El Salvador Will Not Collect Taxes on Migrants Returning to the Country

The Legislative Assembly of El Salvador unanimously approved a law this Thursday that exempts Salvadorans returning to the country from paying taxes, bringing in belongings worth up to US$100,000. According to the approved decree, if the goods exceed this amount, only the excess will be paid.

The Special Law on Benefits and Protection for the Diaspora and People in Human Mobility, which consists of 43 articles, also provides for tax exemptions of up to US$100,000 for goods and work tools.

The one-time benefits include the tax-free importation of two light vehicles, but they must not be older than eight years.

This legislation replaces the temporary law approved by the deputies in November 2023, which established a maximum exemption of US$70,000.

The law approved this Thursday also allows companies to reduce part of their income tax payments based on the number of returnees they hire.

The Ministry of Labor and Social Security must create a job registry for returned Salvadorans, so that companies interested in hiring them can register and apply for tax benefits.

The purpose, the deputies explained during the session, is for returnees to find employment that will facilitate their reintegration into the country. The benefits apply to Salvadorans who wish to return voluntarily or those deported from countries like the United States, which, since the arrival of President Donald Trump, has been promoting a series of raids to expel those who have entered the country illegally.