El Salvador runs on the US dollar, and since a March 2024 reform it charges 0 tax on foreign-source income. For anyone weighing El Salvador residency, El Salvador tax, or a Pacific surf property at half the price of Costa Rica, the country stacked three structural moves on top of a dollarised economy in the space of two years. This is the third country guide in the Reset Intelligence deployment series.

Permanent territorial tax on foreign income

On 12 March 2024 the Legislative Assembly approved a reform to the Income Tax Law that exempts foreign-source income for residents and non-residents alike, effective 22 March 2024. Dividends from foreign companies, interest from foreign deposits, capital gains on foreign securities, foreign rental income, and royalties all pay 0 Salvadoran tax. The reform reverted the country to a pure source-based system and has not been amended since. Bitcoin transactions are tax-free, there is no wealth tax, and no inheritance tax for direct heirs.

El Salvador residency and the Freedom Passport

Three residency routes exist. The Rentista visa needs $1,460 per month of verified passive foreign income on a one-year renewable permit with an 8-month annual presence rule. The investment visa needs $10,000 of equity in a Salvadoran company generating $4,000 in annual sales, or $1 million registered with the National Investment Office. All three convert to permanent residence after 3 years and citizenship after 5. The Freedom Passport is the world's only citizenship-by-investment program payable in Bitcoin or USDT: a $1 million contribution delivers citizenship in roughly 2 months, capped at 1,000 applicants per year, with a passport opening 130-plus countries visa-free or visa-on-arrival.

Surf City property at half Costa Rica prices

El Salvador has 320 kilometres of Pacific coast, the same swell that washes Nosara and Tamarindo, at roughly half the price. Pre-sale lots in La Libertad and the Surf City zone start at $70,000. Three-bedroom gated beach houses run $300,000 to $550,000, and premium oceanfront villas $750,000 to $1.5 million. In El Zonte, the original Bitcoin Beach, average square-metre pricing moved from $34 in 2015 to $1,058 for luxury developments in 2025. Gross rental yields outside the city centre exceed 8.7 percent, and El Salvador levies no recurring annual property tax on most residential property.

Why the timing works

The macro backs the policy. Real GDP grew about 4 percent in 2025, private investment rose 26 percent year on year, and tourism now exceeds 8 percent of GDP. Since the March 2022 state of exception the homicide rate fell from one of the highest globally to one of the lowest in Latin America. El Salvador is not on the FATF grey list as of February 2026. For the dollar holder the route in is a single outbound wire of $20 to $50, with no conversion at the destination.

The complete IR-009 report maps every residency pathway, the full price table by coastal zone, banking and deposit-insurance detail, and the tax position for USD, EUR, GBP, AUD, and CAD holders. Read the full El Salvador country analysis.