El Salvador has introduced a citizenship‑by‑investment program that accepts cryptocurrency as the sole form of contribution. Known as the El Salvador Freedom Passport, the scheme allows foreign investors to obtain a Salvadoran passport by transferring digital assets—primarily Bitcoin (BTC) or the stablecoin USDT—directly to a government‑controlled wallet.
Core elements of the Freedom Passport program
| Feature | Detail |
|---|---|
| Minimum investment | $1 000 000 in Bitcoin or USDT (non‑refundable) |
| Processing time | 6–8 weeks from submission to passport issuance |
| Visa‑free access | Over 130 countries, including the Schengen Area, Japan, Singapore, South Korea, Hong Kong, Ireland, Russia and most Latin American states |
| Tax treatment | 0 % capital‑gains tax on Bitcoin transactions for citizens |
| Residency requirement | None; dual citizenship is permitted |
| Application fee | $1 000 per applicant (plus legal and translation costs) |
| Initial transfer | Only $1 000 of the $1 000 000 investment is required to start the review; the remainder is transferred after approval |
Applicant eligibility
- Age ≥ 18 years
- No serious criminal record
- Not listed on international sanctions lists
- Ability to demonstrate a legal source of funds (crypto wallet)
Family members eligible for inclusion are a spouse and children under 18.
Investment mechanics
- The investor sends the required cryptocurrency directly to the Salvadoran government’s wallet.
- Transfers are processed only after the application is approved.
- Stablecoins (USDT) may be used to mitigate Bitcoin price volatility.
- Example: at a Bitcoin price of $80 600, the $1 million threshold equals roughly 12.4 BTC. Applicants are advised to keep a 5–10 % reserve above the minimum to cover exchange‑rate fluctuations.
Costs beyond the investment
- Government fee: $1 000 per applicant
- Legal support, document translation, notarization: variable, paid by the applicant
- Bank and crypto‑exchange fees: typically 0.5–2 % of the transfer amount, depending on the platform
If an applicant lacks a crypto wallet, licensed service providers can assist with wallet creation and the full legal submission process.
Benefits of a Salvadoran passport
- Travel freedom: Visa‑free entry to more than 130 destinations, with ongoing expansion of travel agreements.
- No relocation obligation: Citizenship does not require physical residence or regular visits.
- Dual citizenship: El Salvador permits multiple nationalities, allowing investors to retain their original passports.
- Banking access: Citizenship grants entry to the Salvadoran banking system and, indirectly, to international financial services on favorable terms.
Context
The program builds on El Salvador’s 2021 Bitcoin Law, which mandated acceptance of Bitcoin alongside the US dollar for all businesses. Since then, the Treasury has purchased one Bitcoin daily for the national budget, and in 2023 the government formalized the cryptocurrency‑based citizenship pathway. The Freedom Passport is currently the only national program worldwide that accepts crypto as the exclusive investment vehicle for citizenship.
Source article: apexcapital.one
