Real estate
Real Estate in El Salvador
Foreigners can buy urban property on the same terms as Salvadorans, with no government permit. The buyer pays a 3% transfer tax on the price above $28,571.43 and a CNR fee of $0.63 per $100. There is no general annual property tax. The CAF yearbook put the median house price in San Salvador at $542,300.
- CNR fee per $100 to register a sale, up to $5,400
- $0.632
- CNR fee per $100 to register a sale, up to $5,400
- Median house price in San Salvador, CAF yearbook
- $542,3003
- Median house price in San Salvador, CAF yearbook
- Gross rental yield from the CAF medians for San Salvador
- 4.1%3
- Gross rental yield from the CAF medians for San Salvador
Who can buy
- Urban property: houses, flats, offices and building plots, with no special permit.
- Rural land: nationals of countries that do not let Salvadorans buy rural land cannot buy it, except land for industrial establishments (Art. 109 of the Constitution).
- No one may own more than 245 hectares of rural land (Art. 105).
Source: Legislative Assembly: Constitution of the Republic of El Salvador (PDF, in Spanish)4
Costs of a purchase
| Cost | Amount |
|---|---|
| Transfer tax | 3% of the price above $28,571.43 |
| CNR registration of the sale | $0.63 per $100, minimum $8.86, maximum $5,400 |
| CNR registration of a mortgage | $0.38 per $100 |
| Notary | Agreed with the notary |
Source: PwC Worldwide Tax Summaries: El Salvador, other taxes; National Registry Centre (CNR): services of the Real Property and Mortgage Registry; INVEST: property purchase guide1,2,5
On a $250,000 house the transfer tax is $6,642.86 and the CNR fee $1,575: about $8,218, or 3.3% of the price, before notary fees.1,2
Owning and letting
- There is no general recurring tax on real estate; municipalities charge for services such as street lighting and waste collection.
- Commercial rent carries 13% IVA; housing rent is exempt.
- A gain on sale is taxed at 10%, or at ordinary rates if the property is sold within 12 months.
Source: CEPAL urban platform: El Salvador; PwC Worldwide Tax Summaries: El Salvador, other taxes; Income Tax Law, consolidated to Official Gazette No. 79 of 30 April 2025 (General Directorate of Customs, PDF, in Spanish)6,1,7
Prices and yields
| Median, CAF yearbook | Price | Rent a month | Gross yield |
|---|---|---|---|
| San Salvador | $542,300 | $1,875 | About 4.1% |
| El Salvador | $265,500 | $1,578 | About 7.1% |
Source: La Prensa Gráfica: El Salvador has the highest housing prices in the region, CAF yearbook, March 20263
InvestSalvador.com worked out the yields from the medians, which come from different samples; they show an order of magnitude, not what a given property will earn.
Sources
- PwC Worldwide Tax Summaries: El Salvador, other taxes
- National Registry Centre (CNR): services of the Real Property and Mortgage Registry (in Spanish)
- La Prensa Gráfica: El Salvador has the highest housing prices in the region, CAF yearbook, March 2026 (in Spanish)
- Legislative Assembly: Constitution of the Republic of El Salvador (PDF, in Spanish)
- INVEST: property purchase guide (PDF)
- CEPAL urban platform: El Salvador (in Spanish)
- Income Tax Law, consolidated to Official Gazette No. 79 of 30 April 2025 (General Directorate of Customs, PDF, in Spanish)
Figures checked 9 November 2026. Prepared by InvestSalvador.com for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.