Why I WON’T Get El Salvador’s $1 Million "Freedom" Passport

Summary

The video provides an in-depth look at El Salvador's residency and citizenship options, focusing on the Rentista, Pensioner, and Business Person visas. It highlights the requirements for each, such as proving passive income or making business investments. The process for acquiring citizenship by naturalization is discussed, with different timeframes for residents from Spain or Latin America versus other countries. The video also touches on the benefits of El Salvador's Bitcoin-friendly policies and tax exemptions, as well as the pros and cons of obtaining second citizenship. Overall, it provides a detailed guide for those considering relocating or investing in El Salvador.

Takeaways

• 😀 El Salvador offers various residency options, including the Rentista and Pensioner visas for those with passive income.
• 😀 Rentista residency requires showing a monthly foreign income equivalent to at least $1,500 (4 minimum Salvadorian wages).
• 😀 The Pensioner visa requires proof of a monthly pension of at least $1,100 (3 minimum Salvadorian wages) from a foreign source.
• 😀 You do not need to remit your passive income into El Salvador to qualify for residency, but you cannot engage in paid work.
• 😀 Entrepreneurs can apply for business person residency with a minimum capital investment of $2,000 and active participation in a company.
• 😀 For citizenship by naturalization, those from Spain or Latin American countries can apply after 1 year of residency, while others must wait 5 years.
• 😀 El Salvador allows dual citizenship, so you don’t need to renounce your original passport, but some countries have restrictions on this.
• 😀 Naturalized citizens who spend more than 5 years outside of El Salvador risk losing their citizenship, though this may not always be enforced.
• 😀 El Salvador does not tax foreign income, which can make it attractive for individuals with income from sources like Bitcoin.
• 😀 While El Salvador is an emerging country with a growing Bitcoin community, it currently lacks some of the services found in other Latin American countries.
• 😀 The process of acquiring citizenship by naturalization requires a time commitment of at least 8 months per year for 5 years unless you're from a Latin American country or Spain.
• 😀 The speaker emphasizes the importance of having multiple passports for safety and flexibility in today’s unpredictable global environment, offering personalized services to clients interested in obtaining multiple citizenships.

Q & A

What are the primary residency options available for foreigners in El Salvador?

There are two primary residency options: the Rentista and the Pensioner options. The Rentista option requires proof of a monthly passive income of at least $1,500, while the Pensioner option requires a monthly pension of at least $1,100.

Is it necessary to remit income into El Salvador to qualify for residency?

No, you do not need to remit your income into El Salvador to qualify for residency. However, you are not allowed to perform any paid work activities in the country.

What is the minimum investment required for the Business Person Residency option?

The minimum investment required for the Business Person Residency is $2,000. You must also be a shareholder or a member of the board of a company.

How long does it take to apply for citizenship by naturalization in El Salvador?

If you are from Spain or a Latin American country, you can apply for citizenship by naturalization after one year of residency. If you are from another country, you must have been a resident for at least five years.

Can El Salvador residents hold dual citizenship?

Yes, El Salvador allows dual citizenship, meaning you do not have to renounce your current passport.

How does El Salvador treat capital gains from Bitcoin?

El Salvador does not tax capital gains from Bitcoin, making it an attractive place for cryptocurrency investors. However, U.S. citizens will still have to pay taxes on those gains to the U.S. government.

What is the income tax policy in El Salvador for foreigners?

El Salvador only taxes income that is earned from within the country. Income earned from foreign sources is not taxed.

What are the residency requirements for someone applying for citizenship by naturalization who is not from Spain or a Latin American country?

For individuals not from Spain or Latin America, they must have been a resident of El Salvador for at least five years before they can apply for citizenship by naturalization.

What is the biggest challenge for people applying for El Salvador's citizenship by naturalization?

The main challenge is the requirement to spend at least eight months per year in El Salvador for five years. This can be difficult for individuals with international businesses or commitments elsewhere.

What potential opportunity exists in El Salvador for those interested in business and investment?

El Salvador offers an attractive environment for entrepreneurs, especially those in the Bitcoin industry. The lower investment requirements for residency, such as the $2,000 minimum for business people, may appeal to many.