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El Salvador

SV • SPANISH • USD ($)

El Salvador has emerged as a bold frontier for economic liberty, famously adopting Bitcoin as legal tender. Its territorial tax system and aggressive pro-tech incentives offer a sanctuary for capital. While the centralized political landscape ensures unprecedented security and stability, it demands a tolerance for consolidated power. Corruption remains a challenge, yet the radical reduction in crime has transformed the quality of life. For the sovereign individual, it represents a high-reward laboratory for innovation and personal freedom in the heart of the Americas.

Upsides
  • Adoption of Bitcoin as legal tender and exemption from capital gains tax on crypto assets
  • Significant improvement in national security and drastic reduction in gang-related crime rates
  • Zero percent income tax on foreign-sourced capital and international investments
Downsides
  • Concentration of executive power and potential risks to long-term judicial independence
  • High levels of public debt and risks for future fiscal sustainability and economic stability
  • Limited transparency in public spending and concerns regarding the rule of law

Taxation

Corporate Tax 25–30%
Income Tax 0–30%
VAT 13%
Tax Treaties 1
IP Box ? Intellectual Property Box. A tax incentive offering reduced rates on income derived from patents, copyrights, and other intellectual property. No
Exit Tax ? A tax on unrealized capital gains triggered when a taxpayer moves their tax residence to another country. No

Compliance

BEPS ? Base Erosion and Profit Shifting. An OECD framework to combat tax avoidance strategies used by multinationals to shift profits to low-tax jurisdictions. Non-member
FATF ? Financial Action Task Force. An intergovernmental body that sets standards to prevent money laundering and terrorist financing worldwide. Non-member
FATCA ? Foreign Account Tax Compliance Act. A US law requiring foreign banks to report accounts held by US citizens to the IRS. Non-signatory
CRS ? Common Reporting Standard. An OECD standard for automatic exchange of financial account information between tax authorities globally. Non-signatory

Blacklists

FATF Blacklist ? Countries identified by FATF as having serious deficiencies in anti-money laundering and counter-terrorist financing measures. Clear
EU Blacklist ? The EU list of non-cooperative tax jurisdictions. Countries that fail to meet transparency and fair taxation standards. Clear

Payment Platforms

Stripe Unavailable
PayPal Unavailable

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