What are the new reforms to the free zone law in El Salvador about?

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The enormous effort that the Salvadoran State has been making to encourage investment in the country must be recognized. As an example of the above, we can mention the recent reforms to the Industrial and Marketing Free Zone Law ( LZFIC) , which have been in force since September 2023.

It is worth asking what these reforms are about and how they can promote investment in the country. For this reason, we will take a brief tour of the most relevant points of these modifications to the legal regime for users of free zones and Deposits for Active Improvement ( DPA ) in El Salvador, as noted below:

  1. Incorporation of new incentivized activities

The reforms to the Law on Industrial and Marketing Free Zones incorporate new incentivized activities, as detailed below:

    • Food industry and marketing

The main element to highlight from the reforms to this law is the incorporation of the food industry to the catalog of activities encouraged by the regime of the Industrial Free Zones and Marketing Law. In this way, the production, processing and transformation or marketing of food and/or animal feed is incorporated .

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