In its 2024 Investment Climate Statements, the U.S. Department of State has provided a comprehensive review of property and intellectual property rights in El Salvador, shedding light on both protections and challenges faced by investors in the country.
Property Rights Overview
El Salvador’s legal framework recognizes and protects private property, both real estate and non-real estate. Investors considering property acquisitions are advised to seek local legal expertise to verify property titles. The Constitution limits land ownership to 245 hectares (605 acres) per individual or entity, with exceptions for industrial purposes and reciprocity in rural land ownership.
The transfer of real property does not require government authorization, but proper registration is essential for validation. Rental laws tend to favor tenants, with protections against eviction and regulations on rent increases. Additionally, squatters can acquire title to property under specific conditions, but this does not apply to public land.
Municipalities have significant authority over zoning, though zoning maps are often not publicly available. Disputes can be lengthy, and the execution of real estate guarantees is challenging.
Intellectual Property Rights
El Salvador boasts a strong intellectual property rights (IPR) framework, revised to align with CAFTA-DR standards. The country has extended copyright terms and established robust laws for trademarks, patents, and copyrights. Recent developments include a new online IPR management platform and the creation of Technology and Innovation Support Centers to aid innovators and entrepreneurs.
While there have been notable advances, there are still opportunities to enhance enforcement efforts. With ongoing efforts to address resource and expertise challenges, we can improve the effectiveness of intellectual property rights enforcement. Recent reports highlight the continued vigilance needed, including notable seizures of counterfeit medicines and pirated software. Customs officials are actively working to address counterfeit products entering from various sources, including China, demonstrating a commitment to tackling these issues head-on.
El Salvador is a signatory to several international IPR treaties, including the Berne Convention and the WIPO Copyright Treaty, underlining its commitment to global intellectual property standards.