El Salvador · Tax on foreign income
Does El Salvador tax foreign income? A guide for Americans
Short answer
Foreign income has been untaxed since 2024, so a retiree's US income owes nothing here. Pay for work you do in El Salvador is likely taxed.
What you'd pay, by situation
| Retiree on US income $0 a year, however long you stay | Income from abroad isn't taxed since 2024, so US Social Security, pensions and interest owe nothing here. |
|---|---|
| Remote worker paid from the US About $4,400 on 90 days of a $60,000 salary; about $14,600 all year | Pay for days you work in El Salvador is likely taxed, even if it's paid from the US Needs review |
| Working for a local employer Residents 0–30%; non-residents 30% | Pay for work here is taxed. Residents pay 0–30% with the first $6,600 tax-free; non-residents pay a flat 30%. |
Checked against the law The foreign-income exclusion, the source rule and the 2025 rates.
Needs review Remote pay could be untaxed if the tax office reads the 2024 rule broadly.
How it works
- Tax residence: more than 200 days in a row in a calendar year, or your main business is here.
- What's taxed: only income from El Salvador. Work done here counts, wherever you're paid.
- Retiree routes: pension and income residents also get their own exemption on money from abroad.
- No US tax treaty: Salvadoran tax paid may be credited on your US return, which you still file; see a tax adviser.
- Social Security agreement: none found with the US, so check what you'd owe on both sides.
Taxes in El Salvador, with worked examples → The full El Salvador guide →
Questions people ask
Does El Salvador tax US Social Security and pensions?
Income from abroad isn't taxed since 2024, so US Social Security, pensions and interest owe nothing here.
Remote worker paid from the US in El Salvador: what would I pay?
Pay for days you work in El Salvador is likely taxed, even if it's paid from the US (Needs review) Ballpark: About $4,400 on 90 days of a $60,000 salary; about $14,600 all year.
Working for a local employer in El Salvador: what would I pay?
Pay for work here is taxed. Residents pay 0–30% with the first $6,600 tax-free; non-residents pay a flat 30%. Ballpark: Residents 0–30%; non-residents 30%.