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El Salvador vs Barbados
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇸🇻 El Salvador
vs
🇧🇧 Barbados
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–30%
30% top; security improvements boosting economy
No change
12.5–28.5%
28.5% top; competitive Caribbean jurisdiction
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
13%
13% IVA stable
No change
17.5%
17.5% stable
No change

Corporate Tax Rate

Corporate Tax Rate
30%
30%; special economic zones
No change
5.5–9%
Tiered rate; Pillar Two compliance for large groups
No change

Capital Gains Tax

Capital Gains Tax
10%
10% maintained
No change
0%
No CGT — sustained advantage
No change

Social Security & Payroll

Social Security / Payroll
~15.5%
AFP system; pension adequacy improving
No change
~18.1%
NIS contributions; pension reform needed
No change
State, Regional & Local Taxes

🇸🇻 El SalvadorMunicipal Taxes

El Salvador's 262 municipalities levy local taxes including the impuesto municipal de activo empresarial (business assets tax at 0.1%–1% of net assets), commercial licence fees, and property registration fees. San Salvador municipality has the highest rates. The Ministry of Finance (MH) administers national taxes. El Salvador adopted Bitcoin as legal tender in 2021 (alongside USD), creating unique crypto tax considerations, though the Bitcoin Law was modified in 2025. The country has attracted significant nearshoring and blockchain sector investment.

🇧🇧 BarbadosParish Councils & Land Tax

Barbados's 11 parishes have parish councils that levy land tax at 0.1%–0.7% of site value. Barbados has long been a significant international business and financial centre, particularly for Canadian companies. Major tax reform in 2019 aligned Barbados with OECD BEPS standards. A tiered corporate tax rate structure was introduced. Barbados was removed from the EU tax haven blacklist following these reforms and maintains competitiveness as an IFC.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

El Salvador vs Barbados: Key Tax Differences (2026)

💰 Income Tax: 🇸🇻 El Salvador has a higher top income tax rate (0–30% vs 12.5–28.5%). 🇧🇧 Barbados is more favourable for high earners.

🛒 VAT/Sales Tax: Barbados has a higher consumption tax (13% vs 17.5%).

🏢 Corporate Tax: 🇧🇧 Barbados offers a lower corporate rate (9% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇧🇧 Barbados taxes investment gains at a lower rate (0% vs 10%), benefiting investors.

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All 🇸🇻 El Salvador comparisons →All 🇧🇧 Barbados comparisons →