BlockBeats reported on June 13 that El Salvador is continuing to refine its immigration system in order to attract high-net-worth foreign talent and capital, including families with cross-border needs. Under Decree No. 531, which takes effect on March 31, 2026, the residency requirement for temporary residents will be reduced from a previous obligation to stay in the country for nine months each year to only 90 days per year, whether accumulated across the year or completed consecutively.
Decree No. 531 Reduces the Residency Threshold
The adjustment is aimed mainly at entrepreneurs, investors and remote workers who need to move frequently across borders. For these groups, lowering the stay requirement from nine months to 90 days allows them to maintain temporary resident status in El Salvador while continuing to manage overseas businesses, investment arrangements or remote work schedules. The information provided states that El Salvador is using immigration reform to connect residency flexibility with its goal of attracting capital and foreign professionals.
On taxation, El Salvador offers one of the most attractive regimes in Latin America for individuals with foreign-source income. The country applies a territorial tax system, meaning that only income generated inside El Salvador is subject to taxation there. A major income tax reform in 2024 further clarified that foreign-source income is exempt from income tax for both residents and non-residents.
Foreign Income, Bitcoin Gains and Other Taxes
Under this framework, freelancers, remote workers and entrepreneurs with income generated outside El Salvador can receive 0% Salvadoran income tax treatment on their foreign income, with no cap on the amount. The groups specifically mentioned include content creators, developers and entrepreneurs whose earnings are sourced abroad. For individuals whose income is primarily tied to global clients, online business or cross-border activity, the central feature of the regime is that El Salvador does not tax income earned outside its territory.
In addition, under Salvadoran law, Bitcoin-related capital gains are not taxed. The country also does not impose a wealth tax, inheritance tax or gift tax. The practical focus is whether an individual’s original country recognizes this arrangement. The source information notes that most countries do not easily give up taxing rights over their tax residents and often conduct strict reviews and pursue claims when determining tax residency and tax obligations.