El Salvador’s Congress approved a new law, on 20 May 2025, which imposes a 30% tax on transactions from foreign donors to local organisations.
The law is set to take effect eight days after its publication in the official gazette.
The legislation seeks to improve transparency and accountability among foreign donors, ensuring greater oversight of how local entities operate and influence society in El Salvador. The revenue generated from the tax will be utilised for improving various social and public initiatives.
