Expatriating to El Salvador: Complete Guide to Live, Work and Invest

What is the NIT?

NIT = Número de Identificación Tributaria (Tax Identification Number)

Why it's essential:

• Mandatory for any economic or professional activity
• Required to open a bank account
• Required to create a company
• Essential for paying taxes
• Mandatory for signing an employment contract

How to obtain it: Apply in person at the Ministry of Finance (Ministerio de Hacienda) with passport and proof of address.

The Correct Process

Important: The residence/immigration visa must be requested AFTER arriving in El Salvador, at the General Directorate of Migration and Immigration (DGME) in San Salvador.

It is NOT necessary to apply for an immigration visa before leaving your country.

Steps to Obtain Residence

1. Enter El Salvador with tourist visa (90 days) or ID card (for CA-4 countries)
2. Obtain the NIT (Ministry of Finance, in person in San Salvador)
3. Apply for residence: Submit complete file to the DGME (in person)
4. Wait for approval: During processing (weeks to months), keep your tourist status valid
5. Get residence card (DUI): Once approved, obtain the Documento Único de Identidad
6. Renewal: According to residence type (usually 1-2 years, renewable)

Required Documents - IMPORTANT: Apostille

⚠️ APOSTILLE REQUIREMENT:

All official foreign documents must be apostilled (Hague Convention) in their country of origin BEFORE arriving in El Salvador.

🔴 Apostille CANNOT be done in El Salvador - Documents must arrive already apostilled.

Documents that MUST be apostilled:

• Criminal record check (background check/certificate of good conduct) - MANDATORY
• Birth certificates - if required
• Marriage certificates - if married
• Divorce decrees - if divorced
• Official medical certificates - if issued by official authority
• Diplomas and education certificates - if required for your residence type
• Official proof of income (pension attestations, official bank statements)

Where to get the apostille?

• In the country of origin of the document
• From the competent authority for apostille (usually: Ministry of Foreign Affairs, High Court, Prefecture, etc.)
• El Salvador has been a member of the Hague Apostille Convention since 2017

Important note for non-member countries: If your country is not a member of the Hague Convention, documents must be legalized by the El Salvador embassy (different and longer process).

Documents required for immigration:

• Valid passport (at least 6 months validity) + copies
• APOSTILLED criminal record from country of origin
• Apostilled documents (see list above according to your situation)
• Proof of income (pension, investments, salary, etc.) - apostilled if official document
• Proof of address in El Salvador (rental contract, utility bills)
• NIT
• Completed DGME forms
• ID photos (passport format, recent)

Tip: Prepare all your documents with apostille BEFORE leaving your country. Apostille in El Salvador is not possible for foreign documents.

CA-4 Countries (Central America-4)

Countries concerned: Guatemala, Honduras, El Salvador, Nicaragua

Benefits:

• No passport or visa needed to enter and stay up to 90 days
• Entry with ID card only (passport not mandatory)
• Free movement between the 4 countries
• Simplified residence process
• Possible apostille simplification (verify CA-4 agreements)

For permanent residence: Simplified administrative process thanks to CA-4 agreements. Check directly with DGME.

Important: Always verify specific requirements for your nationality with the DGME or embassy, as procedures may vary.

Hispanic Nationals from Latin America

Countries concerned: Mexico, Costa Rica, Panama, Dominican Republic, Colombia, Venezuela, Ecuador, Peru, Bolivia, Chile, Argentina, Uruguay, Paraguay, Brazil, etc.

Potential benefits:

• Bilateral agreements may facilitate immigration
• Process often simpler than for non-Hispanics
• Language: no language barrier (Spanish is the official language)
• Easier cultural integration
• Hague Convention - most Hispanic countries are members, so apostille can be done locally

Important: Check specific agreements with your country at the DGME or embassy, as each country has different rules.

Other Nationalities (EU, USA, Canada, Asia, etc.)

Tourist visa: Generally 90 days without visa (check according to your passport)

For residence: The entire process is done in person at the DGME

Process: Standard, without special advantages

Apostille: All EU, USA, Canada countries are members of the Hague Convention - apostille is done in your country of origin

Rentista Residence (Passive Income)

For individuals with passive income from abroad.

Accepted income sources:

• Retirement pensions
• Investment income (dividends, interest)
• Rental income from real estate
• Annuities

Estimated minimum income: $1,000-1,500 USD per month (amount to verify with DGME for exact current figures)

Benefits: Legal residence, possibility to work

Note: Exact amounts and eligibility criteria change regularly. Consult the DGME for the most up-to-date information.

