Residency in El Salvador

El Salvador is the smallest but most densely populated country in Central America. With a tropical climate, a developing economy, and the use of the US dollar and Bitcoin as currency, the country is an attractive location for companies looking to establish a presence in that part of the world. However, there are challenges to global expansion, including how to obtain a work visa and permit in El Salvador for all foreign employees.

How to take up residence in El Salvador

El Salvador looks set to introduce a residency-for-investment program after adopting Bitcoin as its official currency. The investment is likely to be set at 3 Bitcoin, and investment types can include real estate and business investments. As soon as details are confirmed through legislation, we will post them here.

All foreigners who enter El Salvador and want to stay for more than 90 days must obtain a visa. The country has a variety of visa types, including a tourist visa, a long-stay or permanent residence visa, a consular or consulted visa, and a business visa. Foreign nationals who travel frequently to the country on business can apply for a Frequent Traveler Card in the country.

Work permits are combined with temporary residence permits. Both are valid for one to two years, but can be extended up to five years. Citizens of Central American countries can directly apply for permanent residence in El Salvador, and individuals from Spain, Latin America and other Spanish-speaking countries can obtain permanent residence after one year of holding a temporary residence permit . All other foreigners can apply for permanent residence after having renewed their temporary residence permit three consecutive times. Residency in El Salvador can lead to citizenship after five years or one year for citizens of Spain or Latin American countries.

Salvadoran immigration officials have expressed a desire to treat each application on a case-by-case basis because the documentation submitted by residency applicants varies depending on the state or jurisdiction where the documents were issued.

The general requirements for obtaining a work permit (for a local company) are as follows:

• Application filled out by the company hiring the applicant indicating salary, duration of employee services.
• Birth certificate with Apostille (translated into Spanish, according to Salvadoran regulations).
• Police records with Apostille (translated into Spanish, according to Salvadoran regulations). Records should reflect the applicant's residence for the last two years in the country where he has lived.
• Medical report from a Salvadoran doctor stating that the applicant is not suffering from a contagious disease.
• Two copies of the applicant's passport or proof of the applicant's citizenship.
• Two copies of the constitution (deed) of the company with all the changes that the company has undergone.
• Complete application for the Salvadoran Department of Labor.
• Fee, which will depend on the type of residence the applicant is applying for, is approved.

The general requirements for obtaining a work permit for an applicant married to a Salvadoran citizen are as follows:

• Application completed by the interested party. Birth certificate with Apostille (translated into Spanish, according to Salvadoran regulations).
• Police records with Apostille (translated into Spanish, according to Salvadoran regulations). Records should reflect the applicant's residence for the last two years in the country where he has lived.
• Affidavit of the Salvadoran spouse stating that he has the means to assist the spouse financially or proof of the applicant's income (pension, etc.).
• Medical report from a Salvadoran doctor stating that the applicant is not suffering from any contagious disease.
• Two copies of the applicant's passport or proof of the applicant's citizenship.
• Fee, which will depend on the type of residence the applicant is applying for, is approved.

American citizens should be aware that all documents (ex: birth certificate, marriage certificates, divorce decrees, criminal record checks, etc.) presented to the Salvadoran Government (GOES) must be “Apostille” of the country of origin, all types of documents must also be issued within the last sixty (60) days, under penalty of nullity.

The Financial System Supervisor (Superintendencia del Sistema Financiero, SSF), an independent regulatory agency, licenses and supervises all financial institutions in El Salvador. In August 2011, the Financial System Overseer was merged with the Stock Market and Pensions Overseer to create a single independent regulatory agency headed by a board of directors. The Central Bank regulates the financial system, administers international reserves, manages the payment system and financial services and provides services to exporters and importers (Centro de Via le Importaciones y Exportaciones – CIEX El Salvador).

By law, all transactions made in Salvadoran banks must be denominated in US dollars. Interest rates and fees are determined by market conditions. Private banks, branches of foreign banks, state-owned banks and credit unions are authorized to raise funds from the public. The banking sector is competitive thanks to the presence of foreign banks and the opening up of banking law.

Commercial banking services in El Salvador are provided by fourteen institutions: twelve private banks and two state-owned banks. The main private banks are: Banco Agrícola SA (acquired by Bancolombia); Banco Cuscatlán (formerly Citibank de El Salvador SA); Banco Davivienda Salvadoreño, SA (formerly HSBC); Scotiabank El Salvador SA; and Banco de América Central SA Together, they account for approximately 95% of the Salvadoran banking sector. Banco Hipotecario and Banco de Fomento Agropecuario are government-owned, with a market share of around 4%. In addition to the above, other financial institutions are authorized to collect public savings, including seven cooperatives and four savings and loan associations.

In addition to obtaining your residence in El Salvador, you will probably be interested in creating a life insurance policy on your taxation, taking up a second tax residence, in a country with territorial taxation, such as a residence in Panama or a residence in Paraguay

You'd also be tempted to find out what advantages moving to the Mexican economic giant would have, taking up residency in Mexico

To start your residence transfer procedure, contact us at info@studiopanamaitalia.com, sending us a copy of your passport, and the precise dates to start and take up residence in the country of your preference, or contact us via the contact form on this website or via whatsapp-telegram at +1 786-623-8177