El Salvador
Central America · SV · 1 treaties
What is the tax system in El Salvador?
El Salvador operates a territorial tax system. The top personal income tax rate is 30%, and the corporate tax rate is also 30%.
Tax profile
| Corporate income tax | 30% |
| Withholding — dividends | 12% |
| Withholding — interest | 10% |
| Withholding — royalties | 10% |
| VAT / GST (standard) | 13% |
| Personal income (top rate) | 30% |
| Capital gains | 10% |
| Tax system | Territorial |
| Residency threshold | 200 days |
| Exit / departure tax | No |
| CFC rules | No |
| Transfer pricing | Basic |
| Digital nomad visa | No |
| Digital services tax | none |
| Global minimum tax (Pillar 2) | None |
Common questions
- What are the main tax rates in El Salvador?
- The top personal income tax rate in El Salvador is 30%, and the corporate tax rate is 30%. Capital gains are taxed at 10%, and dividend withholding is 12%. The standard VAT is 13%.
- How is cryptocurrency taxed in El Salvador?
- Cryptocurrency is taxed under a special classification. Long-term gains are exempt, and the headline rate is 0%.
- What are the residency requirements in El Salvador?
- Tax residency in El Salvador can be established in 200 days. The country offers a nomad visa.
Tax residency
Easy to leaveWhat makes you a tax resident — and how hard it is to stop being one.
- reside temporarily or permanently in El Salvador for more than 200 consecutive days during a calendar year
- have in El Salvador the main source of income / main seat of business or economic activity
Tax residence is tied to physical presence and main source of income; if you stop spending 200+ consecutive days in El Salvador and your main income is no longer sourced there, you generally cease to be a tax resident under the official criteria.
Source: PwC summarizing El Salvador Tax Code (Art. 53)
Tax treaty network (12)
In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.
| Partner | Div | Int | Roy |
|---|---|---|---|
| Spain | 5% | 10% | 5% |
| Guatemala | 10% | 10% | 10% |
| Honduras | 10% | 10% | 10% |
| Mexico | 5% | 15% | 5% |
| Panama | 10% | 10% | 10% |
| United States of America | 5% | 15% | 5% |
| Germany | 5% | 10% | 5% |
| France | 5% | 10% | 5% |
| South Korea | 5% | 10% | 5% |
| United Kingdom | 5% | 10% | 5% |
| Czechia | 5% | 10% | 5% |
| Japan | 5% | 10% | 5% |