El Salvador Reduces Temporary Resident Requirements to 90 Days, Offers 0% Tax on Overseas Income and Bitcoin Gains

According to BlockBeats, El Salvador reduced temporary resident requirements from 9 months to 90 days annually on June 13, under decree 531 effective since March 31, 2026. The adjustment targets entrepreneurs, investors, and remote workers requiring frequent international mobility.

The country applies territorial taxation, meaning only income earned within El Salvador is subject to tax. A 2024 income tax reform clarified that overseas-source income for both residents and non-residents is exempt from El Salvadoran income tax with no amount restrictions. Bitcoin capital gains are also untaxed, and the country levies no wealth tax, inheritance tax, or gift tax.