El Salvador imposes an income tax on foreign investments and remittances
El Salvador's Legislative Council has approved a measure to reduce the income tax on foreign investments and remittances from 30% to 0%.
President Naib Bukele broke the news in a March 12 post on the X social media platform:
“Congress revised our income tax code, for international investments and remittances, from 30% to 0%.”
The Asamblea Legislativa of the Legislative Council of El Salvador, in a separate X post, the measure was approved by 69 votes from, possibly, 84 (barring any vote or abstention).
In Spanish with Google Translate:
“With the support of 69 votes, we will amend the income tax law, which will allow family or foreign capital to be brought into the country free of paying this tax, regardless of the amount.”
El Salvador has undergone a radical transformation following the 2019 election of Buquele. In the year He announced a Bitcoin (BTC) legal tender across the country in 2021 and bought 200 BTC in compensation. In the years that followed, El Salvador's economy showed steady growth. In the year Its gross domestic product was $24.9 billion in 2019, according to the World Bank. It will reach $32.4 billion by 2022. Projections for 2023 indicate growth of 2.8%.
Now, as Cointelegraph recently reported, El Salvador's 2021 Bitcoin purchases have generated $85 million in profits since BTC broke through the 72,000 mark on March 10.
Bukele was re-elected on February 4 with 85 percent or more of the vote.
Related: Cointelegraph's top people in crypto and blockchain #69: Naib Bookel
This most recent overhaul of the tax code comes after El Salvador eliminated taxes related to technological innovation in April 2023. Cointelegraph reported at the time that the country had passed legislation to eliminate income, property and capital gains taxes on technology innovations. Software programs, coding, applications and AI development, as well as manufacturing of computer and communication hardware.
