El Salvador ends income tax on foreign funds after launching ‘Bitcoin Passport’

12:31 PM • Mar 14, 2024

El Salvador recently passed a new law that eliminates income taxes on foreign money coming into the country.

This news was announced on X (formerly Twitter) by Nayib Bukele, the self-described ‘coolest dictator,’ who has become a prominent player in the crypto ecosystem thanks to El Salvador declaring bitcoin a compulsory tender and investing public funds into bitcoin and bitcoin mining.

This change follows a recent initiative that will allow bitcoin investors to purchase a visa and eventually become eligible for citizenship in El Salvador.

Congress has reformed our income tax law, for international investments and money transfers, dropping the rate from 30% to 0%.

La Asamblea ha reformado la ley del impuesto sobre la renta, para inversiones internacionales y transferencias de dinero, bajando la tasa del 30% al 0%. https://t.co/YRDVegSbb5
— Nayib Bukele (@nayibbukele) March 13, 2024

Bukele is also known for his extensive ‘anti-gang’ crusade — an emergency decree was recently extended for the 24th time — and he has engaged in mass incarceration without due process. He has also been accused of a variety of human rights abuses.

Bukele has asserted that he recently won re-election in El Salvador, despite a constitutional provision preventing him from being re-elected. The election was reportedly marred by serious issues, including mismarked ballots and a remarkably high turnout, but despite these problems, Bukele is set to remain as president of El Salvador.

Fiscally, El Salvador has been struggling, defaulting last year on some pension debts. Many of the previously proposed remedies, such as the ‘Volcano Bitcoin’ Bond, have been delayed, forgotten, or reimagined. El Salvador has been relying on debt buybacks as a way to try to assuage these fears.

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