Relocation intelligence

🇸🇻 Moving to El Salvador: tax, residency and cost of living

Territorial system: only Salvadoran-source income is taxed and foreign income is generally untaxed. Progressive income tax up to 30%, with the US dollar as currency. No wealth tax and no inheritance tax. Capital gains are a flat 10%, but crypto and Bitcoin are fully exempt from capital gains tax. Mandatory social contributions (ISSS 3% health, AFP 7.25% pension) are deductible.

Thinking of moving to El Salvador? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
30%
Corporate tax
30%
Capital gains
10%
Wealth tax
No
Inheritance tax
No
Cost of living index
44
Safety
7/10
Internet quality
6/10
Visa-free destinations
136
Foreigners can own property
Yes
Residency in
6 months
Citizenship in
5 years

Taxes

Employees fall under the monthly withholding table: exempt up to $472/mo, then 10%, 20% and 30%. ISSS (3%, max $30/mo) and AFP (7.25%) are deducted before tax. No wealth or inheritance tax; capital gains flat 10% but crypto exempt.

Residency and visas

Residency is accessible via the independent-worker/nomad visa ($1,500/mo foreign income) or retiree visa ($1,100/mo), both renewable yearly. Naturalisation after roughly 5 years; the Freedom Visa grants citizenship via a $1 million Bitcoin or USDT investment.

Property ownership

Foreigners may own urban residential real estate; only large rural landholdings face restrictions and reciprocity rules.

Cost of living and quality of life

Tropical climate, surf beaches and low cost of living, with a much-improved safety picture but ongoing concerns about the state of exception and the quality of public services.

Passport and mobility

The Salvadoran passport gives visa-free or visa-on-arrival access to 136 destinations (Henley 2026), including the Schengen area.

Why people move to El Salvador

  • Territorial system with the dollar

    Foreign income generally stays outside Salvadoran tax and the country uses the US dollar, removing exchange-rate risk for those living on dollar income.

  • 0% crypto tax and fast residency routes

    Bitcoin and crypto gains are exempt from capital gains tax, and independent-worker, digital-nomad and retiree visas are relatively easy to obtain.

Honest trade-offs

  • El Salvador verkeert al jaren onder een uitzonderingstoestand met massale arrestaties; de sterke daling van geweld gaat gepaard met ernstige zorgen over mensenrechten en rechtsbescherming.
  • De openbare gezondheidszorg is beperkt en van wisselende kwaliteit; goede private zorg is vooral beschikbaar in San Salvador en buiten de hoofdstad is het aanbod schaars.
  • El Salvador heeft nauwelijks belastingverdragen (in de praktijk alleen met Spanje), waardoor risico op dubbele belasting bestaat voor inwoners met buitenlands inkomen.
  • Bitcoin verloor in 2025 onder een IMF-akkoord zijn status als verplicht wettig betaalmiddel, wat beleidsonzekerheid geeft ondanks de blijvende belastingvrijstelling voor cryptowinst.

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Sources

Other destinations

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