Stateless

El Salvador

SV USD$ Spanish
Pros
Adoption of Bitcoin as legal tender to attract global capital and promote financial sovereignty.
Significant reduction in violent crime rates to ensure physical security for residents and business owners.
Elimination of income tax on foreign investments and technology-related capital gains to foster growth.
Cons
High concentration of executive power potentially undermining the long-term stability of the rule of law.
Elevated levels of public debt creating risks of future fiscal adjustments or economic instability.
Limited infrastructure and logistical development in rural areas hindering broad-scale industrial expansion.

Long story short: Here, you can set up your company online in a single day, no notary required, and Bitcoin is legal tender, exempt from capital gains tax.

The catch: the judiciary answers to the executive, banks stay skittish with crypto entrepreneurs, and real Bitcoin adoption on the ground remains anecdotal.

Beyond that: security in San Salvador's upscale neighborhoods has jumped since the crackdown on gangs, roads and the airport are solid, pupusas hit the spot, and El Zonte's surf beaches are worth the trip.

VERYLOW TAX 6.1/10 HOLDING 4.8/10 DIVIDENDPIPELINE 5.8/10 CRYPTOHAVEN 9.7/10 PRIVACYGRADE 7.3/10
─ On this page
01 Will El Salvador tax what you earn? 02 Will El Salvador tax what you own? 03 Is it easy to run a company in El Salvador? 04 Is El Salvador good for your holding company? 05 What does it cost to come and go from El Salvador? 06 Is your money watched in El Salvador? 07 Is El Salvador itself a liability? 08 Will you feel free in El Salvador? 09 Is El Salvador connected to the rest of the world?

Will your income be taxed?

Long story short: YES, A LOT.
On paper, El Salvador shears you at up to 30%. In practice, the territorial regime only bites income sourced locally: foreign salary, foreign dividends, foreign gains walk through untouched. The sticker is there to scare; the machinery doesn't reach that far.

Earn your living abroad and the local taxman mostly waves at you from a distance.

01.1 Income tax
Personal income tax
0 → 30%
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De quoi s’agit-il ?What residents pay on what they earn: salary, freelance income, sometimes dividends too. We show the system (flat or progressive) and the top rate.
Source et informations complémentairesprogressive · 4 brackets
Bracket (USD)Rate
0 – 6,600exempt
6,600 – 9,14310%
9,143 – 22,85720%
22,857 +30%
01.2 Tax residence test
A single active rule is enough to make you tax-resident.
183-day rule
does not exist here
Economic interest
Family centre
does not exist here
Habitual abode
does not exist here
Extended-stay test
Income tax simulatori

If you earn a year, you will pay .

Roughly effective, with a marginal rate of .

Will your wealth be taxed?

Long story short: YES, BUT LIGHTLY.
El Salvador takes a light trim on capital gains (10% at the top), with no annual wealth levy and no inheritance regime.

Your portfolio compounds with barely any friction; the state only shows its face when you sell. And even then, politely.

02.1 Investment income
Capital gains
10%
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De quoi s’agit-il ?The tax on your profit when you sell something that gained value: stocks, property, crypto, a business. Some countries skip it entirely.
Source et informations complémentairesflat
Dividend tax
10%
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De quoi s’agit-il ?What you pay when your company sends you dividends. It stacks on top of corporate tax, so the combined bill is what really counts.
Source et informations complémentairesflat
Interest income
0%
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De quoi s’agit-il ?The tax on income from savings, bonds and loans. Matters when choosing where to park your cash.
Source et informations complémentairesflat
02.2 Wealth & estate
Wealth tax
NONE
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De quoi s’agit-il ?A yearly tax on what you own above a threshold, whether you sell or not. Most countries scrapped it; a few still run one.
Source et informations complémentairesno annual wealth tax · no real-estate wealth tax · no net-worth assessment
Inheritance system
NONE
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De quoi s’agit-il ?What heirs pay on what they inherit, by category (spouse, children, others), with allowances and top rates. Plenty of countries charge nothing at all.
Source et informations complémentairesno estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply.
02.3 Crypto
Crypto · tax regime
ZERO TAX
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De quoi s’agit-il ?How crypto gains are taxed here: zero, flat, progressive or grey zone. Includes whether crypto-to-crypto swaps count as taxable events.
Source et informations complémentairesRate: 0% · Bitcoin is legal tender under the 2021 Bitcoin Law, which explicitly exempts bitcoin exchanges from capital gains tax (Art. 5). The 2023 Digital Assets Issuance Law (LEAD) further extends these benefits to other digital assets, providing broad exemptions from income tax, VAT, and municipal taxes on transfers, yields, and ordinary income derived from digital asset activities.
Crypto-to-crypto
NEUTRAL
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De quoi s’agit-il ?How crypto gains are taxed here: zero, flat, progressive or grey zone. Includes whether crypto-to-crypto swaps count as taxable events.
Source et informations complémentairesa swap is not a taxable realisation event
FATF travel rule
NOT SIGNED
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De quoi s’agit-il ?Does this country enforce the crypto Travel Rule? If yes, exchanges must identify senders and recipients, like banks do for wire transfers.
Source et informations complémentairesno information-sharing obligation on VASP transfers

Easy to run a company there?

