What You Should Know About Banking In El Salvador?
El Salvador’s banking system has undergone a significant transformation, which has contributed to increasing its competitiveness and attracting global attention from foreign and offshore entities. The main regulator is the Superintendencia del Sistema Financiero (SSF), which is responsible for protecting customer rights, ensuring compliance with financial reporting rules by all participants, and preventing financial crimes.
Processing Time
2 – 3 Weeks
Average Opening timeline
Initial Share Capital
USD$ 2000
Minimum required capital
Bank Fees
4$ – 11$
Per Transaction
Before opening a corporate bank account in El Salvador, the following factors should be considered:
Control by the SSF.
The SSF applies a risk-based approach, which involves analyzing indicators of liquidity, stability, and capital adequacy.
Compliance with AML/KYC requirements.
The regulatory system in El Salvador is recognized by international financial institutions as reliable, thanks to the transparency of companies’ operations, their compliance with KYC requirements, and timely monitoring of high-risk transactions.
Integration of Bitcoin into banking.
No other country has such a rare combination of strict regulation, high standards, and unique integration of digital assets. Starting in 2021, companies will have the right to receive payments or settle accounts with counterparties in BTC.
State support for the blockchain industry.
The government is making significant efforts to attract as many investors, startups, Web3 companies, and fintech platforms as possible, so it is developing state blockchain services, digitizing customer identification processes, and simplifying international payments.
El Salvador’s economy allows the company to take advantage of its strategic location in Central America and carry out
- Company registration in El Salvador takes 1-8 business days, and opening an account takes 4 weeks (verification is required).
- You can only start a company if you have $2,000 in start-up capital.
- Pick between a 25%-30% corporate tax or use the territorial tax system.
There are more than 138 multinational companies operating in El Salvador, mainly in IT, outsourcing, agribusiness, energy, tourism, and international trade.
El Salvador has “open access” to the US market thanks to CAFTA-DR agreements, while FTAs with South Korea and Taiwan open up access to Asian markets for international companies.
Benefits of Opening a Bank Account in El Salvador
International businesses consider offshore bank account opening in El Salvador as a privilege due to:
Adaptation of banking services to the needs of international business.
Banks have the right to work with non-resident companies and offshore structures whose main activities take place outside the country.
Dollarization of the economy.
The US dollar is the official currency of the country, and the main exporter is also the US, so it is simple and easy to conduct international transactions here.
Data confidentiality.
Banks must adhere to banking secrecy and protect company owner data from public access.
Commitment to innovative business.
The government is doing all it can to encourage the use of digital assets and fintech in traditional finance. Banks are happy to work with licensed blockchain platforms, crypto wallets, processing services, and more.
The country’s reputation is recognized internationally.
El Salvador is not listed on the blacklists or grey lists of the EC, OECD, FATF, or tax jurisdictions.
Accounts in multiple currencies (USD, BTC, EUR).
Multi-currency support gives companies flexibility, the ability to optimize payment flows, and reduce conversion costs. The combination of USD and BTC accounts allows you to build hybrid business models, conduct B2B and B2C transactions, and pay contractors from any country.
Special tax breaks.
The territorial taxation system means that there is no corporate tax on income earned outside the country. Special tax conditions have been introduced for IT companies (software development, cybersecurity, ML) — exemption from income tax for up to 15 years, and capital losses can be carried forward for 5 years.
Access to Latin American markets.
It is especially important for exporters, e-commerce, R&D centers, and fintech projects, as it facilitates interaction with neighboring countries and provides an opportunity to expand the customer base.
Remote account management.
Banks offer their customers fully digital services, online banking with multi-level access settings, document verification via scanned copies (notarized), and more.
General Requirements for Opening a Bank Account in El Salvador
Required Documents for Account Opening
When opening Offshore Corporate Bank Accounts in El Salvador, you need to collect a fairly detailed list of documents, from founding data to financial reports and a business plan, as well as:
- Certificate of incorporation in the relevant commercial register, articles of association.
- Tax identification number (NIT).
- Passport of the current representative, if a resident of El Salvador – identity card (DUI), identification code.
- Sample signature of the director/representative.
- Document confirming the representative’s authority – power of attorney (notarized or apostilled), decision of the board of directors.
