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Regulation and Policy

El Salvador Officially Removes Taxes on Technological Innovations

El Salvador Officially Removes Taxes on Technological Innovations

Tech innovations in El Salvador will be exempted from taxes which could further boost cryptocurrency adoption in the country.

El Salvador made history as the first country to recognize Bitcoin as a legal tender. President Nayib Bukele viewed it as a potential solution to hyperinflation and the nation’s dependence on the US dollar.

To support technological development, Bukele sent a bill to Congress on April 1, 2023, to eliminate taxes on innovation such as software programming, coding, apps, AI development, and hardware manufacturing.

This bill accompanies the establishment of the National Bitcoin Office, which aims to position El Salvador as a technological and economic powerhouse.


READ MORE: Regulatory Hurdles Force Bittrex to Exit US Market – Here is the Deadline


President Bukele’s efforts to rebuild the nation also include promoting tourism, countering terrorism, and creating regional business hubs.

Recently, El Salvador passed legislation that provides the legal framework for Volcano Bonds, a type of Bitcoin-backed bond named after Bitcoin City’s location.

The city is set to become a renewable crypto-mining hub powered by hydrothermal energy from the nearby Conchagua volcano.

Author
Alexander Stefanov - Editor-in-Chief at Coinspress
Alexander Stefanov

Reporter at CoinsPress

Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.

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