When comparing El Salvador to other Central American countries, it is not the most expensive in the region—Costa Rica holds that position due to its higher cost of living and prices. However, compared to the rest of Central America, El Salvador can still be considered relatively expensive.
Keep in mind this comparison is only relative to other Central American countries. I believe Nicaragua is the most affordable country in the region, and I cannot comment on Belize as I’m unsure how expensive or affordable its cost of living is.
For example, comparing El Salvador to Guatemala, I understand Guatemala is slightly cheaper.
When it comes to Honduras, I couldn’t say for certain, but since Honduras has a larger territorial area, the cost of living (food, housing) should be cheaper compared to El Salvador.
Now, comparing prices in El Salvador to other countries, it all depends. Clearly, if we compare it to wealthier nations, El Salvador is an affordable country.
Currently, I consider the “expensive” aspect (and I put “expensive” in quotes, as it depends on one’s perspective) to be the cost of housing, whether renting a house or apartment. At least for the local population, housing prices far exceed the current wages in El Salvador.
However, for a foreigner from a country where salaries average around $3,000 USD, renting an apartment or house might seem very affordable.
As I mentioned earlier, it all depends.
Regarding the above (and before moving on), it’s important to note that the most expensive aspect in El Salvador is renting a place to live. Everything else, such as food and transportation, I consider affordable.
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What are food prices like in El Salvador?
The “worst” place to buy fruits, vegetables, and legumes is supermarkets due to their high prices. The quality is average, but the prices are the highest compared to other locations. Although there seems to be one day a week when fruits and vegetables go on sale, supermarkets are still not the best option for purchasing these items.
Supermarkets are highly frequented by Salvadorans. I believe the only issue with supermarkets is that the prices for fruits and vegetables aren’t competitive or considered attractive by most people. However, if you visit a supermarket, you’ll see people purchasing staples like meat, fish, food items, canned goods, toilet paper, cleaning products, and so on.
With that said, if you want to get an idea of food prices in El Salvador, we’ll share the names of some Salvadoran supermarket websites where you can check the prices:
Super Selectos (Website: superselectos.com): This is the largest supermarket chain in El Salvador. Despite the country’s small size, this chain operates over 110 supermarkets nationwide.
Walmart (Website: walmart.com.sv): There are currently six Walmart stores in El Salvador. This chain adds to the range of supermarket options available in the country.
Pricesmart:(Website: pricesmart.com/es-sv) This U.S.-based chain is the Latin American equivalent of Costco. There are three Pricesmart locations in El Salvador. They sell a variety of products, including unique items, and these stores (which function more like warehouse-style outlets than traditional supermarkets) add to the shopping options in El Salvador.
Note that a membership is required to shop here, and their focus is on selling products in bulk or semi-wholesale sizes.
Maxi Despensa (Website: maxidespensa.com.sv): This chain appears to be owned by the same company as Walmart in El Salvador but focuses more on budget-friendly shopping. The store layouts are simpler (some might even call them a bit unattractive), but Salvadorans don’t mind. They remain a solid option for affordable purchases.
It’s worth clarifying that, based on my observations, Salvadorans don’t typically choose supermarkets based on prices. Instead, they prioritize convenience, opting for whichever supermarket is closest to them or along their route home.
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Where can you find the cheapest prices (for food)?
Municipal markets used to be the places where you could buy cheaper (retail, not wholesale) and are still a good option for shopping. However, around 2023, places called “agromercados” (agromarkets) began to be created, and in 2024, they were promoted more, with the government investing additional funds in logistics and promotion for them.
Agromercados are sales points designed for national producers to sell their products at lower prices. Why lower or cheaper? The idea is that prices are cheaper because the products pass through fewer hands.
When a product goes through more intermediaries than necessary, its price increases, but if that supply chain is shortened and things are done properly, prices become cheaper.
There are several agromercados in El Salvador, and they are managed by the Ministry of Agriculture and Livestock of El Salvador.
The place where you can buy even cheaper is at the “central de abastos” (wholesale market). Currently, at the time of writing this, there is only one central de abastos, located in the Soyapango district, municipality of San Salvador Este.
At this wholesale market, you can buy retail, but it is primarily intended for wholesale purchases, such as boxes of tomatoes, avocados, meat, cheese, etc. If someone wants to buy just 5 pounds of tomatoes, they can do so without issues, but it is mainly designed for food businesses.
