Living in El Salvador: residence after more than 200 consecutive days, exemption up to 6,600 CFA francs ($), increments of 10, 20 and 30 CFA francs (%)

This page reports on information published by the Salvadoran Ministry of Finance and legislation issued by official bodies in the country. An individual is considered a resident of El Salvador if they reside there for more than 200 consecutive days during a calendar year, or if their principal place of business is located there. For a resident, the annual income tax is exempt up to $6,600, then taxed at 10, 20, and 30 times the annual rate. Capital gains on property held for more than twelve months are taxed at 10.

The law also specifies that assets obtained abroad do not constitute income within the meaning of this law. The BOFiP list of tax treaties in force as of January 1, 2026, does not mention any treaty between France and El Salvador.

Domicile: Article 53 of the Tax Code

The Income Tax Act no longer defines domicile itself: Articles 7 to 11 are marked "repealed" in the text. The definition is found in the Tax Code (Legislative Decree No. 230), in the copy hosted by the Directorate General of Customs. The Ministry of Finance website also cites Articles 52 to 56 of this code for the tax domicile certificate.

Article 53, entitled "passive domiciled subjects", refers to natural persons in two cases:

• those who reside temporarily or permanently in the country for more than two hundred consecutive days during a calendar year;
• those which have the main headquarters of their business in El Salvador, that is to say, according to the text, the one which produces the largest amount of their income.

A person considered domiciled for more than one calendar year may be absent for up to 165 days without losing this status. Article 54 adds that, for all tax purposes, the domicile of an individual is their habitual residence, or failing that, the place where they carry out their civil or commercial activities, or failing that, the place they indicate in the register or in their last income tax return.

Income tax scale for residents

Article 37 of the law, in the text published by the Judicial Authority (the most recent decree mentioned being No. 568 of May 7, 2026), establishes the annual tax rates for individuals, estates, and trusts domiciled in the country. Executive Decree No. 10 of April 30, 2025, indicates that Legislative Decree No. 293 of the same date raised the tax-exempt portion to $6,600 per year, or $550 per month.

The table is reproduced as printed in the text. Non-domiciled individuals, estates, and trusts calculate their tax at a rate of 30% of their net or taxable income (section 37).

For salaried employees, Executive Decree No. 10 publishes withholding tax tables that incorporate this exemption, with recalculations in June and then again in December. It mandates a tax return for taxpayers whose annual income exceeds $60,000. Article 38 of the law generally exempts salaried employees whose tax is withheld from filing, except for those with annual incomes exceeding $60,000.

Income earned abroad

Article 3 of the law lists what does not constitute income. Point 4 refers to "all values received for any reason whatsoever, obtained abroad", including any movement of capital or remuneration in cash or in kind, received by natural persons, legal entities or entities, whether domiciled in the country or not, and originating from any source located abroad.

Article 16, on the other hand, deems income from property located in the country, from activities carried out or capital invested in the country, and from services provided or used in the national territory, to be obtained in El Salvador, even if received or paid outside the Republic.

This page does not detail the application of these two articles to a particular case.

Dividends, interest and capital gains

The text of the law sets the following rates for a natural person domiciled there.

Article 4 exempts deposit interest when the average monthly balance is less than $25,000 and the depositor is a resident individual holding the deposit. The same article exempts capital gains from the sale of one's first home if the transaction value does not exceed 723 minimum wages and the seller is not ordinarily engaged in real estate trading. Article 14 allows capital losses to be offset against gains in the following five years.

Real estate, inheritances and gifts

The Real Estate Transfer Tax Act (Legislative Decree No. 552 of December 18, 1986) imposes the tax on the individual or legal entity acquiring real estate. Article 4 exempts the portion of the transfer value up to 250,000 colones and applies a 3-% tax on the amount exceeding that; an authentic interpretation from 1993 clarifies that the rate applies to the excess. The published text is expressed in colones and does not provide a conversion to US dollars. The copy reviewed incorporates reforms up to Legislative Decree No. 230 of December 14, 2000.

For income tax purposes, Article 3 of the law classifies the value of assets received by bequest or inheritance (point 2) and that of gifts (point 3) as not being considered income. For gifts, the exclusion is limited to transfers between ascendants and descendants up to the second degree of kinship and between spouses.

The purchase of property by a foreigner and local property taxes are not detailed here.

Relationship with France: no agreement

The BOFiP (BOI-ANNX-000306, version of April 29, 2026) only includes agreements and conventions in force on January 1, 2026. El Salvador is not included. In the absence of a convention, the tax treatment falls under French domestic law.

• Tax residence in France Article 4 B of the CGI, according to the BOFiP, includes persons who have their home or main residence in France, those who carry out a professional activity there, or those who have the center of their economic interests there.
• Income from foreign sources The instructions for form 2047 (2025 income) require the declaration of income from countries with which France does not have a tax treaty. For securities, they specify that this income does not qualify for a tax credit and must be declared net of any foreign tax withheld.

What this page does not cover

It does not detail digital assets, social security, local taxes, pension schemes for retirees or new residents, or annual reporting requirements beyond the aforementioned threshold. For stays, the travel advice sheet on diplomatie.gouv.fr, updated on October 4, 2026, indicates that French citizens do not need a visa for stays of less than 90 days, that this duration applies to all four countries of the C4 agreement, and that the passport must be valid for at least six months upon entry. Long-term residence permits are not detailed here. Balmont Conseil is neither a law firm nor a local tax advisor: local tax matters should be addressed with a professional based in El Salvador. French matters, including the departure declaration and accounts to be declared, are covered in our pages on tax residency and exit tax.

What changes depending on your situation

• The number of consecutive days spent in El Salvador during the calendar year, and the place that generates the bulk of your income.
• The nature of your income: salary, dividends, interest, capital gains, and their place of origin.
• The asset in question, its value and the length of time it was held before being sold.
• Your residency situation in France and El Salvador, year by year.

The rule depends on your situation. No results are guaranteed.