El Salvador's Icing On Bitcoin Cake - Foreign Investors Won't Pay Tax On Profit

El Salvador introduced bitcoin as legal tender on Tuesday alongside the dollar, which has been the official currency for 20 years.

El Salvador will exempt foreign investors from taxes on profits on bitcoin speculation in the country, a government adviser said Friday, after it became the first to recognize the cryptocurrency as legal tender. "If a person has assets in bitcoin and makes high profits, there will be no tax. This (is done) obviously to encourage foreign investment," Javier Argueta, legal adviser to President Nayib Bukele, told AFP. "There will be no taxes to pay on either the capital increase or the income." El Salvador introduced bitcoin as legal tender on Tuesday alongside the dollar, which has been the official currency for 20 years.