- The skyscraper will serve as Tether’s global headquarters and host other crypto and tech firms, boosting El Salvador’s digital economy.
- Critics argue tax exemptions favor foreign companies, while local businesses and workers face economic and skill-related challenges.
El Salvador’s legislative assembly approved a tax exemption in September 2024 for buildings exceeding 35 floors, paving the way for Tether’s planned 70-story “Tether Tower.”
The structure, confirmed by CEO Paolo Ardoino, will become the tallest in the country and serve as the company’s global headquarters. The project will not pay a 30% income tax or 5% value-added tax, a decision that has divided economists and local business leaders.
Our group is hiring impressive talent.
Great start of 2025.
Still doing all final interviews myself.— Paolo Ardoino
(@paoloardoino) January 15, 2025
The tower aims to host Tether’s operations alongside other crypto and tech firms seeking a base in Central America. El Salvador, which adopted Bitcoin as legal tender in 2021, has positioned itself as a hub for digital asset companies.
Tether’s relocation follows its January 2025 license approval as a Digital Asset Service Provider (DASP). President Nayib Bukele framed the project as an economic win, citing Tether’s market value—reportedly four times El Salvador’s GDP.
Critics question the fairness of tax exemptions for foreign firms while local businesses face standard rates. Others note practical hurdles: El Salvador’s credit reputation limits foreign investment, and the workforce lacks specialized training for crypto roles.
Additionally, Tether’s compliance officers are not required to reside in the country, a policy already used by sister company Bitfinex. This has raised concerns about regulatory oversight.
Ardoino emphasized hiring local staff for tech and compliance roles, though specifics remain unclear. Meanwhile, Tether continues expanding in Latin America. Its subsidiary, Tether Investments S.A. de C.V., recently bid to acquire 51% of Adecoagro, a major South American agribusiness. This move aligns with broader efforts to diversify beyond stablecoins.
The government has not disclosed projected job numbers or long-term fiscal impacts. For now, Tether’s tax-free skyscraper stands as a test of El Salvador’s strategy to reinvent its economy through digital assets—a high-stakes experiment with uncertain returns.
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