El Salvador
National Level
Gobierno Central
Intermediate/Regional Level
Departamentos 14
Local Level
Municipios 44
National Urban Policy
- National urban policy type:Partial - Housing and Habitat PolicyPolicy temporality:Long-term
-
El Salvador is a unitary republic. Its Political Constitution encouraged the decentralization process, designating municipalities as autonomous governments in technical, economic, and administrative matters. Municipal authorities have the power to regulate their own taxes. Departments are merely administrative and deconcentrated divisions representing the central government.
The main sources of municipal revenue are transfers from the central government, which account for an average of 62% of local revenues (2024), indicating a high degree of dependence, followed by fees, licenses, and local taxes. Among local taxes, the most important is the business tax (impuesto de giro), which is levied on the assets, capital, and profits of economic activities carried out within the municipality. El Salvador does not have a property tax: it is the only country in Central America without a general and recurring tax on real estate.