El Salvador - Tax breaks for technology firms signed into law after US Senator visit
Technology firms appear to be pulled into the Northern Triangle by a quiet US bipartisan effort.
On 4 May, president of El Salvador Nayib Bukele approved a law that will cut tax on technology. The law names software, AI, and communications hardware manufacturing as subject to the law.
It is an interesting time to execute tax breaks for the technology sector. US Senator Marco Rubio is fresh off an official visit to El Salvador, where Rubio surveyed Bukele’s security measures firsthand. There were waves of layoffs in the US tech sector last year. In April, crypto exchange Bitfinex received a license that will allow investors to access bonds and other tokenized securities in El Salvador. It is very likely that the Bitfinex infrastructure is part of a puzzle to pull Bitcoin-related technology investment into El Salvador.