Pensionado Residence (Retirees)

For retirees receiving government or private pensions.

Required documentation:

• Proof of monthly pension (apostilled if official document)
• Clean criminal record (apostilled)
• Medical certificate
• Valid passport

Estimated minimum pension: $600-1,000 USD per month (verify with DGME)

Benefits for Hispanic retirees: Process often simplified

Inversionista Residence (Investor)

For foreigners investing in the Salvadoran economy.

Accepted investment types:

• Real estate (purchasing properties)
• Business creation
• Government securities
• Tourism projects

Estimated minimum investment: $50,000-100,000 USD (variable according to investment type, verify with DGME and Ministry of Economy)

Freelance / Digital Nomad Residence

For professionals working remotely for foreign companies.

Conditions:

• Stable proven monthly income
• Online work for clients/companies outside El Salvador
• NIT mandatory

Estimated minimum income: $1,500-2,000 USD/month (verify with DGME)

Absolute Prerequisite: The NIT

Before any business creation: You must obtain the personal NIT, then the company NIT.

Without NIT, it is impossible to:

• Open a business bank account
• Issue legal invoices
• Pay taxes
• Hire employees
• Sign commercial contracts

Available Business Types

• S.A. de C.V. (Sociedad Anónima de Capital Variable): Corporation with variable capital - for large companies
• S.R.L. (Sociedad de Responsabilidad Limitada): Limited liability company - for SMEs
• Branch: Office of a foreign company
• Sole Proprietor: Individual microenterprise

Steps to Create a Company

1. Obtain personal NIT (if not already done)
2. Reserve trade name at Commerce Registry
3. Draft and notarize bylaws
4. Obtain company NIT (Ministry of Finance)
5. Register company at Commerce Registry
6. Open business bank account (requires company NIT)
7. Obtain municipal licenses

Microenterprises

For small activities, the process is simplified.

Conditions:

• Annual revenue under a certain threshold
• Fewer administrative formalities
• Simplified tax regime
• NIT remains mandatory, even for a microenterprise

Corporate Income Tax

Standard rate: 25% on taxable income

⚠️ To verify: Tax rates can change. Consult the Ministry of Finance (Hacienda) for up-to-date rates.

Taxable income: Worldwide revenue for resident companies

Payment: Monthly advances and annual regularization

Personal Income Tax

Bracket: Progressive according to income brackets

Foreign-source income: Often exempt (confirm with an accountant)

NIT mandatory to declare: All income must be declared with your NIT.

⚠️ To verify: Brackets and rates can vary. Consult an accountant or the Ministry of Finance.

VAT (IVA)

Rate: 13% on most goods and services

Exemptions: Some basic necessities, medical services, education

⚠️ To verify: Exemption lists can change. Verify with the Ministry of Finance.

Monthly Estimates (2024-2025)

• Housing: $400-800 USD (1-2 bedroom apartment in San Salvador)
• Food: $300-500 USD
• Transport: $50-150 USD (car or public transport)
• Utilities: $50-100 USD (electricity, water, internet)
• Health insurance: $50-200 USD depending on coverage
• Total estimated: $1,000-2,000 USD/month for a couple

Note: These amounts are indicative and vary by lifestyle and location.

Bank Accounts

Opening: NIT mandatory + proof of residence + passport

Currencies: USD accounts (official currency since 2001)

Major banks:

• Banco Agrícola
• Banco Hipotecario
• Banco Cuscatlán
• Banco Promérica

Cryptocurrencies

Bitcoin has been legal tender in El Salvador since 2021. Some businesses accept it but USD remains widely dominant in daily transactions.

Health Insurance

Public (ISSS): Accessible to workers with NIT and mandatory contributions

Private: Wide range of international and local insurance

Medical Care

San Salvador has good quality private hospitals. Rural areas have more limited infrastructure.

For the Most Up-to-Date Information

• General Directorate of Migration (DGME): www.migracion.gob.sv - For all residence questions
• Ministry of Finance (Hacienda): For NIT and taxation
• Ministry of Economy: For foreign investment
• El Salvador Embassy: In your country of residence for specific questions

Priorities Once Arrived

1. Obtain the NIT (absolute priority #1)
2. Open a bank account (requires NIT)
3. Submit residence application to the DGME (in person)
4. Get the DUI (ID card) once residence is approved

Before Moving - Apostille Checklist

• Get ALL official documents apostilled in your country of origin
• Check requirements specific to your nationality (especially if Hispanic)
• Consult CA-4 benefits if you are from the region
• Prepare all documents (translations if necessary)
• Consider an exploratory visit before permanent expatriation
• Budget for administrative fees