Fair and Easy Ecuador Laws Provide

 Visitor and Resident Protection

Ecuador laws are fair and easy.  Our personal experience is that Ecuador is definitely open for business! Ecuador laws provide flexibility and protection for visitors and residents alike.

Ecuador real estate laws are favorable to foreigners, requirements for Ecuador visas are not complicated, and tax requirements for U.S. Citizens living in Ecuador are reasonable.

Did you know that foreigners may legally own title to real property and entire companies in Ecuador? Ecuador real estate laws provide equal protections for both foreigners and citizens.  Click here to read about the Real Estate buying process. 

That adobe house you’ve been dreaming of can be yours for less than half the cost of a comparable house in the U.S. and less than one-quarter the cost in the UK! This is just one of many reasons to consider living and investing in Ecuador.

Thinking about buying real estate in Ecuador?  Read about our services.

Tourist Visa Requirements are Easy,
Residence Visas a Bit More Complicated,
But No Problemo

There are several different types of Ecuador visas to accommodate any visitor. If you plan to stay for less than six months, don’t worry at all. Upon entry in Ecuador you will receive a 90-day tourist visa that can be extended to 180 days, but only if you leave the country to get a renewal.

If you don't want to do this, but want to stay 180 days, they you need to apply for a 12-IX tourist visa from an Ecuadorian consulate before you leave the U.S.  This will cost around $230 per person.  Be advised that visa rules and enforcement change regularly.  Watch our blog to get up to date information about the latest in visa happenings.  

Tax Requirements are Reasonable
The Foreign Exclusion Deduction for US Citizens
Makes Ecuador a Bargain

Tax requirements for foreigners living in Ecuador are quite reasonable. The Ecuadorian government generates a majority of its tax revenue from a 12% value added tax (IVA). Ecuadorians do not like surprises and this tax is often already included in the total price of goods.

The one exception is in most better hotels and restaurants. Here, a $60 quoted hotel bill quickly becomes $73.20 when the 12% IVA and 10% service charge is added!  And you may not be aware of that until you look at your bill at check-out time.

Restaurants are required to state clearly on the menu if the tax is not included in the price. Generally, however, most foreigners do not find the IVA tax objectionable because prices for most items are generally so affordable.

Case in point is an incredible little restaurant in Cotacachi where the roses are always fresh, the linens impeccable and the 2-inch-thick Chateaubriand is around $8, including IVA!

The Ecuadorian government taxes businesses and individuals only on income earned in Ecuador at a graduated scale up to a maximum of 25%.

While the U.S. requires its citizens living in Ecuador to pay tax on worldwide income, benefits such as the foreign earned income exclusion make living and investing in Ecuador an excellent choice for personal and financial success.

Ecuador income taxes are based only on income earned in country. Ecuador real estate laws provide an exceptional value to property owners each year in the form of a tax bill. The average property tax rate in Ecuador is only 0.2% of the assessed value!

Since property is very affordable in Ecuador, property tax payments are almost insignificant. This cannot be said about property in either Europe or the United States.