The Legislative Assembly of El Salvador has approved a bill to reduce the income tax on foreign investments and remittances from 30% to 0% with no actual cap on the amount.

In a post dated March 12, President Nayib Bukele shared the information on the social media site X:

“The income tax law was modified by Congress, lowering the rate from 30% to 0% for foreign investments and money transfers.”

The legislative assembly of El Salvador, Asamblea Legislativa, announced in a separate X post that the legislation was adopted with 69 votes out of, presumably, 84 (assuming no votes were abstained from or absented).

“With 69 votes in favor, we amend the Income Tax Law to exempt any foreign capital, regardless of amount, from this tax when it is brought into the country for family remittances or other purposes.”

Following Bukele’s election in 2019, El Salvador has seen significant transformation. He said that the Bitcoin BTC tickers were down $73,061 in 2021.

legal tender across the nation and acquired 200 BTC for its reserves. El Salvador’s economy has grown steadily in the years that followed. The World Data Bank estimates that its gross domestic output was $24.9 billion in 2019. It will hit $32.4 billion by 2022. Additionally, estimates point to 2.8% growth in 2023.

Since Bitcoin surpassed the 72,000 mark the week of March 10, El Salvador has made $85 million from its 2021 buy, according to a new report from Cointelegraph.

The most recent change to the tax system was made after El Salvador eliminated all taxes associated with technological innovation in April of 2023. A bill that virtually eliminated income, property, and capital gains taxes on technological advances, including “software programming, coding, apps, and AI development, as well as computing and communications hardware manufacturing,” was passed by the nation, as Cointelegraph noted at the time.