Can US citizens buy property in El Salvador? Article 109, the NIT, powers of attorney and wiring funds

What does Article 109 say about foreigners and rural land?

Article 109 of the Constitution says rural real estate cannot be acquired by foreigners whose countries of origin do not give Salvadorans the same rights, except land for industrial establishments. The article extends the same rule to foreign companies and to certain Salvadoran companies described in Article 95. Urban property is outside this article.

Whether a property is rural or urban is a legal classification, not a matter of how remote it looks. Article 5 of the transfer tax law requires the notary to state whether the property is urbano or rústico in the transfer documents. Ask your Salvadoran attorney early how the parcel is classified and how Article 109 applies to a US buyer and to any company you plan to buy through.

Asamblea Legislativa: Constitution of El Salvador, Article 109

How does a foreigner get a NIT?

The NIT (Número de Identificación Tributaria) is the Salvadoran tax number, and Invest in El Salvador lists getting one as step one for a foreign buyer. You present your original passport or Salvadoran resident card with a copy at a Ministerio de Hacienda office and complete the forms the officer provides. Invest in El Salvador says a first NIT costs US$2.00, takes about 30 minutes once the documents are accepted, and is issued immediately.

An agent can apply for you. The agent needs a power of attorney authorizing tax procedures; if it was issued in English it must be translated into Spanish and certified or apostilled, and if issued at a Salvadoran consulate the consul’s signature must be authenticated by the Ministry of Foreign Affairs in El Salvador. The agent also brings a certified copy of your passport, a letter of authorization, and form F-210V4.

• Original passport or resident card and a copy
• Through an agent: power of attorney for tax procedures
• Certified passport copy and authorization letter
• Form F-210V4 signed by the agent
• Fee: US$2.00 for a first NIT (Invest in El Salvador)

Invest in El Salvador: Steps for a Foreigner to Purchase Property

How do you sign from the US?

There are two common routes for a poder especial (special power of attorney) that lets someone sign the deed for you. The first is a Salvadoran consulate: Article 5 of the Ley de Notariado lets heads of diplomatic missions, consuls general, consuls and vice consuls exercise notarial functions in the countries where they are accredited. Invest in El Salvador notes that a consul’s signature must then be authenticated by the Ministry of Foreign Affairs in El Salvador.

The second route is a US notary, followed by an apostille and a Spanish translation. Either way, ask the Salvadoran notary who will authorize the deed to draft the Spanish text first. A power that does not name the property, the price range, the authority to pay taxes and sign the deed, or the authority to deal with the registry may be rejected at signing.

• Identify the specific property by matrícula
• Authority to sign the promesa and the escritura
• Authority to pay taxes and fees and obtain solvencias
• Authority to present and correct filings at the CNR

Ley de Notariado (D.L. 218, 1962)

Apostille: are both countries in the Hague Convention?

Yes. The Hague Conference’s status table shows El Salvador acceded to the Apostille Convention on 14 September 1995, in force from 31 May 1996, and the United States acceded on 24 December 1980, in force from 15 October 1981. An apostille from the US replaces the older chain of consular legalization for documents used in El Salvador.

The US has no single apostille office. The Hague Conference lists the US Department of State’s Office of Authentications for documents issued by federal agencies, and designated authorities in each state, generally the Secretary of State, for state documents. A power of attorney signed before a US notary is a state-level document, so it goes to the state where the notary is commissioned.

HCCH: Apostille Convention status table

Does the power of attorney need a Spanish translation?

Yes. Article 32 of the Ley de Notariado requires deeds to be written in Spanish, with an interpreter for a party who does not speak it, and Invest in El Salvador says an English power of attorney must be translated into Spanish. Article 24 of the Ley del Ejercicio Notarial de la Jurisdicción Voluntaria sets the procedure: the interested person goes to a notary, who appoints and swears in an interpreter as expert, and then signs and seals each page of the translated document.

Apostille first, then translate, so the translation covers the apostille certificate too. Ask the notary in El Salvador which order and which translator they will accept before you start.

Ley del Ejercicio Notarial de la Jurisdicción Voluntaria y de Otras Diligencias (D.L. 1073, 1982)

Moving the money: dollars, wires and source-of-funds questions

There is no currency conversion. The Banco Central de Reserva cites the Ley de Integración Monetaria (Legislative Decree 201 of 30 November 2000), whose Article 3 gives the US dollar unrestricted legal tender status for paying obligations in El Salvador. Prices, taxes and fees are stated and paid in dollars.

Expect questions about where the money came from. The Ley Contra el Lavado de Dinero y de Activos lists real estate transactions and construction companies among the activities subject to the law, alongside banks. Your US bank and the receiving Salvadoran bank may both ask for documents. The deed states the price and payment method, so the wire details should match it. PropertyProof does not hold or transfer purchase funds.

• Bank statements showing the funds
• Closing statement if the money comes from a US home sale
• Gift letter if family is contributing
• Wire confirmations that match the payment method in the deed

Ley Contra el Lavado de Dinero y de Activos (D.L. 498, 1998)

What should a US buyer prepare before the trip?

Most delays come from documents that take weeks in the US: an apostille by mail, a translation, a bank’s compliance review. Start those as soon as you have a signed promesa. Keep scanned copies of everything in one folder you can share with the notary.

A Salvadoran attorney or notary should confirm the specific requirements for your property and your signing plan. Requirements change, and the CNR or Hacienda may ask for something not on a general list.

• Passport valid well beyond the closing date
• NIT, or the documents for an agent to obtain it
• Draft poder especial in Spanish from the notary
• Apostille from the right US authority, then translation
• Source-of-funds file for the bank
• Scans of the promesa, certificación extractada and solvencias