El Salvador launched the World’s first bitcoin citizenship by investment program in Dec 7, 2023. The government of El Salvador and Tether, announced the launch of the “Adopting El Salvador Freedom Visa Program”. Later it was officially branded as Adopting El Salvador Program is a fast track to the Salvadoran passport for investors or families set at the cost of 1,000,000 USD in BTC or USDt. The investment will contribute to El Salvador’s economic renaissance program to fuel the country’s growth.

Adopting El Salvador

The program primarily designed for high-net-worth individuals or investors interested in contributing to building Bitcoin Country. Potential applicants would need to meet the financial threshold specified by the government, set at $1 million in Bitcoin or USDt. Successful applicants are eligible for a Salvadoran passport.

Limits

Limited to 1000 participants per year, this Freedom Passport program is not just an investment; it’s a commitment to building the country of the future.

Bitcoin Legal Tender

El Salvador, Bitcoin holds the unique status of being recognized as legal tender since 2021. El Salvador has taken significant strides towards integrating approximately 70 percent of its population, who previously lacked bank accounts, into the formal economy.

Eligibility

To qualify for economic citizenship of El Salvador applicant must meet the following criteria:

• The main applicant must be a minimum of 18 years of age
• Have no criminal record or outstanding international warrants
• Make a qualifying investment of a minimum of either $1 million in Bitcoin or USDT
• Satisfy government due diligence background checks
• Demonstrate lawful source of funds and good character
• It is important to note that the program is limited to 1,000 applicants annually.

Application Process

The process requires a non-refundable $999 USD deposit in Bitcoin or USDt, and all accepted applicants must pass KYC. 

The application process for the Adopting El Salvador Freedom Passport is a straightforward procedure that requires just a few minutes to complete the initial form. Once submitted, the processing time can vary, with approvals typically taking up to 6 weeks. During this period, the provided information is carefully reviewed and verified to ensure compliance with the program’s requirements. While the initial application is swift, the processing duration allows for meticulous assessment, ensuring that all necessary steps are followed before the exclusive Freedom Passport is granted.

Tax Free Status

El Salvador has implemented several tax exemptions related to bitcoin to attract fintech and blockchain companies. 

• Capital gains: For foreign investors and residents, profits from selling or trading bitcoin are not subject to capital gains tax. This applies as long as the gains are not derived from regular, business-related trading activity.
• Zero income tax on bitcoin: Foreign investors are not subject to income tax on bitcoin holdings.
• Incentives for businesses: Licensed digital asset service providers are exempt from corporate income tax, capital gains tax, and Value Added Tax (VAT) on digital asset transactions.
• Bitcoin City: The planned geothermal-powered metropolis, Bitcoin City, is designed to have zero income, property, or capital gains taxes. 

Family Members

The main applicant can include one spouse and all children under the age of 18.