El Salvador Eliminates Income Tax on International Investments and Money Transfers

According to CoinDesk, El Salvador has removed income tax on money coming into the country from abroad. President Nayib Bukele announced that Congress has reformed the nation's income tax law for international investments and money transfers, reducing the rate from 30% to 0%. El Salvador was the first country to make bitcoin legal tender and has been accumulating the cryptocurrency since September 2021. The Central American nation's treasury currently holds around $84 million in unrealized profit on its bitcoin holdings. This tax reform is part of El Salvador's efforts to position itself as an attractive destination for foreign investment and bitcoin enthusiasts. In December, the country introduced a law granting citizenship to bitcoin investors who make a donation to the government. Billionaire investor Tim Draper recently praised El Salvador on the Web3 Deep Dive podcast, stating that the nation has become 'the most attractive country in the world to live in just because they embraced bitcoin.' Draper believes that within 30 or 40 years, El Salvador could transform from one of the poorest and most crime-ridden nations to one of the richest and most innovative countries in the world, thanks to its adoption of bitcoin.