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El Salvador
Latin America
Lucky Nomads World Index
65.98 / 100
Global rank
#103
Corporate tax
30%
Personal tax
30%
Lucky Nomads Proprietary Indices
22 scoring dimensions scored independently using a deterministic methodology built on primary sources and structured analytical inference.
- SafetyShield Index5.7 / 10
- Affordability Index7.2 / 10
- Entry Ease Index6.4 / 10
- Tax Freedom Index8.4 / 10
- WiFi Index7.0 / 10
- Admin Ease Index5.8 / 10
- Healthcare Index7.7 / 10
- City Comfort Index7.0 / 10
- WeatherComfort Index6.3 / 10
- Banking Index5.2 / 10
- GeoStability Index6.9 / 10
- Justice & Order Index4.0 / 10
- Quality of Life Index7.4 / 10
- Open Society Index4.7 / 10
- Flight Index3.3 / 10
- Environmental Quality Index7.0 / 10
- English Index4.3 / 10
- Wealth Protection Index7.5 / 10
- AI Access Index5.7 / 10
- Economic Openness Index7.1 / 10
- Market Depth Index5.4 / 10
- ClimateShield Index7.4 / 10
Country snapshot
- Capital
- San Salvador
- Population (approx.)
- 6,391,000
- Area (km²)
- 21,041 km²
- Currency code (ISO 4217)
- USD
- Currency name
- United States dollar
- Main airport IATA code
- SAL
- Airport name
- Monseñor Óscar Arnulfo Romero International Airport
General facts
- Minimum monthly cost
- From $1,336/month
- Main languages
- Spanish
- Jurisdiction type
- Country
- Region
- Latin America
- Web TLD
- .sv
- Phone calling code
- +503
Web TLD and phone codes are general references and can differ for territories or special numbering plans.
Tax system
- Marginal CIT (corporate income tax)
- 30%Very highTerritorial
- Marginal PIT (personal income tax)
- 30%HighTerritorial
Corporate taxation basis: Territorial. The country primarily taxes profits from domestic-source operations, with defined statutory exceptions. Foreign business profits are generally outside the base, subject to anti-abuse rules.
Strict territoriality. Only profits from Salvadoran-source activities are taxable. Foreign-source income, including dividends, royalties, interest and capital gains, is outside the scope of CIT. No foreign tax credit available. WHT of 20% applies to most payments to non-residents and 25% to payments to listed tax haven jurisdictions per DGII guideline 700-DGII-GTR-2024-003.
Flat 30% headline rate on Salvadoran-source corporate profits above USD 150,000 of taxable income, with a reduced 25% rate below that threshold. Companies pay a 1.75% monthly advance tax on gross revenues, creditable against year-end CIT. Capital gains are taxed at 10%.
Personal income tax basis. Territorial. The country taxes income arising in or derived from its territory. Foreign-source income is generally exempt, subject to source-based rules that may vary by income type.
Pure territorial system: residents and non-residents are taxed only on Salvadoran-source income. Foreign-source dividends, capital gains, rental income and pensions are not subject to PIT. The Bitcoin Law of 2021 explicitly exempts Bitcoin transactions from capital gains and income tax, with this exemption preserved through the IMF-driven reform of January 2025.
Progressive 0-30% on Salvadoran-source income. The 30% top rate applies to annual taxable income above USD 22,000, with intermediate brackets below. Capital gains are taxed at a flat 10%. No wealth tax, inheritance tax or gift tax. Foreign-source income is outside the scope of PIT.
Tax percentages here are editorial reference figures for comparison, not individualized tax advice.
Special tax regimes
For companies
Industrial and Commercial Free Zone Law (LZFIC)
AvailableSalvadoran free zone regime granting 100 percent income tax exemption, VAT exemption, municipal tax exemption, real estate transfer tax exemption…
Law of International Services (LSI)
AvailableSalvadoran international services regime extending free zone benefits to companies operating in designated International Services Parks and Centres.
Renewable Energy Incentives Law for Electricity Generation
AvailableTime-limited tax regime for new investments in renewable electricity generation projects (hydro, geothermal, wind, solar, biomass, marine, biogas).
Tourism Law (Ley de Turismo) Article 36 Incentives
AvailableTourism investment incentive regime under Article 36 of the Ley de Turismo of December 2005, extended by Decreto Legislativo No.
Law for the Promotion of Technology Innovation and Manufacturing
AvailableTechnology innovation and manufacturing tax regime in force since 5 June 2023 (Decreto Legislativo del 18 de abril de 2023, sancionado el 4 de mayo…
Bitcoin Service Provider (BSP) and Digital Asset Service Provider (DASP) Tax Regime
AvailableTax exemption framework for licensed Bitcoin Service Providers (BSP) and Digital Asset Service Providers (DASP) regulated by the Comisión Nacional…
For individuals
Bitcoin Capital Gains and Income Tax Exemption (Bitcoin Law)
AvailableEl Salvador exempts Bitcoin transactions from capital gains tax and income tax under the Bitcoin Law of 2021.
You either qualify for El Salvador's special tax regimes, or you don't. GeoCompass determines your eligibility, highlights the applicable conditions, and helps estimate your potential tax exposure.
Check my eligibilityVisa and mobility
Your access
Visa need and length of stay for El Salvador. Saved on your device.
Overview
- Citizenship by investment
Available
El Salvador Freedom Passport Program
- Residence by investment
Not currently available
- Remote work visa (digital nomad visa)
Available
Programmes
El Salvador lists several residency and mobility routes across business founder routes, work (employer sponsored), retirement routes, and remote work visas. Lucky Nomads tracks these programmes as editorial reference points. Thresholds, documents, and personal eligibility are evaluated in GeoCompass against your exact profile.
6 programmes listed · 6 are marked available in our editorial review
Business founder routes
2 programmesFounder, entrepreneur, or company-linked pathways for people building a business locally.
- Available
Residencia Temporal para Inversionista
- Available
Residencia Temporal para Personas de Negocios
Work (employer sponsored)
1 programmeEmployer-linked permits and skilled employment passes for hired professionals.
- Available
Residencia Temporal con Autorización de Trabajar
Retirement routes
2 programmesRetirement-age or pension-linked residence options.
- Available
Residencia Temporal para Pensionado
- Available
Residencia Temporal para Rentista
Remote work visas
1 programmeRemote work or digital nomad style permits.
- Available
Migrante Trabajador Digital (Digital Nomad Visa)
Not all residency routes are accessible. Some require minimum income, investment thresholds, local substance, or strict eligibility conditions. GeoCompass evaluates which options you can actually secure in El Salvador.
Evaluate my residency optionsVisa and programme labels reflect editorial research, not individualized legal advice. Thresholds, documents, and personal eligibility are evaluated in GeoCompass. Always confirm rules with official government sources before you plan a move.
Dimensions breakdown
Strongest dimensions
- Tax Freedom Index8.4 / 10Very favorable tax environment
- Healthcare Index7.7 / 10Solid healthcare access and quality
- Wealth Protection Index7.5 / 10Strong wealth protection index
Weakest dimensions
- Flight Index3.3 / 10
- Justice & Order Index4.0 / 10
Published ranks by index
One row per leaderboard we publish (the composite index plus each proprietary dimension). A rank appears only when this country is currently in the published top 10 for that list. Open a row to see the full ranking. Hover an index name for the same short definition as elsewhere on the site.
This jurisdiction is not in the published top 10 on any of these lists right now.
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Founder, Lucky Nomads · Wealth manager
Researched from official sources, leading global indices and Lucky Nomads' own scoring.
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