Salvador – a poor country, but not cheap

The smallest and most populous from Central American states – the Republic of El Salvador – the only one in Central America has no way out to the Caribbean. But relatively deserted Pacific beaches attract windsurfing fans here: here the coolest waves in the whole region. The people of El Salvador "did not depart" From the eleven-year-old civil war, the desires of the brigades of death and corruption, so the government does everything possible to attract foreign investment to the country. It can be said that the buyer with dollars has been released here.

Unlike some other Central American countries, a foreigner in El Salvador is allowed to acquire any land in their name, including areas on the coast, without any restrictions. However, those who come to El Salvador are not a month, but for a longer period, prefer not a three-hundred-meter coastline, but the capital of San Salvador. Despite the fact that the city does not have a special beauty of the city and sitting tourists are no landmarks here, some of the foreigners the capital to seduce capable. In stores there are always the last collections of clothing from the USA (American products make up a third of all imports). In the capital’s cinemas, the premieres of Hollywood tapes at $ 2.5 per ticket, and prices in restaurants can be considered quite moderate.

Located in the Alpine Valley, surrounded by volcanic peaks and green hills, San Salvador is very overcoiled. Earth deficit contributes to high cost. Although in terms of a US citizen, real estate can be called accessible, the price of good housing for the middle class representative is still higher than that of the neighbors: sometimes this difference reaches a hundred percent.

Wealth and poverty here are presented in the whole, but every property "caste" lives in its own cheating borders. Foreigners who live outside San Salvador, as well as on its outskirts – in Santa Ana, San Miguel, Sonsonante – You can recalculate on your fingers. Weightful quarters are located in the northern and western parts of San Salvador, above Downoutaun. The subjects of foreign states are usually justified in "Colonia" Escalon, San Benito, San Francisco or Colonia Altamira.

Houses with a semi-chamber of the Earth (approximately 20 acres), at least four bedrooms, pool and room for servants in these areas are sold at a price of $ 120.000 to $ 700.000 for class objects "High End". Rental rates for housing, acceptable from the point of view of Europeans or American, are $$ 1.000-4.000 per month.

But this, so to speak, "Stereotypical" Expatriate settlement zones. As it usually happens, you can live at no less safe for their borders and buy no less pretty home much cheaper: for $$ 50.000-90.000. The minimum price of the apartment in such not yet "Divided" Buyers towns range from $ 30.000, for rent asking about $ 250 per month. Buying not necessarily paying the local currency, real estate sellers will gladly take dollars from you. But the difference, in principle, is small: a policy is held in the country to establish a fixed rate of the National Colon at the level of 8.75 per dollar.

Pure, scattered streets of prestigious places of the capital emit silence and calm. Villas, however, are acquired by high fences and securely guarded. The fact is that in many other areas of San Salvador life can not be calm in any way. Little alien will wait for pockets, then car thieves, and even street gangs. 2 percent of the country’s population have tremendous states. To the middle class you can rank another 8 percent of residents. The rest, that is, the overwhelming majority of Salvador’s citizens, live beyond poverty. The seats of criminal elements are fueled at the expense of those Salvadorians who left the country during the Civil War, did not accumulate money, and now they return home, where they have no cola, no yard.

In short, the countryside is better not to ride alone, and at night on some streets of San Salvador do not hang out (nightly entertainment areas – Zona Rosa, Boulevard de Los Heroes and Colonia Escalon – not counting). A criminal situation in a particular area when making a purchase must be taken into account in the first place.

All objects are registered in Instituto Libertad Y Progreso – the State Body, which is responsible for accounting of real estate owners. The fact of enhancing in such a registry, as in all countries of Central America, is considered one hundred percent evidence that the owner – the owner is genuine.

Most of the prosperous residents of Salvador, as well as immigrants from abroad have a servant. Wishing to earn money from a new homeowner will be enough. However, paying domestic servants and qualified personnel will have to be more than in the neighboring Honduras ("I" wrote about this country last year in b 48 (207), with.23). Salvadoran maids are used to getting for their work an average of $ 125 per month. If the Financial Cases will require the assistance of the secretary, this will need another $ 300. The driver’s work is valued a little cheaper – $ 225.

According to estimates who are constantly living here, aliens, a married couple without children can provide a comfortable life in El Salvador for some $ 1.000- $ 1.200 per month. Naturally, provided that you have already purchased. As in other Latin American countries, the meal from the market can lay your expenses compared to those who feed from the store. Electricity costs 8 cents per kilowatt / hour.

Military events and political instability remained in the past, and now the country with the help of the International Monetary Fund firmly rose to the path of capitalism. Foreign investors in El Salvador are becoming more and more. The Economic and Social Development Fund of Salvador (Fusades) justifies the benefit of investment in the country’s development by the following reasons. First, from time to time, the state announces the denationalization of this or that enterprise, and for foreign investors it is a fairly good chance to hinder with investment. For the organization, business here does not necessarily register the joint venture, the capital of the enterprise may be 100% foreign. The visitors can freely open bank accounts in Salvador: both dollar and perceptions in local collens. Companies operating in the territory of free economic zones (in total four of them) are encouraged by benefits when charging income tax and customs benefits for a period of up to 10 years with the possibility of extension. The only condition for obtaining benefits is that all products produced in Salvador must be exported beyond the central American region. As for the sphere of activity, the Government of Salvador is interested in the founding of enterprises actively using manual labor. Services of hired unqualified Salvadoreans are exceptionally cheap. Minimum salary recorded here – 70 cents per month.

Foreign investors who want to constantly live in the country must submit to obtain a residence permit. To qualify for a resident status, you must have only professional qualifications, which ensures that you do not replenish the ranks of local poor, or, as usual, to present a guaranteed source of income.

In El Salvador distinguish 4 varieties of resident status. "Temporary" – For foreigners who came to the country. "Constant" – For those who prove that he spent at least 5 years in El Salvador. "Resident-Earlier" (RENTISTA), which is issued to foreign pensioners having a source of cash receipts outside the country. And finally, "Investors" residence permit issued by those who come to Salvador to do business here. To obtain a residence permit no cash donations are required. Only traditional papers from the relevant instances and medical certificates.

In 1992, the value added tax rate in El Salvador was installed at 10 percent. Income received, outside the borders of Salvador, is not taxable. Commercial enterprises that belong to foreigners will have to contribute to the poor Salvador budget 25 percent of their profits. Those who hoped that a poor country for mercenary goals will sooner or later facilitate the tax burden for investors, it is not necessary to encourage. Tax paradise like Panama Government El Salvador is not going to build, arguing that the colon in the hands is currently better than a dollar caravel in the sky.