Proving the origin of your funds to buy property in El Salvador
Who asks, what they ask for, and how to have it ready before it slows your closing.
The short answer
Expect to sign a sworn statement about where the money comes from and to back it with documents: statements that show the money, and the document that explains it. The bank, the notary, any Real Estate intermediary and the escrow agent all have to ask. It is the law, not distrust.
Who asks, and why
El Salvador’s anti-money-laundering law (Decreto 426), in force since October 2025, lists the obligated entities. For a property purchase they include banks, people who work as Real Estate intermediaries, and lawyers and notaries when they buy or sell property for a client or manage a client’s money. Each must identify the client and understand the origin of the funds, and keep the records for at least fifteen years.
Notaries also report to the Financial Investigation Unit (UIF) the transactions over US$10,000 that take place before them, under the UIF instructivo that stays in force until the new law’s regulations are issued.
What they will ask for
For foreign investors and Salvadorans living abroad, the Attorney General’s office set a risk-based framework in 2025. Individuals are placed by the amounts they expect to move each month: under US$10,000, between US$10,000 and US$25,000, or over US$25,000.
| Level | What is asked |
|---|---|
| Every client | A client profile form and a sworn statement (declaración jurada) |
| A | ID or passport, plus a Salvadoran tax number (NIT) |
| B | Adds proof of income or one year of tax returns |
| C | Adds a justification of the origin of the funds |
Sending the money from an active account in your own name in the United States, the European Union, the United Kingdom, Canada, Australia or El Salvador can place you in a lower-risk level.
Documents that usually answer the question
- Passport or DUI, and your NIT.
- Recent statements of the account the money is sent from.
- If the money comes from selling a property: the deed or the closing statement.
- If it comes from savings: pay stubs or tax returns.
- If it comes from a business: its financial statements.
- If it is an inheritance: the estate documents.
- If it is a gift: a letter from the person giving it, with their documents. Gifts from people other than a spouse or close family can be taxable income in El Salvador.
Buying through a company
Expect to identify the company’s beneficial owners. The new law sets the line at 25%, while the UIF instructivo that is still applied uses 10%, so be ready to name anyone who owns 10% or more. El Salvador has no public registry of beneficial owners, so the documents have to come from you.
If something cannot be documented
An obligated entity may decline to go ahead with a transaction when the client does not provide the information, although immigration status alone cannot be the reason for a refusal. The tax code also treats increases in wealth without a documented origin as income. It is always cheaper to document now than to explain later.
How we handle it
Our property file covers the origin of the funds at the start, alongside the title checks, so it never becomes the thing that stops the closing. How the escrow works and how to send the money from the US.
Frequently asked
Why does the notary ask where my money comes from?
Because notaries are obligated entities under El Salvador's anti-money-laundering law when they handle property sales, and they report transactions over US$10,000 to the UIF.
Do I need a Salvadoran tax number (NIT) to buy?
In practice, yes: the NIT is part of the basic identification that is asked of every client, and it is normally obtained before closing.
What if my money comes from crypto?
Keep the records of the exchange or provider where you converted it and of the account the dollars were sent from. Statements from a provider registered with the CNAD are easier to document.
Sources
- Anti-money-laundering law, Decreto 426 (2025): www.jurisprudencia.gob.sv
- UIF, frequently asked questions: www.uif.gob.sv
- UIF instructivo: www.uif.gob.sv
- Attorney General, Acuerdo 096 (2025): client risk levels: www.jurisprudencia.gob.sv
- Supreme Court, Acuerdo 7-P (2025): notarial records: www.jurisprudencia.gob.sv
- GAFILAT mutual evaluation of El Salvador (2024): biblioteca.gafilat.org
General information, not legal advice. The regulations of the new law were pending on the date of this guide; thresholds may change when they are issued.
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