Living and investing in San Salvador's Centro Histórico
San Salvador's Centro Histórico is the downtown around the Cathedral, the National Palace and the National Theater, now in a government-led revival with new businesses, street works and tax incentives for approved projects. Here's how that works, what living downtown is like, and the apartments and property for sale nearby.
| Where | Downtown San Salvador, in the San Salvador district of the municipality San Salvador Centro |
|---|---|
| Who runs it | APLAN, the historic-center planning authority created in 2023 and attached to the Ministry of Tourism |
| Managed area | About 80 blocks downtown; the tax incentives cover new investments in about 70 of them |
| Investment so far | More than $177 million in private investment handled since 2023, and 40+ new businesses in 2025 |
| Housing | Mixed-use zoning; APLAN favors apartment buildings, hotels and conversions over single-story homes |
Property for sale in Centro Histórico de San Salvador
Living in Centro Histórico de San Salvador
The tax incentives, in plain words
Under the 2023 law that created APLAN, renovation and new-investment projects that APLAN approves can get 10 years without income tax on the income they produce and up to 10 years without municipal taxes. The minimum is $1,000 per m² of property worked on, or $25,000 for spaces under 25 m². Housing and real-estate development count. Simply buying a property doesn't qualify, and APLAN said the incentives would roll out through 2026. Check your case with a lawyer or accountant.
What kind of housing fits
APLAN's director says there's no room downtown for single-story homes, but there is for apartment buildings, hotels and short-term-rental conversions. A 15-year zoning plan with a housing component was being prepared in 2026.
The revival
More than 40 new businesses opened downtown in 2025, and by August 2026 APLAN counted about 1,000 projects. Underground cabling, new water mains and cobblestone streets were about 40% done in August 2026.
Library, parking and transit
The new national library (BINAES), opened in 2023 next to the Cathedral, is free. APLAN counts more than 3,500 parking spaces and says more are needed. The old Sitramss bus line has stopped running, and a monorail or cable car is only being studied.
Earthquakes
The October 1986 earthquake destroyed downtown buildings, including the Gran Hotel San Salvador. Older buildings need a structural check.
Is it right for you?
Investor in renovation or rentals
Good fitApproved projects can get 10-year income and municipal tax breaks, and APLAN wants apartments, hotels and rentals; heritage rules can stretch timelines.
Professional or commuter
DependsThe seat of government and busy commerce, but transit is in flux and parking is short.
Retiree
DependsTheater, Cathedral and library within walking distance, while street works continue.
Remote worker
DependsThe free national library is downtown; check internet at the exact building.
Family with kids
DependsThe library is here, but the housing plan is still being drafted.
Beach lover
Not idealIt's an inland city center; the beaches are in La Libertad and La Paz.
Fun facts
- 1
The National Theater opened in 1917, designed by French architect Daniel Beylard, and was declared a national monument in 1979.
- 2
In the National Palace, the Yellow Room was the president's office until 1930, and the Blue Room held the Legislative Assembly until 1974.
- 3
The current Metropolitan Cathedral took 43 years to finish, from 1956 to 1999, and holds the tomb of St. Óscar Romero.
- 4
The first Central Reserve Bank building has a small currency museum and a vault with giant doors you can walk into.
- 5
The historic Cine Libertad was close to reopening in 2026.
Frequently asked questions
Are there tax breaks for investing in San Salvador's Centro Histórico?
Yes, for approved projects. Under the 2023 APLAN law, renovation and new investments APLAN approves can get 10 years without income tax on the income they produce and up to 10 years without municipal taxes, with a minimum investment of $1,000 per m². Check with a lawyer or accountant.
Is there a tax break just for buying a property downtown?
None that we found. The incentives cover new investment and renovation that APLAN approves, not the purchase itself.
What is APLAN?
The government authority, attached to the Ministry of Tourism, that approves and oversees projects in the historic center and runs a one-stop permit office.
Can you live in the Centro Histórico?
Yes. Zoning is mixed use, including housing; APLAN favors apartment buildings, and a housing-focused zoning plan was being prepared in 2026.
More about San Salvador
Centro Histórico de San Salvador is part of San Salvador department. See what the rest of the department is like, who it suits and its fun facts.
Sources
Facts checked 2026-10-25.
- 1. Jurisprudencia.gob.sv: Reglamento de APLAN (cites Decreto Legislativo 707, Diario Oficial 69, 2023)
- 2. Diario El Mundo: Inversiones en el Centro Histórico que gozarán de incentivos (nuevo reglamento de APLAN)
- 3. Diario El Mundo: Inicia vigencia la ley de incentivos al Centro Histórico
- 4. El Diario de Hoy: APLAN ha tramitado 800 proyectos (2025)
- 5. Diario El Mundo: Los 44 municipios y los 262 distritos
- 6. El Diario de Hoy: Centro Histórico, nuevos negocios en 2025
- 7. El Diario de Hoy: Avance de las intervenciones en el Centro Histórico (agosto 2026)
- 8. Diario El Mundo: En el Centro Histórico no hay espacio para vivienda de una planta (director de APLAN)
- 9. Diario El Mundo: APLAN identifica más de 3,500 espacios de parqueo
- 10. Revista E&N: Inauguran la Biblioteca Nacional (BINAES)
- 11. El Diario de Hoy: Desmontaje de estaciones del Sitramss
- 12. Diario El Mundo: El terremoto que devastó San Salvador en 1986
- 13. El Diario de Hoy: Edificios históricos de San Salvador (2026)
- 14. El Diario de Hoy: Palacio Nacional, Iglesia El Rosario y el BCR