El Salvador Loosens Residency Rules, Keeps 0% Tax on Foreign and Bitcoin Income

El Salvador is tightening its pitch to affluent international talent and capital by streamlining immigration and doubling down on its tax appeal. Under Decree No. 531, set to take effect on March 31, 2026, temporary residents will only need to spend 90 days per year in the country to maintain status, down from the previous requirement of nine months annually. The 90 days can be met consecutively or in aggregate, a change aimed at entrepreneurs, investors and remote workers who frequently travel across borders. On taxation, El Salvador continues to run a territorial system: only income generated inside the country is taxable. A major 2024 income tax reform further spelled out that both residents and nonresidents are exempt from tax on foreign-source income. For freelancers and remote professionals—including content creators, developers and entrepreneurs earning abroad—this translates into a 0% Salvadoran income tax rate on overseas earnings, with no cap. The country’s framework also excludes Bitcoin-related capital gains from taxation and does not levy wealth, inheritance or gift taxes. In practice, the key constraint for many applicants is not El Salvador’s rules but whether their home jurisdiction accepts the arrangement, as tax authorities in many countries closely police tax residency and are reluctant to give up taxing rights over their residents.