2024-09-29 12:18:23
With 57 votes, the Legislative Assembly of El Salvador approved the decree “Special provisions for the promotion and granting of tax incentives to encourage the development of high-rise real estate projects.”
The same grants an income tax exemption on profits earned by owners from the construction of new buildings of 35 stories or more for 15 years.
The decree grants exemption from income tax to persons, legal entities and associations of individuals, domiciled or not in the national territory, who are holders or owners of new investments in construction projects or construction of high-rise real estate developments of – 35 levels or more, whether in the first sale and purchase of high-rise real estate, rental of high-rise real estate for tourism, commercial or service purposes, rental of hotel spaces or services, or provision of services of construction.
To obtain tax incentives, investors must apply to the General Directorate of Internal Revenue, in the Ministry of Finance, before construction work begins.
Present at the plenary session was the executive director of the San Salvador Metropolitan Area Planning Office (OPAMSS), Luis Rodríguez, who has projected an investment of 7.8 billion dollars in different projects in AMSS, Libertad Costa and Libertad Este.
The deputies also explained that currently real estate development is centralized in certain areas because they are more developed and have more space to build horizontally; However, with this initiative, builders could develop high-rise homes in places such as San Martín, Soyapango, Apopa and other municipalities.
“We see that the government and private companies are joining forces to develop an activity that is latent and that we want to encourage so that construction provides solutions to the population in terms of housing and these housing exemptions motivate the builder,” said Congressman Edgardo Mulatto.
According to data from the Central Reserve Bank (BCR), the construction industry generates more than 200 thousand direct jobs and this sector employs 8% of the people who work in the country. Furthermore, this sector represents 12.5% of the Gross Domestic Product.