What
You Need To Know About Living In El Salvador
A Forgotten Beauty ~ By Phil Davies
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My
name is Phil Davies, and I have lived in San Salvador, the capital of El
Salvador, Central America, since April 1999. El Salvador is the smallest
country in Central America, and has the highest density of population in
the region.
There are 3
major cities, San Salvador, San Miguel, and Santa Ana, but I will mostly
tell you about life in San Salvador.
Tourism is
just beginning to pick up, so investment here could be good.
Right off,
I should warn you that you will have to speak at least basic Spanish. English
here is not used a lot, but some lawyers, doctors, and engineers do speak
English very well.
Also, don’t
believe the rubbish spouted on some government web pages, El Salvador is
a beautiful country, it has its problems, but nothing close to what some
of these sites report.
I am British
by birth, but with the very high rate of tax in the UK, and the lousy weather
that was starting to play havoc with my joints. I decided to look for a
warmer and less tax invasive country where I could live, in the mid nineties.
My job as a
telecoms engineer has taken me to just about every country and capital
city in the world, but of all of the Latin American countries (and I have
worked in 90% of them), El Salvador was the one I felt most at home in.
In 1998, when I first arrived, El Salvador was already one of the safest
countries in Central America. That trend has continued to the present day.
El Salvador,
unfortunately, has a very bad international reputation, mainly due to the
war and the human rights atrocities that took place during that war, but
you have to look at the country as a criminal that has served his or her
time, and has no intention of regressing.
The people
are very friendly, and helpful, and they remember what the war years were
like, and do not want to ever go back to that time.
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| It was
the Pipil tribe that occupied the region that is today El Salvador; the
Pipil tribe strongly resisted the 1524 Spanish expedition led by Pedro
de Alvarado. The Spanish prevailed in their campaign and in 1525 the settlement
of San Salvador was founded. As part of the Spanish Empire El Salvador
was part of the captaincy-general of Guatemala. And for most of its colonial
history El Salvador was ruled directly from Guatemala. When independence
from Spain finally came to El Salvador in 1821, it resisted Guatemalan
and Mexican pressure to join the newly founded Mexican Empire. When the
Mexican Empire collapsed in 1823, El Salvador was instrumental in establishing
the United Provinces of Central America which integrated the states of
Central America into one political unit: it collapsed in 1839.(Above photo:
San Salvador) |
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El Salvador
has a very stable currency, the US Dollar. It also has the second largest
American Embassy in the world, which indicates the country’s importance
in the region. The embassy takes up a whole city block, but please don’t
let that put you off if you are American.
There are very
high concentrations of French, Chinese, German, and English speaking peoples.
The tax situation
is very good, with earnings outside of the country not being taxable. This
is very common in the whole of Central America. I only paid taxes here
when I was working locally some years ago. When I work away, I transfer
the money to my local bank account, and no questions are asked as to where
it came from, if the transfer is less than USD 5000. You can do this every
day if you wish.
Initially,
as a visitor with a 90 day visa, or a card granting temporary citizenship,
you will only be able to open a Bank Savings Account, but most banks issue
a Visa debit card against this type of account, and they are usable internationally.
I would recommend Banco Agricola, or Banco Cuscatlan.
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| The fourteen
families of El Salvador helped to establish the economic wealth of El Salvador
through the cultivation of coffee.The original crop was indigo but this
was quickly replaced by the more lucrative coffee crop. |
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The
requirements for a savings account are a passport, a NIT, and an address.
No other information is normally required. The NIT is the local version
of a tax registration number, and it can be obtained from the appropriate
government office with a passport, even if you only have a 90 day visa.
Permanent citizenship is normally granted after 5 years of legal temporary
citizenship, and will allow you to apply for mortgages, etc.
At the airport
or any border crossing, a 90 day visa is normally issued for Europeans
and Americans / Canadians. This can be renewed simply by leaving the country,
and then coming back in, 1 hour later if you wish.
In El Salvador,
a foreigner can legally own any land, property or vehicle. None of the
messing about with having to use friends or a local business is unnecessary.
Buying land or property here is a simple process. All land and property
is registered with a government office, making the verification of the
owner very easy. Use a good lawyer though to make sure. Vehicle owners
are also registered, but if you buy a vehicle, make sure that you check
at the government offices for outstanding fines. If not, you, as the new
owner will be liable to pay. Again, use a good lawyer. It does not cost
a lot.
