Does El Salvador tax foreign income?

Not taxed (exempt since 2024). In one line: 0% on foreign income · up to 30% on local income.

Can I run an online business from El Salvador?

Effective tax about 0% with the cheapest legal set-up, which costs about USD 400 a year: territorial; foreign income untaxed.

What is the catch in El Salvador?

Political risk; the IMF programme changed the Bitcoin law.

What residence or citizenship programmes does El Salvador have?

Freedom Visa: about USD 1 million all-in for one person, ~6 months

Moving to El Salvador: tax, residence and real costs (2026)

El Salvador: 0% on foreign income · up to 30% on local income. The cheapest route to residence is temporary residence with proof of income; Freedom Visa needs USD 1 M in BTC/USDT: about USD 2,000 in fees doing it yourself, with no investment, with about USD 1,000 a month of income shown, in about 4 months. Living costs about USD 1,300 a month for one person in San Salvador, USD 770 in Santa Ana, and around USD 730 on a bare-minimum budget.

Key facts

Tax in one line	0% on foreign income · up to 30% on local income
Foreign income	not taxed (exempt since 2024)
Gains · dividends	0 on foreign · 5% local
Wealth · inheritance tax	none · none
Cheapest residence	temporary residence with proof of income; Freedom Visa needs USD 1 M in BTC/USDT
Money needed	About USD 2,000 in fees doing it yourself, with no investment
Time	about 4 months
Doable yourself?	Mostly; a local fixer for one step helps
Days you must spend there	183
Citizenship	Freedom Visa or after 5 years
Online business	0% effective, about USD 400 a year to run: territorial; foreign income untaxed
Living (one person a month)	San Salvador ~USD 1,300; bare minimum ~USD 730; family of four ~USD 2,550
Good for	crypto-friendly; Freedom Visa
Common set-up	residence + foreign income

Pros and cons

Pros	Cons
Foreign income tax-free Murder rate now among the lowest in the Americas US dollar	Rule of law concerns (emergency regime) Small economy

Programmes

Programme	All-in, one person	Months	Notes
Freedom Visa	USD 1 million	6	USD 1 M in Bitcoin or USDT; 1,000 places a year.

Questions

How much does residence in El Salvador cost?: Temporary residence with proof of income; Freedom Visa needs USD 1 M in BTC/USDT: about USD 2,000 in fees doing it yourself, with no investment, about 4 months.
Does El Salvador tax foreign income?: Not taxed (exempt since 2024). In one line: 0% on foreign income · up to 30% on local income.
What does it cost to live in El Salvador?: Living costs about USD 1,300 a month for one person in San Salvador, USD 770 in Santa Ana, and around USD 730 on a bare-minimum budget (based on livingcost.org, 2026).
Can I run an online business from El Salvador?: Effective tax about 0% with the cheapest legal set-up, which costs about USD 400 a year: territorial; foreign income untaxed.
What is the catch in El Salvador?: Political risk; the IMF programme changed the Bitcoin law.
What residence or citizenship programmes does El Salvador have?: Freedom Visa: about USD 1 million all-in for one person, ~6 months

Compare

Paraguay: 0% on foreign income · 10% on local income · 8% on local dividends
Uruguay: 0% on foreign dividends and interest for 11 years (tax holiday) · up to 36% on local work income
Panama: 0% on foreign income · up to 25% on Panamanian income · 10% on local dividends
Belize: 0% on foreign income · up to 25% on local income
Costa Rica: 0% on foreign income · up to 25% on local income · 15% on local dividends
Honduras (Próspera ZEDE): ~5% on income in the zone · 0% on foreign income

Compare all 53 places with your own income and budget →

Sources

https://www.mh.gob.sv
Living costs: based on livingcost.org (livingcost.org, June 2026), rounded