El Salvador will reduce the annual in-country stay requirement for temporary residents to 90 days, down from nine months, under Decree No. 531, which takes effect on 2026-03-31. According to ChainCatcher, the change targets entrepreneurs, investors, and remote workers who frequently travel across borders.
The country applies a territorial tax system, meaning only income generated within El Salvador is subject to taxation. A 2024 income tax reform clarified that foreign-source income is exempt from income tax for both residents and non-residents.
The report also said El Salvador does not tax capital gains related to Bitcoin and does not levy wealth, inheritance, or gift taxes.
It added that the practical impact for individuals may depend on whether their home countries recognize these arrangements, as many jurisdictions continue to enforce tax obligations based on tax residency and may scrutinize residency claims.
El Salvador Lowers Temporary Residency Stay Requirement to 90 Days Under Decree 531
2026-06-13 12:13:52
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