El Salvador has been making waves recently, starting with its historic decision in September 2021 to make Bitcoin a legal tender. Now, the country has taken another bold move by eliminating all income, property, and capital gains taxes on technology innovations. This is part of President Nayib Bukele‘s efforts to expedite technological development, attract international investment, and position the country as a technological and economic power.
Eliminating Taxes on Technology Innovations
President Nayib Bukele’s decision to remove taxes on technology innovations is a strategic move to encourage both local entrepreneurs and foreign investors to set up businesses in El Salvador. This initiative is expected to pave the way for a thriving tech industry in the country, as entrepreneurs will have access to more capital to build innovative solutions, and investors will have greater incentives to invest in El Salvador.
Establishing the National Bitcoin Office
In addition to removing taxes on technology innovations, President Nayib Bukele also established the National Bitcoin Office (ONBTC), which will work with Bitcoin entrepreneurs and companies to conduct joint initiatives. This move is in line with the country’s goal of becoming a hub for technological innovation and entrepreneurship. The Bitcoin Association of El Salvador has welcomed the move, stating that it will further boost the country’s attractiveness to Bitcoin entrepreneurs and investors.
Download the English translation PDF of the new law in El Salvador for the promotion of innovation and manufacturing of technologieshttps://t.co/AR8IYNKvKz pic.twitter.com/i15GmzFBHN
— The Bitcoin Office (@bitcoinofficesv) April 1, 2023
Promoting Tourism
President Nayib Bukele is also promoting tourism to boost the country’s economy. He has been working with private companies to build beach resorts and theme parks to attract international visitors. The country’s natural beauty and rich cultural heritage make it an attractive destination for tourists, and the government’s efforts are expected to further boost the tourism industry.
Countering Terrorism
El Salvador has a long history of gang violence and crime, which has impacted the country’s economy and security. President Nayib Bukele has been working to tackle this issue, and his administration has implemented several measures to address it, including deploying the military to high-crime areas. By improving the country’s security situation, the government hopes to attract more investors and entrepreneurs.
Building Regional Business Hubs
President Nayib Bukele is also focused on building regional business hubs to attract foreign investment. The country recently passed legislation to provide the legal framework for Bitcoin-backed bonds called Volcano Bonds. These bonds are named after the location of Bitcoin City, which is set to become a renewable crypto-mining hub powered by hydrothermal energy from the nearby Conchagua volcano. These regional business hubs are expected to attract more foreign investors and entrepreneurs to El Salvador.
El Salvador’s decision to remove taxes on technology innovations is a significant step towards its goal of becoming a technological and economic power. Along with the establishment of the National Bitcoin Office, the promotion of tourism, the efforts to counter terrorism, and the building of regional business hubs, El Salvador is positioning itself as an attractive destination for entrepreneurs and investors. These efforts are expected to have a positive impact on the country’s economy and overall development.
