Americas

El Salvador

Dollarized El Salvador offers a simple base in the Americas, with foreign-sourced income now exempted and a crypto-focused investor pathway.

El Salvador flag

Country details

Capital
San Salvador
Language
Spanish
Currency
US Dollar (USD)
Population
6.3M
Timezone
UTC-6
Immigration Authority
Official Website
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Migration pathways

Tax situation

Income Tax
0-30%
Foreign Income
Exempt
Capital Gains
Taxed (0-30%)
Dividends
Taxed (0-30%)
Wealth Tax
None
Inheritance Tax
None

Country details

El Salvador is a small, dollarized Central American jurisdiction that has positioned itself as unusually crypto-friendly, including launching a high-threshold investor pathway linked to Bitcoin and USDT.

For regular residents, personal income tax is progressive (up to 30%) and standard taxes can still apply to Salvadoran-sourced income. El Salvador is also notable for not levying net worth or inheritance type taxes on individuals, and it has legislated an exemption for income or funds coming from abroad, a policy change aimed at attracting foreign capital.

Immigration is administered by the Dirección General de Migración y Extranjería (DGME). Standard routes include work, family, and investor pathways, and El Salvador has additionally publicized a crypto investor option that offers an expedited residence and citizenship track.

Practically, El Salvador can be attractive for those who value USD pricing, warm climate, and a growing international profile. The caveat is that policy and program details have moved quickly in recent years, so structuring, tax residence, and compliance should be confirmed before committing.

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Default tax (no inheritance/net worth type taxes)

PwC Tax Summaries - El Salvador (Individual - Other taxes)·Last checked: 13/01/26

Foreign income treatment change

Reuters - El Salvador removes income taxes for money from abroad·Last checked: 13/01/26

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