El Salvador, once primarily known for its past struggles, is rapidly emerging as Latin America’s next big investment destination, particularly within its booming tourism property sector.
A confluence of drastically improved security, strategic government initiatives, and an increasingly vibrant cultural scene is drawing significant attention from international investors, especially from the UK and Europe.
The country’s transformation is perhaps best exemplified by its bold “Surf City” project, which has put its Pacific coastline firmly on the global map. Areas like El Tunco and El Zonte, once quiet surf towns, are now experiencing a luxury real estate boom, driven by a surge in tourist arrivals and an increasing appetite for high-end hospitality. This interest is not just speculative; it’s backed by concrete investments from major players.
A significant vote of confidence recently came from Marriott International, which has signed a strategic agreement to introduce four City Express by Marriott hotels in El Salvador, marking the brand’s debut in the country. These properties are expected to open through 2027. The lineup includes: City Centro by Marriott San Salvador, one of the initial properties set to convert by the end of 2025; City Express by Marriott Aeropuerto, expected to open in late 2026; City Express by Marriott Santa Elena, also opening in 2026; and City Express Plus by Marriott San Benito, to be introduced by late 2027. This expansion underscores the heightened confidence global investors, developers, and corporations now have in the country’s stability and growth potential.
What makes El Salvador so attractive now? Beyond its stunning natural beauty and world-class surfing breaks, the country has undergone a remarkable security transformation. El Salvador is now recognized as the safest country in the Western Hemisphere, surpassing even Costa Rica in terms of security. This drastic improvement has created a stable and welcoming environment for both tourists and investors, fostering a climate where long-term investments can thrive.
Many analysts are now drawing parallels between El Salvador’s current trajectory and Costa Rica’s successful tourism investment cycle. With its newfound stability and focused development, El Salvador is well-positioned to replicate, or even exceed, that success. The government’s proactive approach to tourism, including infrastructure investments and incentives for tourism-related projects, further sweetens the deal for foreign capital.
“We are witnessing an unprecedented level of interest from European investors,” notes Vilma Guerrero, a real estate expert at Vivo Latam, a leading real estate agency in El Salvador. “They see the incredible potential in El Salvador’s coastal developments, from boutique hotels to eco-resorts and luxury beachfront residences. The combination of enhanced security, stunning natural assets, and favorable investment conditions is creating a unique window of opportunity that many are keen to seize.”
The Digital Frontier: Bitcoin and Tech Innovation Paving the Way
Adding another layer of unique appeal, El Salvador’s pioneering adoption of Bitcoin as legal tender in 2021 has created a distinct niche for “Bitcoin tourism.” This bold move has drawn a new demographic of visitors, particularly from the United States and Europe, eager to experience a Bitcoin-centric economy firsthand. Over 500 tourist establishments now accept Bitcoin, with many reporting a significant increase in income from Bitcoin-savvy travelers. This has spurred a rise in Bitcoin-related investments, including real estate transactions using digital currency in popular areas like La Libertad and El Zonte Beach.
Further solidifying its commitment to becoming a regional tech hub, El Salvador passed the Law for the Promotion of Innovation and Manufacture of Technology in May 2023. This groundbreaking legislation offers substantial tax benefits for new tech companies establishing operations in the country. For a period of 15 years, qualifying businesses can enjoy total exemptions from income tax, capital gains tax, municipal taxes on net company assets, customs duties, and taxes on the importation of essential goods and equipment. This applies to a wide range of activities, including software development, cloud computing, AI, data analytics, blockchain technology, cybersecurity, and even the manufacturing of tech hardware and semiconductors.
Further underscoring this trend, Tether, the world’s largest stablecoin issuer, has recently announced its complete relocation of operations to El Salvador. This strategic move follows Tether’s acquisition of a Digital Asset Service Provider (DASP) license in the country and reflects its confidence in El Salvador’s supportive crypto ecosystem. Tether CEO Paolo Ardoino, along with other executives, is also reportedly moving his residence to the Central American nation. This significant relocation by a leading cryptocurrency firm, coupled with plans to build a 70-story “Tether Tower” as its headquarters and to hire local talent, solidifies El Salvador’s position as a burgeoning hub for digital finance and innovation.
This favorable regulatory environment is already attracting global tech giants. In April 2024, Google officially opened its offices in El Salvador, a move stemming from an August 2023 agreement with the Salvadoran government focused on digital government, health, and education. This significant entry by Google is seen as a harbinger, with other major tech companies now reportedly eyeing the country as a potential new base, including cryptocurrency firm Tether and video platform Rumble, both of which have recently announced significant moves or expansions in El Salvador. This influx of tech investment and talent is creating a dynamic new ecosystem, further boosting economic growth and demand for both commercial and residential property.
