El Salvador's new Law of Foreign Agents, which came into effect on June 7, mandates that any individual or organization receiving foreign funding register as a "foreign agent." This law also requires them to provide information about their activities and finances to the Registry of Foreign Agents (RAEX).
Furthermore, the law imposes a 30% tax on foreign funds received. This measure has sparked controversy, with critics raising concerns about its potential impact on freedom of association and expression. The law also limits participation in activities considered "political."
The law has drawn criticism from local and international organizations, who view it as a threat to fundamental freedoms and democracy. The government, however, defends the law as a means to protect international cooperation and ensure that foreign funds are used for their intended purposes.