Taxes & Law

• Territorial principle: generally only Salvadoran-source income — foreign income often outside local ISR (details and exceptions case by case)
• VAT (IVA): statutory rate 13% (Art. 54 VAT Law) — verified against the statute text in this run
• Personal ISR: progressive Art. 37 table (after D.L. 293/2025): up to USD 6,600/year often exempt, then 10% / 20% / 30% with fixed amounts
• Capital gains: secondary sources often cite 10% — verify with Hacienda case by case
• Authority: Ministry of Finance / DGII

Immigration status is not automatically tax status. Local work or a company usually means registration and ongoing filings.

For resident natural persons, Art. 37 of the Income Tax Law (table after D.L. 293 of 30 Apr 2025, Official Gazette No. 79) includes: band I up to USD 6,600 exempt; band II USD 6,600.01–9,142.86 at 10% on the excess over 6,600 plus fixed USD 212.12; band III to 22,857.14 at 20% + USD 720; above that 30% + USD 3,462.86. Non-residents often 30% on net taxable income (or withholding regimes). Calculate with an accountant and the current table.

VAT rate 13% per Art. 54 of the Transfer of Movable Goods and Services Tax Law (official text e.g. Transparencia Fiscal). Exceptions and special regimes exist — Hacienda/DGII. Bitcoin: Legislative Decree No. 199 (Official Gazette 30 Jan 2025; effective 30 Apr 2025) makes accepting Bitcoin as payment voluntary; state obligations and tax payments run in the agreed currency (practically USD). Prior mandatory acceptance and parts of state Bitcoin infrastructure duties fall away per reform reports.

Programmes and special laws exist for investment, technology and certain zones — eligibility, duration and reliefs change. Soft: concrete rates and entitlements are not listed here as fixed claims. Check the Ministry of Economy, Hacienda and current decrees; local advice recommended.

NIT registration and ongoing DGII duties depend on the form. Set up with local professionals.

• Major banks and cooperatives; strict KYC
• USD accounts; transfers with fees
• Cards and digital wallets common in cities; Bitcoin optional
• Without a residence carnet, opening an account is often harder

Whether and how double taxation is avoided or eased depends on the tax law and any treaties between your home or residence state and El Salvador. There is no single rule for all nationalities. Check your own tax authority and any treaties; professional advice is recommended.