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Latin America Investment News on Viva Tropical

El Salvador Considering Incentives to Increase Foreign Investment

Article Summary:

Bringing in more direct foreign investment dollars into El Salvador might be as easy as cutting the bureaucratic red-tape and offering better tax incentives. Armed with this knowledge The Association of Tourist Developers Coastal Marine is petitioning the Government to improve tax incentives and review the organizations proposals to improved direct foreign investment into the country.

Photo Credit: El Mundo

Original Article Text From El Mundo via Google Translate :

Promar Calls for Improving Tax Incentives

The association says that the bureaucracy of the country in terms of permits and the lack of attractive tax incentives, hinder foreign investment in the sector.

If the country wants to attract more investment in the tourism sector in the coming years, should offer better tax incentives and reduce red tape, said Mark Guirola, president of Promar.

“The tape in the country is complex. To gain approval for an investment project can take up to two years and other countries take only five months, “he said.

The lack of homogeneity of municipal governments is one of the problems facing investors, as not all are focused on encouraging investment and away from the difficult processes to facilitate the collection of municipal taxes high or slow to issue permits, she added.

He said that public investment is low, so there is the need to attract foreign investors to stimulate the development of the country, so there is the need for attractive tax incentives. And, having to realize that the country “have a degraded image internationally by violence and insecurity,” he said, should be taken other ways to bring investment to the country.

“When you have a country with a violent image, with low economic indices, the only option to be competitive is to have attractive tax incentives to stimulate productivity of tradable goods,” said Guirola.

In that sense, the Promar Group has requested the Government to improve tax incentives and provides its own proposals. One is the tax extension for 30 years for investments of $ 2 million related to the tourist industry to be installed in the country over the next three years, and the exception of company and municipal taxes.

To maintain investments seeking the elimination of tax on additional investment of $ 25,000 or more. “One would think that we are giving away too much, but keep in mind that investments do not have them and if we do not seek alternatives how are you never going to achieve, “he said.

In recent years, El Salvador has lost several steps in reports such as the Competitiveness Index, World Economic Forum, and the Doing Business, World Bank.

Such studies are widely viewed by foreign investors, for in them is summarized through various indicators, ease of doing business in a country.

Resort Development Association Coastal Marine (Promar) was born a year and half ago with the aim of joining forces on the development of the coast and sea in El Salvador.

Promar’s mission is to strengthen and promote sustainable development of tourism projects that help improve the image wing of the country and the quality of life of the population and the environment.

The Promar board consists of recognized Salvadoran businessmen.

Link to Original Article:

From El Mundo

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