About El Salvador
El Salvador is the first country to adopt Bitcoin as legal tender alongside the US dollar, offering a dollarized economy, competitive labor costs, and free trade zone incentives for investors.
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Case Study
United Kingdom Corporate Client
Start Date: May 18, 2026
Frequently Asked Questions
No. Clients should sign documents without filling in the date. Leaving the date blank avoids having to re-sign if an error is found and the documents must be corrected.
Dollarized Economy
Since 2001, El Salvador has adopted the U.S. dollar as its legal currency. This provides foreign investors with a stable monetary environment, eliminating exchange rate risks and enhancing predictability. The dollarized economy makes international trade and investment operations easier for multinational companies.
Free Trade Agreements and Access to Regional Markets
El Salvador has signed several free trade agreements, including the Central America Free Trade Agreement (CAFTA-DR) with the U.S., as well as agreements with the European Union, Mexico, and Colombia. These agreements provide easy access for Salvadoran products and services to major international markets.
Manufacturing and Outsourcing Hub
El Salvador boasts a relatively low-cost yet skilled labor force, especially in manufacturing and outsourcing industries. In particular, it attracts foreign companies in sectors like textiles, garment manufacturing, and business process outsourcing (BPO), where many firms have established factories and service centers.
Strategic Geographic Location
Positioned centrally in Central America, El Salvador enjoys a convenient geographical location close to both the U.S. and South American markets. This strategic position makes it a hub for international trade and logistics, with strong air and sea transportation links that enable rapid connection to key markets.
General CIT Rate
30%
CIT Return Due Date
April 30
CIT Payment Due Date
April 30
CIT Estimated Payment Due Date
"During the first ten working days of the following month."
Resident Withholding Tax (Dividend/Interest/Royalty)
5/10/10
None-Resident Withholding Tax (Dividend/Interest/Royalty)
5/20/20
General VAT Rate
13
General Capital Gain Tax Rate
10 or 30
Composite Effective Average Tax Rate
27.49%
Composite Effective Marginal Tax Rate
18.93%
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