of Migration and Foreigners,” Daniela ensures. If you have further inquiries about this or other matters, you can contact us through our social media or by visiting our offices located at Calle Cuscatlán, #4312, Colonia Escalón, San Salvador, El Salvador.
 
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