Sending money from the United States to buy property in El Salvador

The short answer

Wire it from an account in your own name to an escrow account, never to the seller or a broker, and only after the property file is done. Confirm the account details by phone before you send. Have the origin of the funds documented. The Salvadoran bank reports the transfer as a matter of routine, and El Salvador does not charge income tax on money you bring in.

Step by step

1. The property file comes first. No deposit before the registry, the liens and the seller have been checked. Due diligence from $800 + VAT + expenses.
2. Get the escrow account details from the escrow agent itself. Not from the seller, and not from a broker.
3. Confirm them by phone, with a number you already had, not one that came in the same email. If the instructions ever “change”, stop and call.
4. Prepare the origin of the funds. Send from an account in your own name and have the documents that explain the money ready. What they will ask for.
5. Send the wire and keep the transfer confirmation from your bank.
6. Get written confirmation of receipt from the escrow agent before anything is signed.

Why the phone call matters

Wire fraud in Real Estate is common and it is the same trick every time: an email that looks like it comes from the title or escrow company, with new wire instructions. The FBI’s Internet Crime Complaint Center recorded 12,368 Real Estate fraud complaints and US$275.1 million in losses in 2025, and US$3.05 billion lost to business email compromise. Money wired to the wrong account is very hard to recover.

What gets reported, and by whom

• The bank in El Salvador reports international electronic transfers of US$1,000 or more to the Financial Investigation Unit (UIF) every month. It is routine and it is the bank’s job: the UIF says the customer who receives a wire does not file anything.
• The notary reports to the UIF the transactions over US$10,000 that take place before them.
• Cash is different: carrying US$15,000 or more across the border into El Salvador must be declared. Wire the money; do not carry it.

On the US side

If you open a bank account in El Salvador, a US person must file an FBAR when the combined value of their foreign financial accounts exceeds US$10,000 at any time during the year. Whether an escrow account held by a third party counts is something to confirm with your US tax adviser; we found no official guidance on it.

Taxes in El Salvador

Money you bring from abroad is not subject to Salvadoran income tax. The purchase itself carries the transfer tax: 3% on the value above US$28,571.43, paid by the buyer. Calculate your closing costs.

Frequently asked

Can I send the money directly to the seller?

You can, and most purchases in El Salvador are paid that way at signing, weeks before the Registry records anything. That gap is the risk: an escrow account keeps the money until the transfer is registered in your name.

Do I have to report the transfer in El Salvador?

No. The receiving bank reports international transfers of US$1,000 or more to the UIF as routine. You provide documents on the origin of the funds when the bank, the notary or the escrow agent asks.

Can I bring the money in cash?

It is not advisable. Carrying US$15,000 or more in cash across the border must be declared, and cash is harder to document as the origin of the funds. A wire leaves a record.

Sources

• FBI Internet Crime Complaint Center, 2025 report: www.ic3.gov
• FinCEN, Report of Foreign Bank and Financial Accounts (FBAR): www.fincen.gov
• UIF, frequently asked questions: www.uif.gob.sv
• UIF instructivo (reporting of transfers and notaries): www.uif.gob.sv
• Anti-money-laundering law, Decreto 426 (2025): www.jurisprudencia.gob.sv

General information, not legal or tax advice.