Taxes · SLV
Taxes in El Salvador
El Salvador made Bitcoin legal tender in September 2021 and exempts Bitcoin transactions from capital gains tax and VAT for all holders. Individuals receiving Bitcoin as payment for goods or services are also exempt from income tax on those amounts. The treatment of other cryptocurrencies and commercial mining operations remains largely unaddressed by formal regulatory guidance as of January 2026.
Income tax
Bitcoin received as income (e.g., salary, services) is exempt from income tax under the Bitcoin Law. Mining and staking income from other cryptocurrencies is not clearly addressed by specific legislation as of January 2026.
VAT / GST
Exempt. The Bitcoin Law explicitly exempts Bitcoin transactions from VAT. Transactions in other cryptocurrencies lack the same explicit exemption but are generally not taxed in practice for individuals.
Capital gains
No capital gains tax applies to Bitcoin or cryptocurrency disposals for individual holders. El Salvador's Bitcoin Law (2021) exempts Bitcoin capital gains from taxation. Other cryptocurrencies may technically be subject to general income tax rules, but enforcement is unclear.
Type case, not tax advice: figures describe a single average earner and standard rates; your situation depends on residency, deductions and local rules. Verify with the tax authority before acting. — Fiatmap