El Salvador just made the pitch to Bitcoin holders about as simple as it gets: show up for three months, pay zero taxes on your crypto gains. The country that turned heads by adopting Bitcoin as legal tender in 2021 is now layering on residency and tax incentives that read like a wish list drafted by a crypto-native accountant.
The key mechanism is Decreto 531, which took effect on March 31, 2026. It slashed the physical presence requirement for temporary residency from nine months down to just 90 days per year. Pair that with a 2024 income tax reform that exempts foreign-source income for both residents and non-residents, and you’ve got an effective 0% tax rate on overseas earnings and Bitcoin capital gains for anyone who qualifies.
How the tax framework actually works
First, the Bitcoin Law, formally known as Decree 57 from 2021, already provides a 0% capital gains tax on Bitcoin transactions. It also eliminated wealth taxes, inheritance taxes, and gift taxes, effectively removing the entire category of taxes that typically erode crypto holdings over time.
Second, the 2024 income tax reform went further by exempting foreign-source income entirely. If your money comes from outside El Salvador, the government doesn’t want a cut.
