You are currently viewing Newsflash – El Salvador: Guidelines regarding the Regulations for the Operation of Commercial Activities in Establishments in the Historic Center of San Salvador

Newsflash – El Salvador: Guidelines regarding the Regulations for the Operation of Commercial Activities in Establishments in the Historic Center of San Salvador

We are sharing important guidelines regarding the Regulations for the Operation of Commercial Activities in Establishments in the Historic Center of San Salvador, approved by the Executive President of the Planning Authority of the Historic Center of San Salvador and published in the Official Gazette on June 11, 2024.

The main guidelines are:

Licenses and Permits:

•    All commercial or service establishments operating within the 70-block area of the historic center must formalize their operations.
•    Obtaining operating licenses is mandatory and must be renewed annually.
•    The Operating License must be requested through a form, which can be submitted in writing or electronically via a single window.
•    If the property or establishment undergoes modifications that alter its operations during the validity of the Operating License, a new license application must be processed.
•    Establishments without an operating license may operate with a temporary permit that does not exceed 90 days.
•    Both natural and legal persons, national and foreign, can apply for operating licenses, except for state institutions.

Denial of Operating License:

•    An operating license will not be granted if the requirements are not met; if the public road is used, obstructing or impeding pedestrian or vehicular traffic; if there are no favorable opinions related to the activities to be carried out; if public interest is affected; if requirements have not been met within the corresponding period; if there are no favorable resolutions of prior procedures; if the use is not in accordance with the zoning of the area.

Commercial Activities:

•    Establishments that can obtain a license or permit include those dedicated to food services, accommodation, exclusive sale of alcoholic beverages, public, commercial, and service recreation; educational services; culture; health; transportation and parking.
•    Recreational businesses include casinos, nightclubs, karaoke bars, cinemas, auditoriums, theaters, amphitheaters, billiards, electronic games, arcades, and gaming machines.

Fines and Sanctions:

•    Businesses or establishments operating without an Operating License, altering the content of licenses, or providing false information will be fined 15 minimum wages.
•    Failing to comply with the resolution granting the Operating License or temporary permit, as well as failing to comply with regulations, will result in a fine of 10 minimum wages.
•    Operating with an expired Operating License or temporary permit will result in a fine of 5 minimum wages.
•    In addition to fines, authorities may order the closure of establishments operating without the corresponding license or permit.

We also remind you that, in accordance with the Law on the Creation of the Historic Center Planning Authority, investments made will have the following tax incentives:

•     Income tax exemption for a period of 10 years for investments in construction, remodeling, expansion, recovery, and conservation of properties amounting to $1,000 per square meter of property with a minimum of 25 square meters, and for those properties with an area less than 25 square meters, with a minimum investment of $25,000.00. • One hundred percent recognition as a deductible expense for income tax purposes of the donation of properties, construction, reconstruction, restoration, maintenance, lighting, or improvement of parks, green areas, churches, or any other site for public use and purposes.
• Municipal tax exemption for a maximum period of 10 years.
• These incentives apply to activities related to food, accommodation, recreation, information and transportation, parking development, real estate and housing development, cultural activities, and those aimed at the rehabilitation, conservation, and recovery of properties within the designated historic center zone. • Exclusions apply to private investments made in all state historical properties.

Opening of the Historic Center Authority Office.

•    Offices are established that house the first one-stop service center, where users can manage construction permits, operating licenses, and authorizations for the use of public space in a centralized manner. • The functions of the offices include providing technical assistance and tourist services.

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