Salvadoran legislation!

There are two different statutory laws covering landlord and tenant issues, according to the use of the property: hotel apartments

If the property is used for housing purposes or is leased to a public entity or a duly authorized profession, the lease is covered by the Renting Act (effective March 1st 1958, last amended in 1990). This Act includes most of the above restrictions, including the reasons for rent adjustment and the duration of the agreement. Despite the protectionist provisions of this Act, the content of the average tenant/landlord is little known.

When leasing for household purposes, the landlord is obligated to withhold 10% income tax of rent each month if the landlord has his place of residence in El Salvador, or 20% if the landlord does not have his place of residence in El Salvador. This rent is then delivered on behalf of the landlord to the Treasury. The landlord has the right to a tax receipt withdrawn, which is credited to his annual income tax if it is duly issued. Housing rent is also exempt from 13% VAT.

If the property is used for business purposes, the lease is subject to less protective provisions under the Civil Code (effective since 1860), and the contractual agreements of the parties overcome the provisions of the Code. The rent is 13% VAT; likewise, unless the landlord is a VAT contributor, the tenant should withhold 10% VAT from the rent every month when the landlord lives in El Salvador or 20% if the landlord is not resident in El Salvador, as described above.

How effective is the legal system in El Salvador?

Wooden houses and villas in El Salvador

The Salvadoran judicial system is permanently saturated, and it may take at least a year for the Court to reach its final decision in first instance, subject to the Attorney's diligence and the absence of special events, such as the appeal of non-final resolutions.

In principle, a process for collecting outstanding rents would take about 20 days. The landlord can file the claim on the 8th day of the tenant's default, and the tenant has 48 hours to object and there is a four-day period for proof to be provided. The judge should rule within the next three days once the term elapses. If expulsion is requested for another reason, the tenant has three days to object. Eight days are required to provide evidence and the judge has five days to declare the final decision. However, in practice, these terms are interrupted by several delays in the delivery of non-final resolutions and different events.

The tenant has between eight and 15 days to surrender the property if the final decision by the judge has declared an expulsion. In the absence of this term the landlord can ask the judge to order the police intervention.

Non-payment EVICTION OF RENT

Duration until process service is completed 45

Trial Duration 60

Enforcement Duration 45

Total Evict Tenant Days 150

Courts: The Project Lex Mundi

Brief History: Recent changes in landlord and tenant law in Salvador

Renting was originally regulated by the Civil Code of 1860. The Renting Transitory Act was enacted and repeated during the first half of the 20th century until 1958, when the Legislative Assembly enacted the current Renting Act. Despite this, the rental legislation of the Civil Code remains effective and applicable for leases outside the scope of the rental law.

No serious attempt has yet been made to enact a new law or to amend the present law.