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 its currency, the country is an attractive location for companies looking to establish a presence in that part of the world. However, global expansion presents challenges, including obtaining work visas and permits in El Salvador for all foreign employees.

How to obtain residency in El Salvador

El Salvador appears set to introduce a residency-by-investment program after adopting Bitcoin as its official currency. The investment is likely to be capped at 3 Bitcoin, and the types of investments may include real estate and business investments. As soon as the details are confirmed through legislation, we will publish them here.

All foreigners entering El Salvador and intending to stay for more than 90 days must obtain a visa. The country offers a variety of visa types, including tourist visas, long-term stay or permanent residence visas, consular or consultee visas, and business visas. Foreign nationals who frequently travel to the country for business may apply for a Frequent Traveler Card.

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 residency in El Salvador, while citizens of Spain, Latin America, and other Spanish-speaking countries can obtain permanent residency after one year of holding a temporary residence permit. All other foreigners can apply for permanent residency after three consecutive renewals of their temporary residence permit. 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 in which the documents were issued.

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

• Application completed by the company hiring the applicant, indicating the employee's salary and length of service.
• Birth certificate with Apostille (translated into Spanish, according to Salvadoran regulations).
• Police records with apostille (translated into Spanish, according to Salvadoran regulations). The records must reflect the applicant's residency in the country where they have lived for the last two years.
• Medical report from a Salvadoran doctor stating that the applicant does not suffer from a contagious disease.
• Two copies of the applicant's passport or proof of citizenship.
• Two copies of the company's constitution (deed) with all changes that the company has undergone.
• Complete application for the Salvadoran Department of Labor.
• The fee, which will depend on the type of residence the applicant has, 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). The records must reflect the applicant's residency in the country where they have lived for the last two years.
• Sworn statement from the Salvadoran spouse certifying that he or she has the means to financially support the spouse or proof of the applicant's income (pension, etc.).
• Medical report from a Salvadoran doctor stating that the applicant does not suffer from any contagious disease.
• Two copies of the applicant's passport or proof of citizenship.
• The fee, which will depend on the type of residence the applicant has, is approved.

American citizens should be aware that all documents (e.g. birth certificate, marriage certificates, divorce decrees, criminal record checks, etc.) submitted to the Salvadoran Government (GOES) must be “Apostille” from the country of origin, also all types of documents must be issued within the last sixty (60) days or they will be null and void.

The Financial System Supervisor (Superintendencia del Sistema Financiero, SSF), an independent regulatory agency, authorizes and supervises all financial institutions in El Salvador. In August 2011, the Financial System Supervisor was merged with the stock market and pension supervisor to create a single independent regulatory agency governed by a governing council. 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 Tramite de Impresos y Exportaciones – CIEX El Salvador).

By law, all transactions conducted in Salvadoran banks must be denominated in U.S. dollars. Interest rates and fees are determined by market conditions. Private banks, branches of foreign banks, state 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 openness 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 represent approximately 95% of the Salvadoran banking sector. Banco Hipotecario and Banco de Fomento Agropecuario are government-owned, with a market share of approximately 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 residency in El Salvador, you will probably be interested in creating a life insurance policy on your tax situation by taking up a second tax residence in a country with territorial taxation, such as a Residence in Panama or a Residence in Paraguay.

You might also be tempted to find out what advantages there are to moving to the Mexican economic giant, taking up residence in Mexico

To begin your residency transfer process, contact us at info@studiopanamaitalia.com, sending us a copy of your passport, and the exact dates to start and take up residency in the country of your choice, or contact us through the contact form on this website or via WhatsApp.