© Larm USA, Inc.

EL SALVADOROverview & Best Practices

© Larm USA, Inc.

THE BELOW IS A BRIEF SUMMARY OF SOME OF THEITEMS THAT LARM WILL GUIDE AND LEADTHROUGHOUT THE RELOCATION PROCESS FOR THEEXPAT ONCE APPLICABLE SERVICES AREAUTHORIZED;

LOCAL REGISTRATION

Registration:

• In El Salvador it is not required to register withthe Police Authorities. Only the Visa withWorking Permit is mandatory, process that will bmanaged by the firm designated by theemployer. The employer must register by lawthe employee with other entities such as ISSS(Instituto Salvadoreño del Seguro Social) and theAFP (Administradora de Fondos de Pensiones).

TIN:

• It is required to register at Ministerio deHacienda to obtain the Tax IdentificationNumber, process where LARM can assist as partof the Settle In Assistance. Copy of passport isthe only required document.

DUI:• (Documento Unico de Identidad) Unique Identity

Document is the main document issued to allSalvadoreans. Expats will receive from MigrationOffice the Identification Document with theWorking Visa which will be the only approvedlegal document for expats.

HOUSING

Common Leases Terms:

• Real Estate Market: In El Salvador there is NoMLS system to manage properties. The standardis to work with realtors in order to find bestproperty.

• Reservation Deposit: This is part of securing thedesired home, whereby, the Expat/Companymust provide a deposit to secure the property inorder to get it out of the real estate market. Itcan be either 1/2 of the security deposit, or thewhole security deposit required by the landlordof the property is selected; A receipt is providedby landlord.

• Security deposit: The security deposit required inEl Salvador is the equivalent to one month rent.It can be provided by cash, local check or wiretransfer, depending on the landlord and termsof agreement. If a Reservation Deposit wasprovided to secure the property, this becomesthe Security Deposit.

• Realtor's Commission: The equivalent to onemonth rent. It is paid by the Landlord.

• Home insurance: Landlords are responsible toinsure their properties, but this is not mandatoryby law. Its is recommended for expats to buy anInsurance Coverage for their belongings(household effects) during their stay in ElSalvador, but this is optional.

• Lease Increase: It is standard that lease increasesbetween 2.5% to 5% when extending the leasecontract for additional periods, depending onthe Inflation Rate. However, this is negotiatedsince the Initial Lease Agreement. The minimumlength of the leases in El Salvador is one year,but they can be signed for longer periods.

© Larm USA, Inc.

HOUSING CONT.

• Lease Cancellation: Most landlords will agree to a Diplomatic Clause which allows the client an early cancellation if there is an international transfer required. However, if the early termination is for other purposes, there will be penalties involved depending on the landlord and the agreed terms. Some landlords might not agree to any early termination and will ask a minimum penalty of not returning the Security Deposit, but all this is agreed when signing the initial lease.

• Guarantor is not required in El Salvador: Typically landlords will only required a letter from the local corporation confirming client is coming to work for them.

• Condominium Maintenance and Security Fee: Note that it is standard to negotiate the Condominium Maintenance and Security fee within the lease agreement.

• Utility Bills: All utility bills will never be included in the lease agreement and will be full responsibility of the client. They can be paid through Banking Online, at banks or at designated stores/supermarkets

• Currency: Note that El Salvador’s legal currency is the US Dollar since January 1, 2001.

• Lease Templates: Although most companies would prefer using their own lease template, it is typical that landlords required to use their own lease template or to dictate some of their actual lease terms and clauses.

EDUCATIONThe best education in provided in private schools.

• In El Salvador, we have two educational systemscalendar and both are approved by El SalvadorMinistry of Education. The Salvadoran Systemwhich goes from January to October and theAmerican System which goes from August toJune for all private bilingual schools.

• The most important bilingual (English/Spanish)Schools are The American School, The BritishSchool and the International School of SanSalvador. However, there are other privatebilingual schools with high prestige andrecognized educational quality. Note there arealso other European Bilingual schools like theFrench School and the German School.

• Fees will vary depending on the school selected,so the LARM will assist as part of the orientationand school assistance, in setting upappointments so information is provided directlyby the school with regards to fees, tuition,education program, requirements, etc.

• All schools will require children to be tested priorto acceptance. Note acceptance will also dependon availability at schools so it is recommended toselect a minimum of two schools and havechildren tested on both to have more chances ofsecuring the school, unless guaranteed by theschool since their initial visit.

© Larm USA, Inc.

DRIVER’S LICENSE

• Tourists in El Salvador can drive with theircurrent valid home country Driver’s License up to3 months, but they need to carry with them theirpassport to prove their last entry into thecountry. Otherwise, they will be subject topenalties and fines.

• In order for foreigners to apply for El Salvador’sDriver License, they will need to present asrequired documentation, their SalvadoranIdentification with Resident/Working Visa toprove their legal stay in the country, as well asthe local Tax Identification Number (TIN) andtheir current valid home country license to avoida written and practical exam.

• Note that the process of obtaining the DriverLicense in El Salvador is strictly personal, soforeigners will be required to take visual examand pay the corresponding fees for the issuing ofthe driver license.

BANKING IN EL SALVADOR

• El Salvador has a very solid banking systemcomposed mainly by foreign banks likeBancolombia (BancoAgricola), Banco Cuscatlán,Banco Davivienda, Scotiabank, and other foreignand local banks.

• Local Currency is the US Dollar since January 1,2001, and the Salvadoran Colon is used only asreference by some entities at an exchange rateof 8.75 per US Dollar, but it is not in circulationsince the US Dollar was adopted as localcurrency.

• Wire transfers can be sent to and received fromanywhere in the world.

• Bank accounts can be easily opened by expatsonly after receiving their Resident/WorkingIdentification Document in El Salvador.

• There is a wide ATM system where expats canwithdraw cash at any time, but note there is alimitation of US$500.00 per day that can bewithdrawn, so it is recommended to bring someextra cash for their initial expenses. Funds overUS$10,000.00 in cash will need to be declared bylaw when entering the country.

© Larm USA, Inc.

BEST PRACTICES

• Expats can not be declared in local payrolls in ElSalvador until working visa is issued. Workingand receiving salary without the working visabeing approved will be subject to high penaltiesto the employer and risk of deportation ofexpats.

• 10% tipping is generally accepted in restaurantand other service places. Always check your billsas most restaurants will include tip on it.

• You must take into consideration securitypreventions when walking or driving in ElSalvador, like in most places to avoid becoming avictim of common crime.

Safety

• Always be aware of your surroundings

• Keep your belongings close to you

• Do not provide personal information to strangers

• Do not take public transportation or street taxisduring night time . El Salvador has other meansof transportation such as Uber.

• While driving do not put your purse on the seatnext to the driver.

• Always lock your car doors

• Avoid shortcuts in dark streets or unsafe areas.

© Larm USA, Inc.

LARM HEADQUARTERS (USA)P +1 (954) 239-4081 F +1 (954) 239- 4086

larm@larmgroup.com

LARM EL SALVADORP (503) 2210 - 3200

elsalvador@larmgroup.com

www.larmgroup.com