El Salvador Offers Bitcoin Holders Zero Capital Gains Taxes with 90-Day Residency Requirement

El Salvador has rolled out an attractive tax plan for Bitcoin holders, making it easier to live and invest in the country. The law, Decreto 531, took effect on March 31, 2026, reducing the physical presence requirement for temporary residency from nine months to just 90 days per year.

This is part of a broader effort by El Salvador to attract foreign talent, entrepreneurs, remote professionals, and investors who want territorial tax advantages. The country already has a small but growing ecosystem of Bitcoin-focused businesses, including major crypto firms like Tether and Boltz.

The tax framework works as follows: the Bitcoin Law provides a 0% capital gains tax on Bitcoin transactions, eliminating wealth taxes, inheritance taxes, and gift taxes. Additionally, the 2024 income tax reform exempts foreign-source income entirely, effectively making it an attractive option for overseas earnings.