El Salvador — Taxes

A friendly tax picture — but that is not the point El Salvador’s tax profile is genuinely light: foreign income and remittances have been untaxed since a 2024 reform, Bitcoin is legal tender with no capital gains tax, and there is no wealth or inheritance tax. Local income is taxed up to 30% and VAT is 13%. But for a citizenship buyer who will not live there, the passport creates no tax residency anyway.

Why the tax angle is secondary Nobody pays 1,000,000 USD for a passport to save tax — cheaper residencies deliver territorial treatment for far less. El Salvador’s citizenship is bought for the document and the Bitcoin-state brand, not the tax code.

The comparison that matters Weigh the price honestly. A Dominica or Grenada passport reaches a comparable or wider set of countries for a fraction of El Salvador’s cost. If mobility per dollar is your metric, the Caribbean wins; El Salvador makes sense only if the Bitcoin-forward, ideological angle is worth a seven-figure premium to you.

Not tax residency, and duties elsewhere remain Holding the passport does not make you Salvadoran tax-resident, and it does not remove obligations to a country that taxes on citizenship, such as the United States. Compare it against the Caribbean programmes on our comparator, and see how each figure is checked in our methodology.