Long story short: NO.
Corporate tax in El Salvador is 30%, no IP-box mercy, VAT at 13 on top.

Operationally, running a company here is fine; fiscally, the state helps itself to a fat slice of every unit of profit. You do the work, they skim the cream.

03.1 Rates
Corporate tax
25 → 30%
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De quoi s’agit-il ?What companies pay on their profits. The headline rate is a starting point: IP boxes and holding regimes often pull the real rate lower.
Source et informations complémentairesprogressive
Bracket (USD)Rate
0 – 150,00025%
150,000 +30%
VAT standard rate
13%
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De quoi s’agit-il ?The sales tax baked into almost everything you buy here. One standard rate, plus reduced rates on things like food or books.
Source et informations complémentairessingle rate · no reduced tiers
13%
Food & drink
13%
food
13%
non-alcoholic
13%
alcohol
Print media
13%
books
13%
ebooks
13%
newspapers
Culture
13%
cultural events
13%
cinema
13%
theatre
13%
museums
13%
sports
Transport
13%
rail
13%
air
Hospitality
13%
hotels
13%
restaurants
13%
takeaway
Health
13%
pharma
13%
medical dev.
Energy
13%
electricity
13%
natural gas
13%
district heat.
13%
domestic fuel
Utilities
13%
waste
Clothing
13%
kids clothing
Digital & telecom
13%
digital
13%
telecom
13%
broadcast
Construction
13%
construction
Agriculture
13%
farm inputs
13%
animal feed
Personal services
13%
funeral
13%
hairdressing
03.2 Regime & registry
IP Box · Patent Box
NONE
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De quoi s’agit-il ?A discounted tax rate on income from patents, software and designs, often 5 to 10%. A magnet for tech and licensing businesses.
Source et informations complémentairesno IP regime · IP income taxed under standard corporate rules
Misuse of corporate assets
NO CRIMINAL
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De quoi s’agit-il ?If you spend company money on yourself, is it a crime (prison possible) or a civil matter? Some countries prosecute even sole shareholders.
Source et informations complémentairesno criminal liability · In El Salvador, the Penal Code does not contain a specific 'Abuse of Corporate Assets' (ABS) offense. The closest criminal figure is 'Fraudulent Administration' (Art. 218, Penal Code), which requires the perpetrator to harm the interests of the owner or a third party. In a scenario involving a sole shareholder and a solvent company, the identity of interest between the manager and the owner, combined with the lack of harm to third parties (creditors), generally precludes criminal prosecution. Such actions are instead treated as tax violations (unauthorized personal expenses) or civil matters involving the 'piercing of the corporate veil' (Art. 22, Commercial Code).
Shareholders privacy
PUBLIC PAYWALL
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De quoi s’agit-il ?How visible a company's shareholders and directors are: free public registry, paywalled, restricted or fully private. More privacy, but sometimes warier banks.
Source et informations complémentairesRegistro de Comercio (Centro Nacional de Registros)
Directors privacy
PUBLIC PAYWALL
read moreClose
De quoi s’agit-il ?How visible a company's shareholders and directors are: free public registry, paywalled, restricted or fully private. More privacy, but sometimes warier banks.
Source et informations complémentairesRegistro de Comercio (Centro Nacional de Registros)
03.3 Incorporation cost
In this country, the most standard company form is called Sociedad Anónima de Capital Variable (S.A. de C.V.) (Variable Capital Corporation). The costs below are for incorporating a company in its simplest form, for reference only.
Government Registration and Filing Fees (CNR, NIT, and VAT)
USD 30
Initial Commercial License (Matrícula de Comercio)
USD 100
Professional Legal and Notary Fees (Incorporation Package)
USD 1,500
Total
USD 1,630

A good fit for a holding?

Long story short: YES, BUT THIN.
El Salvador runs a full participation exemption (100% on qualifying dividends and gains), but the treaty network is skinny (1 agreements): in plenty of geographies your dividends get clipped at the source before they ever reach the holding.

Fine for a regional play, undersized for a global one.

