Fair and Easy Ecuador Laws
Provide
Visitor, Resident
Protection
Ecuador laws
are
fair and easy and our 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 Problem
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.
Ecuador offers
permanent resident visas to foreign investors
and/or retirees. The Ecuadorian resident visa involves several steps
but the process is generally straightforward. The Pro-Ecuador staff has
experienced this part of the Ecuador law process many times and is
ready to help.
We also recommend David Beyer, an expat in Quito who has started a legal services company with
an Ecuadorian Attorney. Please write him at deb3069@juno.com, or
call toll free at 877-OKECUADOR, 877-653-2823. Please mention
Pro-Ecuador.com when you contact him.
Living legally
in
Ecuador is easy and the resident visa is a natural step toward making
Ecuador your second home. Be aware, the visa requirements have changed. You no longer have to remain in Ecuador for a total of nine months out of the year for the first two years. The new regulations state that you must return to Ecuador once every three months for the first two years. If you don't comply with this, when you do come back you can still maintain your visa by getting it re-validated. However, there is a substantial fine if you don't return every three months. We've heard that it is in the neighborhood of $350 - $450.
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!
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 only $7.84 USD, 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.
Living
legally in Ecuador is easy. Ecuador is open for business.
Ecuador laws are designed to facilitate foreign
investment once you
understand how to use them to your benefit. Join us as we share how
easy it is to invest and prosper in this delightful country!
If you are at all interested in living in Ecuador or investing in real estate in Ecuador, you’re in luck. Get 2 tours for one low price and find out all you need to know about how to wisely invest in Ecuador property. See a wide variety of properties for sale and let us explain the nuances of purchasing real estate in Ecuador.
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