If you want
to bring a vehicle with you, pickups carry an import tax of only 5%, so
are a good vehicle to bring. Ordinary cars carry about30%. Major car dealers
have a monopoly and are a huge rip off. There is not more than 1 dealer
per make of vehicle, and prices can be very high. For example, a new BMW
4x4 can cost USD 8000 more than what you would pay if you brought the vehicle
yourself, and paid all taxes and registration. |
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Land prices
vary, but in a very good area inside the city, you can expect to pay around
USD 100 per square metre. Prices for land in the countryside vary enormously,
but are very much cheaper than the city; you will have to do your research.
Salvadoreans have a habit of inflating their prices when they see a white
face, so initial negotiations should be done using a local face if possible.
Remember one fact though, every price is negotiable, and you are expected
to try to lower the price of any Land, Property or Vehicle that you wish
to purchase. Prices are occasionally given in the old, non-existent, currency
of the El Salvador Colone, but there is a government mandated fixed rate
of 8.75 Colones to the dollar, so the cost is easily translated. Colones
don’t officially exist anymore, but many locals still find it easier to
think in Colones.
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For
those of you that want to shop, no problems, San Salvador has 4 big (by
Central American standards) shopping malls. They range from exclusive and
expensive, to accessible and cheap. There are also ironmongers, building
accessories, computer shops, anything you want. Prices are 10% to 30% higher
than the US, as import taxes are applied. Local government taxes are 13%.
Fuel is about
USD 1.90 per US gallon for Super.
There are many
excellent restaurants, with just about any type of food you could wish
for, and there are also the normal fast food restaurants like Pizza Hut,
Kentucky, Burger King, Wendys, plus all of the local versions of them also.
Prices are, on average, 30% lower than the USA.
Public transport
here is limited to buses, but they are frequent and cheap. They can be
a little bit risky. Robbery is not as common as it used to be, as the police
ride some buses openly or covertly, but they still happen. Incidentally
DO NOT attempt to bribe the police. I have heard that Salvadorenean jails
are not quite up to international standards, and that is where you will
end up.
Taxis are plentiful
and can be found in varying states of repair. Costs vary from USD 3.00
to USD 5.00 to travel anywhere in or around the city. They can also be
hired by the hour for USD 6.00 to USD 9.00. You could drive to the Guatemala
border for about USD 45 for a round trip, to renew a visa, for example.
Most of the
roads in the city, and the major artery roads are either in the process
of being resurfaced, or already have been, with widening of the major roads
taking place. There are some bad roads, but NOTHING like I have seen in
Costa Rica for example.
El Salvador
has many excellent beaches, and the sand varies in color from Black to
White and all in between. This is because of the volcanic activity in the
past. The beaches are all on the Pacific. There is a lot of property and
land for sale on some of these beaches, at good prices. |
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| El Salvador has a large domestic
market as it has the largest and most concentrated population in Central
America. It also has the largest mall in Central America. |
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There are
many lakes, with crystal clear water, good for fishing and swimming, and
houses regularly come up for sale in these areas also.
If you want
mountain scenery, El Salvador has it. The active volcanoes, well worth
the visit.
Honestly,
you can find anything you want, and if not, you can buy the land and build
it, cheaply.
There are at
least 3 major Mayan ruins sites that I know of, all worth the visit, and
1 is only 30 mins outside the city.
El Salvador
has a major earthquake around every 20 years, and there are frequent minor
‘quakes and tremors. Don’t let this put you off the country though. Housing
standards are high, and every house is built to withstand the biggies.
There are only
really 2 seasons here, Rainy and Dry, and they are both very welcome. The
rainy season lasts from around May to November, and during this time, it
rains at least once per day, heavily, but for only a few hours, and normally
in the evening.
So, visits
would be better in the dry months, but try to avoid the Christmas week,
and the week of Easter (Semana Santa). In these periods, prices rocket
for hotels and flights, and the beaches are crowded. There are also more
road accidents, due to more cars on the road, and occasionally, drunkenness.
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| I hope
this short narrative has given you a good overview of El Salvador, but
if you have more answers email me at: rfplanner@yahoo.com |
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