Amendment to El Salvador's Forestry Law Regarding Land Use Change

Forestry Law reform: from a general prohibition to conditional authorization

On October 23, 2026, the amendments to the Forestry Law were published in the Official Gazette. The purpose of these amendments is to harmonize the powers granted to the Directorate of Territorial Planning under its own enabling law, to authorize changes in land use during construction permit proceedings, and thus avoid contradictions between said law and the Forestry Law regarding the restrictions established in relation to soil protection based on its use capacity.

What exactly changes?

Article 12 of the Forestry Law prohibits changes in the use of Class VI, VII, and VIII soils covered with trees, establishing that they may be used sustainably provided that the same use is maintained.

With the amendment, through which a second paragraph is added to Article 12 of the Forestry Law, it is clarified that changes in land use may be authorized by following the corresponding procedure before the competent authority, if it is demonstrated that the surrounding conditions have changed, or if it is demonstrated that the technical limitations established for Class VI, VII, and VIII soils do not apply to the property where the project is intended to be carried out, or if the project is one of public interest.

Authorization is not automatic. Furthermore, in all cases, soil conservation measures and compensation provided for in Article 38-A of the Law Creating the Directorate of Territorial Planning and Construction must be considered. The exception does not apply to mangrove forests, RAMSAR sites, protected natural areas, or aquifer protection or water recharge zones, even if there is no formal designation, unless the governing authority issues a technical opinion to the contrary.

Why is this relevant for future developments?

The amendment expands the alternatives for the location and design of new developments when technical studies demonstrate that the limitations associated with the soil classification do not apply to the property or that the surrounding conditions have verifiably changed.

To this end, the developer must demonstrate the legal grounds invoked and incorporate the corresponding soil conservation and environmental compensation measures from the earliest stages. The foregoing does not replace other assessments, feasibility studies, or requirements established under applicable environmental, territorial, or water regulations.

Aspects to consider when planning projects involving changes in land use:

• Early due diligence: Verify the soil classification, tree coverage, environmental restrictions, and location in relation to ecosystems or areas expressly excluded under the amendment.
• Technical support: Identify the studies required to demonstrate changes in the surrounding conditions or the absence, on the specific property, of the technical limitations attributed by the Forestry Law to Class VI, VII, and VIII soils.
• Design and mitigation: Incorporate soil conservation measures from the conceptual stage and anticipate the applicable compensation obligations.
• Permitting strategy: Request authorization for the change in land use as part of the construction permit process, in coordination with the applicable environmental and sector-specific authorizations.

Our team in El Salvador advises domestic and foreign investors and developers on property assessments, the early identification of legal and territorial restrictions, and the definition of a comprehensive permitting strategy. Contact us to analyze the implications of this amendment for a specific investment or project.

This content is provided for informational purposes only; it does not constitute legal advice or create an attorney-client relationship.

By: Adán Araujo, Senior Counsel at ARIAS El Salvador