El Salvador moves to the top tier of Bitcoin-friendly tax havens

El Salvador is sharpening its appeal as a low-tax base for Bitcoin holders and globally mobile earners. Under President Nayib Bukele's latest residency reform, the physical presence requirement for temporary residents has been cut to 90 days per year, down from 9 months. Paired with the country's territorial tax system, the policy offers a broad set of advantages: 0% tax on foreign-source income, 0% capital gains tax on Bitcoin, and no wealth, inheritance, or gift taxes. A 2024 tax reform codified the exemption of foreign-source income for both residents and nonresidents, reinforcing the country's pull for entrepreneurs, investors, remote workers, and digital nomads earning abroad. Incentives also target businesses. Companies operating under qualifying technology export, international services, and free zone regimes can secure up to 15 years of tax exemptions, including relief from corporate income tax, VAT, withholding taxes, import duties, and capital gains taxes. The measures add momentum to El Salvador's efforts to position itself as a global hub for Bitcoin users, entrepreneurs, and internationally mobile capital.