A. M. 
With the goal of strengthening the attraction of national and foreign investment and expanding formal employment opportunities, the Legislative Assembly approved, with 57 votes, a series of reforms to the International Services Law, which regulates the establishment and operation of service parks and centers in El Salvador.
The modifications seek to modernize the current legal framework, facilitate the expansion of existing investments in the country, and improve the competitiveness and productivity of the salvadoran economy, while also updating the requirements for companies to access the incentives provided by this law.
Among the main changes is the possibility for a single company to develop more than one incentivized activity, which will allow for the diversification of operations within the service parks and centers. Additionally, the minimum investment amounts and job creation criteria for qualifying as direct users or service centers were adjusted.
Requirements for direct users in service parks
According to the reforms, legal entities wishing to qualify as direct users for the provision of business process services in service parks must make a minimum investment of $150,000 in assets during the first six months of operation and create at least 10 permanent jobs.
In the case of medical and hospital services, the law establishes specific requirements. Companies must invest a minimum of US$1,000,000 in assets from the first year of operation, create at least 10 permanent jobs, have buildings of at least 4,000 square meters, submit a business plan, and comply with medical and hospital safety standards. These provisions apply to projects intended for medical and surgical treatments, general medicine, and dental services.
For elder and convalescent care services, the reforms require a minimum investment of $250,000 from the first year of operation and the creation of 10 permanent jobs.
Service centers: business processes, technology, and filmmaking
The reforms also update the requirements for companies applying to operate as service centers in areas such as business processes, information technology, and filmmaking, whether they are domestic or foreign.
In these cases, the regulations require a minimum investment of US$250,000 during the first six months of operation, allocated to working capital and fixed assets. In addition, companies must create at least 20 permanent jobs, have a written contract for a minimum period of six months, and submit a business plan.
In these cases, the regulations require a minimum investment of US$250,000 during the first six months of operation, allocated to working capital and fixed assets. In addition, companies must create at least 20 permanent jobs, have a written contract for a minimum period of six months, and submit a business plan.
For medical and hospital services operating as service centers, the minimum required investment is US$2,000,000 in fixed assets from the first year of operation, with the creation of at least 15 permanent jobs. These provisions apply to medical, surgical, general medicine, and dental care projects.
For senior and convalescent care centers, the law establishes a minimum investment of US$500,000 in working capital and fixed assets, the creation of 15 permanent jobs from the first year, and the submission of a business plan.
Furthermore, specialized aircraft services seeking to qualify for this program must make a minimum investment of US$500,000 in fixed assets and working capital, in addition to creating at least 50 permanent jobs.
Loss of tax benefits and incentives
The amended regulations stipulate that failure to meet the investment or job creation requirements will result in the loss of the corresponding tax benefits and incentives for the fiscal year in which the non-compliance occurs, thus strengthening control and compliance mechanisms.
Regulation of green areas in service parks
The reforms also incorporate provisions related to environmental protection by regulating the use of green areas within service parks. According to the law, these areas must represent at least 30% of the total park area. Up to 20% of these green areas may be located outside the park, provided they comply with environmental compensation criteria and have the necessary authorization from the competent land-use planning and construction authorities.
With these reforms, the country seeks to consolidate a more attractive environment for investment, promote the generation of formal employment, and strengthen the development of strategic sectors, under an updated legal framework aligned with new economic dynamics.
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