North & Central America
El Salvador tax rates 2026
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
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.