El Salvador’s Ministry of Finance released the updated General Guide on preferential tax regimes (tax havens) on 27 September 2024, detailing jurisdictions and territories considered tax havens for the 2025 fiscal year, including low and no-tax areas.

Payments to recipients residing in a listed jurisdiction or territory incur a higher 25% withholding tax rate. Entities in unlisted jurisdictions/territories may face increased withholding and transfer pricing rules if they have tax exemptions and are taxed below 80% of El Salvador’s rate, or benefit from low-tax regimes like holding or headquarters regimes.

Low-tax jurisdictions/territories

Albania, Andorra, Armenia, Azerbaijan, Azores Islands (Portugal), Barbados, Bosnia and Herzegovina, Botswana, Bulgaria, Cambodia, Comoros, Cook Islands, Croatia, Cyprus, Czech Republic, Estonia, Georgia, Gibraltar, Hong Kong, Hungary, Iceland, Ireland, Kazakhstan, Kosovo, Kuwait, Kyrgyzstan, Labuan (Malaysia), Latvia, Lebanon, Liechtenstein, Lithuania, Luxembourg, Macau, Maldives, Malta, Mauritius, Moldova, Montenegro, Nauru, Netherlands, North Macedonia, Oman, Palau, Paraguay, Poland, Puerto Rico, Qatar, Romania, San Marino, Saudi Arabia, Serbia, Singapore, Slovenia, Switzerland, Taiwan, Thailand, Timor-Leste (East Timor), Turkmenistan, Ukraine, Uzbekistan, and Vietnam.

No-tax jurisdictions/territories

Anguilla, Aruba, Bahamas, Bahrain, Belize, Bermuda, British Virgin Islands, Brunei, Cayman Islands, Campione D’Italia (Italy), Curacao, Delaware (US), Florida (US), Granada, Guernsey, Isle of Man, Jersey, Liberia, Marshall Islands, Monaco, Montserrat, Nevada (US), Norfolk Island, Qeshm (Iran), Saint Helena and Tristan da Cunha, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, Seychelles, Sint Maarten, South Dakota (US), Texas (US), Trinidad and Tobago, Turks and Caicos Islands, United Arab Emirates, US Virgin Islands, Vanuatu, Washington (US), and Wyoming (US).