Do I have to pay taxes in El Salvador as an expat?

El Salvador uses a territorial tax system, meaning you are only taxed on income earned within El Salvador. Foreign-sourced income (remote work for a foreign employer, foreign investments, pensions from abroad) is generally not taxed. For locally earned income, the tax rates are progressive: 0% on the first $4,064 annually, 10% on $4,064-9,142, 20% on $9,142-22,857, and 30% above $22,857. The sales tax (IVA) is 13%, included in most listed prices. Property tax is minimal ??? zero on properties valued under $28,571, and 0.5-1% above that. If you establish a business in El Salvador, corporate tax is 25-30%. There are no capital gains taxes on the sale of real property held for more than one year. Bitcoin transactions are tax-exempt. The tax year runs January to December, with annual filings due in April. Consult a local accountant (contador) for your specific situation.