Tax in El Salvador

EY Law Central America

Highlighted for its ‘knowledge and experiencethe powerhouse tax controversy team at EY Law remains a market leader, representing major multinationals in litigation before the Salvadoran Tax Authority and advising on the tax aspects of establishing their operations in the country. Headed by Héctor Mancía, who has over 27 years of experience in the tax arena, the group advises on the tax aspects of cross-border restructuring processes and M&A, free trade zone matters, the preparation and review of tax returns, and the planning and execution of tax compliance audits. Key support  is provided by managers Magdalena Tobar, who is a tax compliance specialist, and Daniela Vargas, who handles complex corporate restructurings, and senior manager Carlos Gaitán, an expert in administrative and judicial tax litigation. The team’s wide-ranging client base spans such sectors as banking, hospitality, logistics, retail, oil and gas, pharmaceuticals and transport.

Practice head(s):

Héctor Mancía


‘The team understands banking operations, which puts them in a better position to give advice.’

‘They provide legal and tax advice that is adapted to our needs. They differ from their competitors due to the solidity of their knowledge and experience, which generates absolute confidence in us. Héctor Mancía and Carlos Gaitán are outstanding.’

‘Héctor Mancía’s years of experience are evident in all the advice he provides.’

‘Daniela Vargas is always aware of the client’s needs and always provides an agile service.’

‘The team have a robust understanding of the tax administration’s actions as well as an up-to-date awareness of the areas under review, which allows us to anticipate the issues that might be objected to. The support is specialised and thorough.’

‘They get fully involved in the cases in which they are giving us support, always anticipating what the tax administration’s next step will be. We work very well with Carlos Gaitán: he is always very closely involved in the process, contributes ideas and advice on best practice, and is always available when support and accompaniment is required in meetings with tax auditors, which adds a lot of value.’

‘What stands out is the team’s experience and knowledge of the different issues that they advise on, the trust that we have built with the firm and its invaluable support in meeting our objectives.’

‘EY’s team of tax lawyers actually provide a regional service, with a single point of contact who manages the entire relationship with the client and is involved with the client’s matters in all the countries in question.’


The experienced team at regional firm Arias provides full range of tax services to major multinational corporates and investors seeking to establish operations in the region, including assistance with planning, due diligence, regulatory compliance, transfer pricing, and representation in administrative and judicial tax cases against the tax authorities. The team displays strength in the oil and gas, beverages, and banking and finance sectors. Luis Barahona, a veteran litigator and former director at the Internal Revenue Service, leads the practice, with expertise in precautionary audits and tax risk detection. Support is provided by senior counsel César López, a specialist in customs and municipal taxes, and senior associate René García  , both of whom received promotions in November 2021.

Practice head(s):

Luis Barahona


‘The collaboration of the team and their involvement in solving problems has been an element that distinguishes them from the rest of the firms with which I have worked in the country.’

‘César López is available to solve our day-to-day problems, and feels like a member of our team. He is committed to the success of the company.’

Consortium Legal

The team at Consortium Legal leverages the bench strength of its network in Central America (with offices in Costa Rica, Guatemala, Honduras, El Salvador and Nicaragua) to advise regional and multinational corporates, financial institutions, individuals and entrepreneurs on a diverse spectrum of tax issues over the entire business life cycle. Headed by Diego Martín-Menjívar, who has expertise in tax and customs litigation at the administrative and judicial levels, the practice has a full-service offering which covers the tax aspects of M&A, company incorporations and licensing agency contracts, in addition to assistance with audits and inspections and estate planning. Tax assessment specialist William Escobar, who was promoted to senior associate in April 2022, adds experience in the processing of tax consultations before the General Directorate of Internal Taxes. The team remains active in the renewables, consumer products, food and finance sectors.

Practice head(s):

Diego Martín-Menjívar


‘The team stands out for its knowledge of tax regulations.’