- Confirmation of legal address in El Salvador (utility bills, lease agreements, etc.).
- List of shareholders with their personal data (passport, TIN), UBO data.
- Financial reports, tax returns.
- Description of business activities for 3-5 years (for new companies).
- Confirmation of source of income, initial capital.
- Licenses, certificates.
Requirements for Opening an Offshore Corporate Account
When opening a corporate bank account in El Salvador, it is important to comply with the requirements of the local financial regulator, including:
- Legal registration of the company in accordance with the law, “Certification of Good Standing” – confirmation of legal status and absence of problems in operations.
Initial capital contribution – minimum $2,000 and confirmation of its source (bank recommendations, references). - Passing AML/KYC.
- Physical presence of a representative, notarized power of attorney.
- Registration with the tax authorities and availability of a tax identification number (NIT).
- For offshore and new companies, it is necessary to submit a description of the business model, a description of future income and operations.
- For crypto companies, it is especially important to comply with international compliance standards, so managers and beneficiaries must undergo KYC/AML and due diligence. In addition, they must have a license (DASP).
It is worth considering:
- Documents issued abroad must be translated, notarized, and have an apostille;
- When opening the first account, the legal representative must be physically present in the jurisdiction.
- Recommendations from other financial institutions can speed up the document review process. Usually, an account can be opened in 2-3 weeks, depending on the degree of risk of the company’s activities.
Types of Corporate Accounts available in El Salvador
The Salvadoran banking system offers a choice of several types of corporate accounts depending on business needs, remote service capabilities, investment activities, and distribution of operational activities, namely:
- An offshore corporate account is convenient for companies operating outside El Salvador, as it reduces tax costs while allowing international transfers (SWIFT).
- An international business account for working with foreign markets and making cross-border payments. This type of El Salvador bank account is particularly convenient for exporters and IT platforms.
- Multicurrency accounts in USD/EUR are necessary for settlements with Europe and the US.
- A business account for crypto companies allows you to work with cryptocurrencies, receive payments, and conduct transactions between crypto wallets.
- Merchant accounts for e-commerce with connection to POS, terminals, acceptance of online payments, and cooperation with marketplace platforms
Types of corporate accounts in El Salvador
| Account type | Base currency | Crypto support | Best used |
|---|---|---|---|
| Offshore | USD | Partially | Holding companies, international corporations |
| For international business | USD, EUR | No | Export/import, logistics |
| Multi-currency | USD,EUR | No | European and American companies |
| For crypto companies | USD | Yes | Crypto projects, Web projects |
| Merchant accounts | USD | No | Online store, marketplaces |
Step-by-Step Process to Open a Corporate Account
When opening a bank account in El Salvador, you must complete several steps to comply with local and international standards, namely:
Stage 1. Assessment of the company profile
At the initial stage, it is necessary to predict the volume and nature of operations, the type of business, and the possibility of using digital assets.
Stage 2. Preparation of documents.
When applying to banking institutions, you must provide:
- Corporate documents.
- Documents for identifying beneficiaries, representatives, and managers.
- Business plan.
- Licenses, permits.
Stage 3. Application submission.
When filling out the Bank Application Form, please note that the bank will verify the accuracy of the information provided, the source of funds, and may request tax information.
Stage 4. Due Diligence Check.
Strict regulations require verification of the company’s structure, UBO, origin of funds, existing partners and counterparties, and compliance with the AML profile.
Step 5. Approval of opening a bank account.
After completing the verification, the bank issues a notification of account opening, a service agreement, information on the minimum deposit, and IBAN/Swift.
Minimum Deposit Requirements
The mandatory payment for opening a bank account in El Salvador is 5% of the minimum initial capital. Depending on the type of account, risk level, selected currency, and company profile, banks set a minimum deposit amount:
- for corporate accounts from $500 to $10,000 (for high-risk businesses);
- for international businesses from $300 to $2,500;
- multi-currency accounts from $500 to $1,000;
- for crypto companies from $2,000 to $20,000;
- merchant accounts from $500 to $3,000.
Banks also require a minimum balance to be maintained, and if the balance falls below this amount, fees and transaction restrictions may be imposed. At the same time, privacy and banking secrecy are guaranteed regardless of the type of account.
