Guide to Purchasing Real Estate in El Salvador as a Foreigner

This comprehensive guide provides information on buying property in El Salvador as a foreigner, including costs, timelines, and legal considerations.

Real Estate Costs in El Salvador

1. Property Prices: Prices vary significantly based on location, type, and size. Beachfront homes can range from $100,000 to over a million dollars, while properties in less tourist-heavy areas often run from $50,000 to $150,000.

2. Taxes and Fees

   • Property Tax: El Salvador does not impose annual property taxes. Instead, a one-time real estate transfer tax of 3% applies to properties valued over $28,571.
   • Real Estate Agent Fees: Agents typically charge between 3% to 6% commission.
   • Legal Fees: Legal fees range from $1,000 to $5,000, including due diligence, contract drafting, and title transfer.
   • Other Costs: Notary and registration fees can range from $500 to $1,000. Capital gains tax is 10%.

3. Financing Options

   • Mortgage Finance: Mortgage options are limited for foreigners. Most buyers opt for cash purchases.

Timeline for Purchasing Real Estate

The process, from property search to closing the deal, can take 30 to 90 days.

Key Legal Aspects

1. Foreigners can own property in El Salvador, with a few restrictions.
2. Due diligence is crucial to verify the property title and ownership history.
3. Property ownership doesn't grant residency, but it supports residency applications.

Additional Tips

• Research the local customs, laws, and area.
• Visit the property in person.
• Join expat communities for firsthand advice.

Read more about buying property in El Salvador at Vivo Latam.