04.1 Substance & exemptions
Territorial · individuals
TERRITORIAL
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De quoi s’agit-il ?Does this country tax only local income (territorial) or everything you earn worldwide? Territorial means your foreign income stays untaxed here. Huge.
Source et informations complémentairesterritorial — foreign-source income generally untaxed
Territorial · corporates
TERRITORIAL
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Source et informations complémentairesterritorial principle — foreign-source profits generally exempt
Participation exemption
100%
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De quoi s’agit-il ?Can a holding company receive dividends from its subsidiaries tax-free? The cornerstone of any serious holding structure.
Source et informations complémentairesno minimum threshold · no holding period
CFC rules
NONE
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De quoi s’agit-il ?Anti-offshore rules: they tax you at home on your foreign company's profits, even if nothing was distributed. Where they exist, offshore setups get tricky.
Source et informations complémentairesno controlled foreign corporation regime · foreign-source corporate income out of scope
04.2 Withholding tax · non-resident
WHT · dividends
5%
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De quoi s’agit-il ?The cut this country takes when it sends dividends, interest or royalties abroad. Tax treaties can shrink it; blacklists can inflate it.
Source et informations complémentairesnon-resident outbound
WHT · interest
20%
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Source et informations complémentairesnon-resident outbound
WHT · royalties
20%
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Source et informations complémentairesnon-resident outbound
Tax-haven WHT
25%
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Source et informations complémentairespenalty rate · blacklisted destinations
04.3 Treaty network
Treaties signed
1
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De quoi s’agit-il ?Deals with other countries to avoid double taxation and cut withholding taxes. The bigger the network, the easier your money moves across borders.
Source et informations complémentairesactive
Treaties pending
—
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Source et informations complémentairesin negotiation
Tax treaty network
origin · SV 0% > 0% no treaty
⌖
Inspect a country
Hover any country on the map to read its withholding-tax treaty with SV.
Country Status Dividends Interest Royalties
∅ // no treaties match
treaties /

Easy to come and go?

Long story short: LITTLE.
Coming and going from El Salvador costs you nothing worth mentioning. Territorial regime (foreign income stays foreign), no exit tax at the door.

You show up with your stuff, you leave with your stuff, plus whatever you earned abroad in between. Borders the way they should all work.

05.1 Exit & dual nationality
Exit tax
NONE
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De quoi s’agit-il ?What the country charges you for leaving: tax on your unrealized gains, as if you'd sold everything at the border. Here you'll see if it exists and when it triggers.
Source et informations complémentairesno triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
ALLOWED
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Source et informations complémentairesnaturalised citizens may keep their existing nationality
05.2 Citizenship paths
Residence
5 years
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Source et informations complémentairesavailable path to naturalisation
Marriage
2 years
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Source et informations complémentairesavailable path to naturalisation
Birth
jus soli
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Source et informations complémentairesavailable path to naturalisation
Descent
1 gen
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Source et informations complémentairesavailable path to naturalisation
Investment
—
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Source et informations complémentairesnot available

Is your money watched?

Long story short: NO.
Foreign tax offices see next to nothing of what you do in El Salvador: it has signed few exchange frameworks.

But the corporate registries are public: your shareholdings and directorships are one search away for anyone curious. Invisible from abroad, on display at home.

Multilateral reporting frameworks 2/9 active · 1 pending
CRS
—
CARF
—
FATCA
—
MLI
—
BEPS
—
MAAC
2019
GLOBAL FORUM
—
EOIR
—
CRYPTO TRAVEL RULE
—

Is it blacklisted?

Long story short: NO.
El Salvador sits on no major blacklist, though it's outside the FATF club.

Some counterparties will run a bit of extra due diligence out of habit, but there's no formal stigma: you won't get hassled for dealing with it.

Blacklist exposure Clear everywhere
EMBARGO
un / us / eu sanctions
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list

Do you feel free there?

Long story short: NO.
Press freedom in El Salvador is locked down (RSF rank #135). Independent media and civic space operate under pressure (when they operate at all), and that kind of grip usually spills over into economic life too.

Small mercy: crypto isn't formally banned.

08.1 Press freedom
Press freedom · RSF index
135/180
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De quoi s’agit-il ?The RSF world ranking of press freedom. A good proxy for censorship and civil liberties. The lower the rank, the freer the press.
Source et informations complémentairesscore 41 · ↓ 2 ranks year-on-year
Central bank digital currencyi
NONE
no announced CBDC program · no pilot · no retail or wholesale prototype on record

Connected to the world?

Long story short: POORLY CONNECTED.
The two rails that matter are both dead in El Salvador. Stripe won't onboard you, so card payments mean a foreign structure or a local processor with its own rules. Amazon doesn't deliver either.

Some secondary services run (4/11), but for an online business this is swimming against the current.

Accept payments 2/6 available
Stripe
card payments
PayPal
wallet payments
Adyen
enterprise psp
Mollie
eu payments
GoCardless
direct debit
Paddle
merchant of record
Bank and move money 1/3 available
Wise
multi-currency
Revolut
personal banking
Revolut Business
business banking
Buy and sell on Amazon 1/2 available
Amazon
consumer delivery
Amazon Seller
marketplace selling
SEE ALSO

Other jurisdictions worth comparing

Picked by similarity of strategic profile to El Salvador. No editorial ranking — neighbours in the same scoring space.

PROFILE-ADJACENT Same shape, comparable overall friction.
St. Barthélemy BL → Wallis & Futuna WF → Georgia GE →
NOTABLY MORE FAVORABLE Same family of strategies, higher total score.
Bermuda BM → Saudi Arabia SA → Hong Kong SAR China HK →
NOTABLY LESS FAVORABLE Same family of strategies, lower total score.
St. Barthélemy BL → Wallis & Futuna WF → Costa Rica CR →