Property Costs and Taxes in El Salvador
Costs of a purchase
| Cost | Amount | Paid by |
|---|---|---|
| Transfer tax | 3% of the price above $28,571.43, declared within 60 days | Buyer |
| CNR registration of the sale | $0.63 per $100, minimum $8.86, maximum $5,400 | Buyer, usually |
| CNR registration of a mortgage | $0.38 per $100 | Borrower |
| Extracted certification | $8.86 | Buyer |
| Tax identification number (NIT) | $2 the first time | Foreign buyer |
| Notary fees | Agreed with the notary | As agreed |
Source: INVEST: property purchase guide; CNR: services of the Real Property and Mortgage Registry; Deloitte Legal: real estate law in El Salvador1,3,4
Figures checked November 2026. A guide only, not tax, legal or financial advice.
Sources for the calculator
Worked example
- House price: $250,000.
- Transfer tax: 3% of $221,428.57 = $6,642.86.
- CNR registration of the sale: $1,575.
- Total before notary fees and any mortgage costs: about $8,218, or 3.3% of the price.
Source: INVEST: property purchase guide; CNR: services of the Real Property and Mortgage Registry1,3
Owning property
CEPAL, the UN Economic Commission for Latin America, notes that El Salvador has no general recurring tax on real estate; the property tax on wealth was abolished in the 1990s. Municipalities charge for services such as street lighting and waste collection, often by square metre, and businesses pay a monthly municipal tax on the assets they hold in the municipality. A municipal clearance showing these are paid is needed to register a sale.6,7,9,4
Letting and selling
- VAT: rent for commercial property carries 13% VAT; residential leases are exempt.
- Capital gains: a net gain is taxed at 10% under Article 42 of the Income Tax Law. A property sold within 12 months of purchase is taxed at ordinary income tax rates instead.
- High-rise incentive: the 15-year income tax exemption for buildings of 35 storeys or more benefits developers and builders, not buyers or tenants.
Source: 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); Special provisions for high-rise real estate projects, text (Judicial Documentation Centre, PDF, in Spanish)2,5,8
Frequently Asked Questions
What are the costs of buying property in El Salvador?
The 3% transfer tax on the part of the price above $28,571.43, paid by the buyer, and the CNR registration fee of $0.63 per $100. On a $250,000 house the total before notary fees is about $8,218, or 3.3% of the price.
Is there an annual property tax in El Salvador?
El Salvador has no general annual property tax. Owners pay municipal charges for services, and businesses pay municipal taxes on their assets.
How are rents and gains on property taxed?
Commercial rents carry 13% VAT, while residential leases are exempt. A gain on sale is taxed at 10% if the property was held for more than 12 months.
Sources
- INVEST: property purchase guide (PDF)
- PwC Worldwide Tax Summaries: El Salvador, other taxes
- CNR: services of the Real Property and Mortgage Registry (in Spanish)
- Deloitte Legal: real estate law in El Salvador
- Income Tax Law, consolidated to Official Gazette No. 79 of 30 April 2025 (General Directorate of Customs, PDF, in Spanish)
- CEPAL urban platform: El Salvador (in Spanish)
- Lincoln Institute of Land Policy: municipal taxation in San Salvador
- Special provisions for high-rise real estate projects, text (Judicial Documentation Centre, PDF, in Spanish)
- San Salvador municipal ordinance on service charges, Official Gazette 2014 (Judicial Documentation Centre, 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.
