🌎 Americas
Crypto & taxes in El Salvador
- Bitcoin legal tender
- Since 2021; reformed in 2025: now voluntary use only
- Mandatory acceptance
- Abolished (IMF deal, Jan 2025): merchants not required
- Crypto capital gains tax
- No specific tax on BTC investment gains for non-residents
- Tax payment in BTC
- No longer allowed since 2025
Crypto regulation
El Salvador adopted Bitcoin as legal tender in 2021, but under its $1.4 billion IMF agreement the Bitcoin Law was reformed in early 2025: the 'currency' characterization was removed, acceptance is now voluntary, and the State scaled back its role (winding down the Chivo wallet). Digital-asset service providers are regulated by the CNAD (National Digital Assets Commission) under the Digital Assets Law.
Taxation
The US dollar remains the official currency and unit of account. The country has historically not levied capital gains tax on Bitcoin and offered exemptions to attract foreign investors under the Digital Assets Law; paying taxes in Bitcoin, previously permitted, was removed in 2025.
Useful information
For new residents El Salvador remains among the most crypto-friendly jurisdictions, with a light tax regime on digital assets. Note, however, that since 2025 no merchant is required to accept Bitcoin and the state infrastructure (Chivo) is being wound down.