Question 1

What does it cost to close on a property in El Salvador?

Accepted Answer

Typical closing costs in El Salvador run about 3–5% of the property price, split across three main line items: the transfer tax (ITBR) at 3% on the portion of the price above $28,571.43, the CNR registration fee at roughly 0.63% of the price (capped at $5,400), and notary / legal fees that usually land around $1,000 but can scale with the transaction. On top of that the buyer typically puts down a reserva of about 10% of the price at signing.

Question 2

How is the transfer tax (ITBR) calculated?

Accepted Answer

The Impuesto a la Transferencia de Bienes Raíces (ITBR) is 3% of the property price, but only on the amount above $28,571.43. So a $100,000 property owes ($100,000 − $28,571.43) × 3% = $2,142.86. Properties valued at $28,571.43 or less are exempt. The buyer is the taxpayer, and the 3% is due within 60 days of signing the escritura.

Question 3

What is the CNR fee and who pays it?

Accepted Answer

The Centro Nacional de Registros (CNR) charges an arancel de inscripción — sometimes called the alcabala — to record the new deed. The fee is approximately $0.63 per $100 of the property price, with a minimum of $8.86 and a maximum of $5,400. The buyer pays this fee at registration, on top of the ITBR transfer tax.

Question 4

What is the reserva and is it a fee?

Accepted Answer

The reserva is the initial payment — your down payment — that you make at signing. It is not a fee: the money goes toward the purchase itself. In El Salvador, 10% is the most common reserva, though banks or sellers can require more (or less). The calculator lets you set any percentage you want and will update the cash-to-close total accordingly.

Question 5

How much should I budget for the notary?

Accepted Answer

Notary and legal fees vary by professional and transaction size. A flat fee around $1,000 is common for straightforward purchases, but some notaries charge roughly 1% of the property price for larger or more complex deals. Ask for a written quote before committing, and update the "Legal" line item on the calculator to match.

Question 6

Is this calculator accurate enough to plan my budget?

Accepted Answer

The tool uses the current official CNR arancel and the ITBR rate set by Decreto Legislativo 552, so the transfer tax and registration numbers should be very close to what you'll actually pay. Notary fees and "other" costs (appraisal, bank processing, etc.) are estimates you control. For a final number, ask your notary for a closing cost quote and compare against the calculator.

Question 7

Do foreigners pay the same closing costs?

Accepted Answer

Yes. El Salvador does not charge foreigners a different transfer tax or registration fee — the rules are the same for Salvadorans and non-residents. Foreign buyers may have additional costs (translation of documents, power of attorney, wire fees) that you can capture in the "Other" line item.

Closing costs calculator