LLC × residence calculator · Edition 2026.09
If you lived in El Salvador: how much tax you would pay on your LLC profit
El Salvador is territorial: only Salvadoran-source income is taxed (art. 16 LISR). Since 22 March 2024 (Decree 969, published 14 March, in force eight days later), art. 3.4 LISR excludes from the concept of income any amount received from abroad (remuneration, profit or capital movement), whether received by an individual or a company, resident or not. The profit of a transparent LLC for work rendered outside El Salvador is not income: nothing is reported or paid on it.
Isaac Cubero · Checked on 14 September 2026 · territorial
At $100,000 of profit
On $100,000 of LLC profit, living in El Salvador, you would pay $0 income tax (territorial regime), with conditions.
territorial
| Income excluded as foreign-source (art. 3.4 LISR) | $0 |
| Estimated total | $0 |
Sources: Legislative Decree 969 (12 Mar 2024), Official Gazette No. 52, Volume 442: reforms art. 3 LISR (item 4, foreign-source income excluded) · Legislative Decree 293 (30 Apr 2025), Official Gazette No. 79, Volume 447: current art. 37 LISR table (individuals) · Legislative Decree 957 (14 Dec 2011): art. 41 LISR (corporate income tax 30%/25%) and art. 72 LISR (5% withholding on distributed profits) · Legislative Assembly of El Salvador, Laws and Decrees search tool (asamblea.gob.sv); Income Tax Law, Legislative Decree 134 of 1991 · Fixed exchange rate 1 USD/USD.
Rank 1 of 38 residences by effective rate at this profit.
- The work is rendered entirely outside El Salvador: no clients, servers or office in the country.
- The profit and the dividend are foreign-source income under art. 3.4 LISR: there is no scale to apply because the result is 0.
- Dollarized economy since 2001: 1 USD = 1 USD.
- If you render the service from El Salvador, the income becomes Salvadoran-source (art. 16) and is taxed on the art. 37 scale: 0% up to $6,600, then 10%, 20% and 30% (fixed quotas of $212.12, $720.00 and $3,462.86; the April 2025 reform only moved the exempt bracket, not the rest of the table).
- Art. 3.4 sets no minimum investment, minimum residence or holding period: the text of Decree 969 carries no conditions, unlike Uruguay's tax holiday.
- We found no CFC (controlled foreign company) regime in the LISR: nothing reviewed attributes the LLC's or the foreign company's undistributed profit to you.
- Decree 969 also repealed parts of arts. 14-A, 16 and 27 LISR on foreign securities and deposit income: the reform aims to ease capital inflows, not to create a conditional tax-residence regime.
- Legislative Decree 969 (12 Mar 2024), Official Gazette No. 52, Volume 442: reforms art. 3 LISR (item 4, foreign-source income excluded)
- Legislative Decree 293 (30 Apr 2025), Official Gazette No. 79, Volume 447: current art. 37 LISR table (individuals)
- Legislative Decree 957 (14 Dec 2011): art. 41 LISR (corporate income tax 30%/25%) and art. 72 LISR (5% withholding on distributed profits)
- Legislative Assembly of El Salvador, Laws and Decrees search tool (asamblea.gob.sv); Income Tax Law, Legislative Decree 134 of 1991
- Fixed exchange rate 1 USD/USD.
At three profit levels
What you would pay in El Salvador depending on what your LLC earns.
| Annual profit | Estimated tax | Effective rate | You would keep |
|---|---|---|---|
| $50,000 | $0 | 0% | $50,000 |
| $100,000 | $0 | 0% | $100,000 |
| $250,000 | $0 | 0% | $250,000 |
And if it were not an LLC
The five cheapest structures from El Salvador, distributing all the profit.
| Structure | Corporate | Withholding | You, in El Salvador | Total |
|---|---|---|---|---|
| US LLC | $0 | $0 | $0 | 0%$0 |
| UAE free zone | $0 | $0 | $0 | 0%$0 |
| Hong Kong Ltd | $8,250 | $0 | $0 | 8.3%$8,250 |
| Bulgarian EOOD | $10,000 | $4,500 | $0 | 14.5%$14,500 |
| Cyprus Ltd | $15,000 | $0 | $0 | 15%$15,000 |
Frequently asked questions
Does a US LLC pay tax if I live in El Salvador?
The LLC pays no US federal tax if it has no US activity. El Salvador is territorial: only Salvadoran-source income is taxed (art. 16 LISR). Since 22 March 2024 (Decree 969, published 14 March, in force eight days later), art. 3.4 LISR excludes from the concept of income any amount received from abroad (remuneration, profit or capital movement), whether received by an individual or a company, resident or not. The profit of a transparent LLC for work rendered outside El Salvador is not income: nothing is reported or paid on it.
How much would I pay in El Salvador on $100,000 of profit?
On $100,000 of LLC profit, living in El Salvador, you would pay $0 income tax (territorial regime), with conditions. If you render the service from El Salvador, the income becomes Salvadoran-source (art. 16) and is taxed on the art. 37 scale: 0% up to $6,600, then 10%, 20% and 30% (fixed quotas of $212.12, $720.00 and $3,462.86; the April 2025 reform only moved the exempt bracket, not the rest of the table).
Is El Salvador a territorial country?
Yes: it only taxes local-source income. The profit of an LLC operated from abroad is not taxed, provided the work is rendered outside El Salvador.
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