El Salvador

Tax residency in El Salvador is generally triggered by physical presence exceeding 183 days in a calendar year. Foreign income treatment: unknown. No statutory CFC rules apply, which can facilitate the use of foreign holding structures without automatic income attribution.

Bitcoin legal tender since 2021; USD de facto currency. Freedom Visa: hold $1,000 BTC/USDC for 1-year visa. No CGT on Bitcoin gains (legal tender transactions). Digital nomad visa (2024). FATF grey list. Surf/tech community growing. Corporate income <$150k: 25%.

The standard corporate income tax rate is 30%. Establishing a legal presence here involves a higher degree of administrative complexity, often requiring local legal assistance.

Banking access in El Salvador is attainable but may require more documentation and time than in simpler jurisdictions. Internet infrastructure is developing. Speed and reliability can vary by location and should be assessed for business-critical operations.

El Salvador is currently on the FATF grey list, indicating enhanced monitoring by the international AML/CFT body. This may affect banking relationships and counterparty due diligence requirements. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Based on our scoring model, El Salvador ranks highest for Digital Nomad and Freelancer. It offers a reasonable proposition for digital nomad (score: 56/100). It offers a reasonable proposition for freelancer (score: 52/100). It scores lower for founder / entrepreneur and high net worth individual, who may find other jurisdictions more suitable for their specific requirements.