Account Activation
To activate El Salvador bank account for foreigners you need to:
- Make a minimum deposit (depending on the bank’s requirements).
- Sign a remote service agreement.
- Activate online banking.
- Obtain corporate cards (if necessary).
After activation, the following becomes possible:
- Swift implementation.
- Connect merchant gateway.
- Integrate the system with banking systems for taxation payments, report generation, etc.
- Accept BTC.
Banking Fees Comparison: EL Salvador vs Other Offshore Jurisdictions
When searching for the best conditions for opening an account, placing savings, and making payments, it is worth comparing several jurisdictions. It should be noted that opening a bank account in El Salvador has a number of advantages over other offshore jurisdictions:
Banking Fees Comparison: EL Salvador vs Other Offshore Jurisdictions
Jurisdiction | Minimum deposit | Opening period | Remote maintenance | Privacy | The use of cryptocurrencies |
|---|---|---|---|---|---|
| El Salvador | $500 | 2-3 weeks | + | high | + (BTC) |
| Panama | $100-500 | 4-6 weeks | + | high | + (there are restrictions) |
| Belize | $500-$1000 | 3-5 weeks | + (there are restrictions) | high | – |
| Seychelles | $10 000 + | 6-8 weeks | + | high | – |
| Mauritius | $5000 – $15000 | 5-7 weeks | + | good | – |
Packages of Services for Opening a Corporate Offshore Account in El Salvador
In any case, opening a bank account in El Salvador is a rather complicated process, as it requires knowledge of the legal nuances of the jurisdiction, due diligence rules, and interaction with government agencies. One mistake, entering incorrect data, choosing a currency that banks do not work with, or providing an incomplete set of documents will delay the entire process.
Gofaizen&Sherle has developed several service packages that will help companies open a corporate account and start operating in a timely manner without organizational hassles:
Why you should use Corporate Services by Gofaizen & Sherle
When opening a corporate account, it is quite difficult to immediately navigate the peculiarities of Salvadoran banking, which can subsequently lead to refusal of service, loss of time and resources. That is why support from Gofaizen&Sherle experts is a guaranteed result and an opportunity to take advantage of such benefits as:
- Professional expertise and many years of experience in the Salvadoran market, understanding of the local banking system.
- Local presence of the team, which allows you to speed up all processes and minimize the risks of refusal.
- Preliminary assessment, highlighting “weak” areas, and honest evaluation of the chances for further interaction with financial institutions.
- Confidentiality, a non-disclosure agreement protects all data provided by the company.
- In-depth expertise in business consulting for fintech projects, crypto companies, exchanges, and investment funds, which helps not only in opening a company but also in obtaining all the necessary licenses.
- Support throughout the entire process, from drawing up a business plan to preparing AML/CFT procedures.
- Cooperation with complex ownership structures: trusts, foundations, multi-level holdings.
- Assistance with ongoing maintenance: responding to bank inquiries, changing beneficiaries, co-owners’ shares, and more.
Thanks to professional advice from Gofaizen&Sherle, the company not only receives an active corporate account, but also integrates its business into the region’s financial ecosystem.
FAQ About Bank Account Opening in El Salvador
How can a foreigner open a bank account in El Salvador?
The country’s legislation and FATF standards require full customer identification. Non-residents must provide notarized documents. In addition, each financial institution may request additional clarifications, receipts, contracts, etc. Applications may be completed remotely.
Who can have access to a company bank account in El Salvador?
Access to the account and disposal of funds is granted to authorized persons specified in the resolution or power of attorney. Global access with multi-signatures and role distribution (view only, account management, etc.) is specified in the agreement.
Is El Salvador crypto-friendly for business accounts?
Доступ до рахунку та розпорядження котами мають уповноважені особи, які зазначені у наданій резолюції або у довіреності. Global доступ з мультипідписами, розподілом ролей (лише огляд, керування рахунком та інше) зазначається у договорі.
Is El Salvador crypto-friendly for business accounts?
Yes, it is a progressive jurisdiction that defines Bitcoin as a legal means of payment, thereby attracting the attention of numerous startups and crypto investors.
What is the timeline for account opening?
You can get an IBAN fairly quickly—in 2-4 weeks. Most of the time is spent verifying all managers, UBOs, and checking the validity of documents.
