El Salvador pyramids showcase Ecuadors past.
There are no restrictions on foreigners buying property in urban areas but rural purchases are available only for those international investors with industrial plans. No person, regardless of citizenship, is allowed to own more than 600 acres of land.
Total transaction costs are reasonable with buyers paying anywhere from 3.78 – 4.63 percent and sellers paying 5 percent. These fees include registration and notary costs, both paid by buyers, and an agent charge paid by sellers. Instituto Libertad y Progreso keeps a computerized record of real estate registrations, making it easy to clearly identify ownership a given property. The registration process can take up to two months.
El Salvador’s taxes are on the high side, charging non-residents 25 percent on wages and revenues, including rental income, while depreciation, value added tax and operating costs are deducted from gross income. Income from commercial real estate is also liable for a Value Added Tax of 13 percent. Non-residents have to also pay a 25 percent capital gains tax when selling property, with the exception of those sold within three years of possession.
For those running businesses, a 10-year corporate tax break and the ability to import and export comes with a business license, according to Robinson.
For big purchases such as real estate and cars, a tax card known as NIT is needed.
