Over the past few years, El Salvador has embarked on an ambitious path to become a regional hub for innovation and emerging technologies. Through a series of strategic laws focused on digital transformation, the country is creating a legal ecosystem that favors investment, fosters entrepreneurship, and promotes cutting-edge research and development.
Below is a summary of the most relevant laws directly related to technology and innovation, which together make up the legal foundation of this vision:
📊 Table of Technology-Related Laws in El Salvador (Sorted by Year)
| Law | Year Approved | Objective |
|---|---|---|
| Bitcoin Law | 2021 (reformed in 2025) | Made Bitcoin legal tender and promoted adoption of cryptocurrency nationwide. |
| Digital Assets Issuance Law | 2022 | Established a regulatory framework for issuing digital assets, such as blockchain-based tokens and bonds. |
| Criminal Code Reform (Digital Evidence) | 2022 | Recognized the legal validity of digital evidence in court proceedings. |
| Technology Innovation and Manufacturing Incentives Law | 2023 | Granted 15-year tax exemptions for companies in software, hardware, AI, cloud, robotics, and more. |
| Cybersecurity Law | 2024 | Created a national cybersecurity agency and defined obligations to protect critical digital infrastructure. |
| Personal Data Protection Law | 2024 | Defined digital data rights and duties for personal information processing. |
| New Intellectual Property Law | 2024 | Modernized IP protections for software, creative works, and technological inventions. |
| Artificial Intelligence Promotion Law | 2025 | Promotes ethical development and application of AI; establishes the National AI Agency (ANIA). |
| Robotics Technology Law | 2025 | Fosters R&D and manufacturing of robotic solutions through incentives and regulation. |
A Broader Strategy for National Development
While the laws listed above are directly focused on technology and digital innovation, El Salvador has also passed a broader set of reforms and legal instruments aimed at stimulating national development and attracting investment across multiple sectors.
These include:
- Infrastructure modernization laws
- Customs and logistics streamlining
- Tax incentives for strategic industries
- Public-private partnership (PPP) frameworks
- Education and skills development programs in science and engineering
Together, these initiatives reflect a comprehensive strategy to transform El Salvador into a competitive, forward-looking economy.
With this evolving legal framework, El Salvador is positioning itself as one of the most innovation-friendly countries in Latin America. While some laws—particularly those on cybersecurity and data—have generated debate, the overall vision remains clear: to create the right conditions for tech startups, global investors, and digital pioneers to thrive.
If you’re considering investing, expanding, or launching tech operations in the region, El Salvador is worth a serious look.
Please follow us on X!
Follow @ElSalvadorENx