WorldTax CompareAll Comparisons

Germany vs El Salvador
Tax Rate Comparison

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

🇩🇪 Germany
vs
🇸🇻 El Salvador
Tax Year:

💰 Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
14–45%
Basic allowance ~€12,336; bracket creep relief
No change
0–30%
30% top; security improvements boosting economy
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
7–19%
Standard 19% unchanged
No change
13%
13% IVA stable
No change

Corporate Tax Rate

Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
-0.5pp vs 2025
30%
30%; special economic zones
No change

Capital Gains Tax

Capital Gains Tax
25%
Investment income reform proposals under review
No change
10%
10% maintained
No change

Social Security & Payroll

Social Security / Payroll
~41.5%
Health insurance rising; pension base up
+0.5pp vs 2025
~15.5%
AFP system; pension adequacy improving
No change
State, Regional & Local Taxes

🇩🇪 GermanyTrade Tax (Gewerbesteuer) & Church Tax

Germany's 16 Bundesländer apply federal income tax rates uniformly — no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

🇸🇻 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.

⚠️ 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.

Germany vs El Salvador: Key Tax Differences (2026)

💰 Income Tax: 🇩🇪 Germany has a higher top income tax rate (14–45% vs 0–30%). 🇸🇻 El Salvador is more favourable for high earners.

🛒 VAT/Sales Tax: Germany has a higher consumption tax (7–19% vs 13%).

🏢 Corporate Tax: 🇩🇪 Germany offers a lower corporate rate (29% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇸🇻 El Salvador taxes investment gains at a lower rate (10% vs 25%), benefiting investors.

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