North & Central America
El Salvador: tax at a glance
A dollarized economy with a territorial corporate tax and income tax up to 30%. Bitcoin lost its legal-tender status in 2025, but the state still holds a BTC reserve.
Territorial
Last verified
The taxes
- Personal income (top)
- 30%Progressive 0–30%. This follows the territorial principle, meaning tax is generally levied only on El Salvador-source income.
- Corporate income
- 30%
- Capital gains
- 10% flat (taxed as ordinary income if the asset is sold within 12 months of acquisition)
- VAT / IVA
- 13%
- Dividends (WHT)
- 5%
- Interest (WHT)
- 20% (10% for registered financial institutions)
- Royalties (WHT)
- 20% (30% if paid to a tax-haven jurisdiction)
- Social security (employee)
- ~10% (ISSS 3% + AFP pension 7.25%)
- Social security (employer)
- ~16% (ISSS 7.5% + AFP pension 8.75%)
- Wealth tax
- None
- Inheritance / estate
- None
- Property tax
- No recurrent property tax, but a 3% transfer tax applies on property above ~USD 28,571
How the system works
- Tax system
- Territorial
- Foreign income
- Largely outside scope (territorial)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Sources (2)
Secondary references