Unfortunately, there is only one wholesale market, but even so, the agromercados are also a good option.
Cost of Electricity
The cost of electricity varies depending on the area where you live.
Cost of Potable Water
The cost of water can also vary and depends on the location where you live.
Regarding potable water, people typically do not drink tap water. For drinking water, people purchase water in large jugs (garrafones). There are several companies that distribute drinking water, such as “Agua Cristal” and “Agua Alpina,” which are the most well-known.
A garrafón (just the water) costs $2.70 USD (I believe this is the current price at the time of writing) for 5 gallons of water. To purchase, the same water vendors typically deliver door-to-door, but if you live in apartments or gated communities, you’ll likely need to buy the water in person at stores.
If you’re only staying in El Salvador for a few days, you can buy water in bags (“bolsas con agua“) or bottled water at stores or supermarkets.
Garrafones are generally for people already settled in El Salvador, not tourists or short-term visitors.
Housing Cost
For someone planning to visit El Salvador for a few days or weeks, the best options are hotels or Airbnb. However, if you want to get an idea of rental prices for houses or apartments, you can search on Facebook Marketplace or classified sites like Encuentra24.com.
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Transportation Cost
Public transportation is cheap. One of the complaints from public transport operators is precisely that fare prices have not increased in years. It should also be noted that public transport providers receive government subsidies.
Using public transportation can be an option if you are not elderly. Additionally, it is feasible if you travel during off-peak hours, as during the most congested times, buses are overcrowded, sometimes packed like sardines in a can.
If you prefer to travel via ride-hailing apps like Uber, you can do so. You can read here our page discussing the transportation apps that operate in El Salvador.
If you plan to rent a car or motorcycle, you should be aware that traffic fines in El Salvador are high (you can view the list of traffic violations and their costs here). Additionally, if you drink alcohol, you must not drive, as this will lead to serious consequences: you will be handcuffed, jailed, and required to face legal proceedings.
Therefore, you should not drive even if you only consumed a single alcoholic beverage. You can read our publication “Warning: A Single Drink Behind the Wheel Can Mean Prison Time“ for more details on this topic.
Cost of Internet and Telephony
To learn about the cost of internet and phone services, we first recommend reading our publication “Internet Service Providers (ISPs) in El Salvador: A Complete Guide“, where you’ll find the list of internet providers. By visiting their websites, you can check their prices.
These same companies also include telephony providers. The main telecommunications companies are Claro, Tigo, Movistar, and Digicel, though the latter is overshadowed by the first three.
Income Tax
This is the most annoying tax. Unfortunately, in 2014 (I don’t recall the exact year), the socialist government increased the income tax percentage under the excuse that “those who earn more should pay more.” Obviously, taxes are already percentage-based to ensure higher earners pay more, but socialists and their destructive policies are like that.
If you’re wondering what happened to that socialist party, it is the party that lost the 2019 elections to Nayib Bukele. Since then, it has been rejected by the vast majority of Salvadorans, save for a few remaining fanatics here and there. That political party has been in decline, and given the current trajectory, it is on the verge of disappearing.
If I’m not mistaken, everyone used to pay 10% as income tax, but currently, the rate increases to 20% or even 30% if a certain income threshold is exceeded. Hopefully, the current government will change this in the future.
There have already been some improvements, as—to my understanding—income earned abroad is not subject to income tax. I need to look into this topic further.
Additionally, the government has implemented other policies to incentivize the inflow of foreign capital and encourage foreign investment. Among these policies are the “Law for the Promotion of Innovation and Technological Manufacturing of El Salvador“ and initiatives related to high-rise building investments, which we briefly discuss in our publication “Why El Salvador is Becoming the Skyscraper Capital of Central America“.
If you simply want to visit El Salvador and spend your money without being questioned, as of late 2024, stores or businesses are prohibited from requesting identification for purchases under $25,000 USD. We covered this in our publication “No ID for Purchases Under $25,000 in El Salvador“.
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On-Site Experience
If you want to understand what life and the cost of living are like in El Salvador, the best approach is to visit the country for a few weeks and see and experience it firsthand.
In tourist areas, food and goods will obviously have higher prices, but in places where the local population typically shops, you’ll find normal prices.
We hope this guide helps you understand the cost of living in El Salvador. If you’d like to watch related YouTube videos, search in Spanish for “costo de vida en El Salvador” (cost of living in El Salvador) and activate the English subtitles.
