How To Get Residency in Ecuador: A Comprehensive Guide

3. Digital Nomad Visa: The economic requirements for Ecuador’s digital nomad visa are the same as those for the Rentista visa, with a minimum monthly income of $1,410.

Compared to similar programs, Ecuador’s digital nomad visa has two advantages:

First, it can be renewed indefinitely and converted into permanent residency;

Second, if you are a remote worker and your income does not meet the threshold, you can meet the economic requirement for the digital nomad visa by showing a savings deposit of 36 times the Ecuadorian minimum wage, approximately $16,560.

4. Work Visa: The Ecuadorian work visa requires you to secure a job in Ecuador before applying.

Ecuador also offers a “Professional Visa” for job seekers. As long as you are a university graduate and have had more than $10,000 in your bank account in the past six months, or have a credit card with a limit exceeding $15,000 that can be used in Ecuador, you can apply for a professional visa, allowing you to stay in Ecuador for up to two years while seeking employment opportunities.

Dependents:

For almost all of Ecuador’s short-term residence permits, the spouse and financially dependent children of the main applicant can apply for family reunification as dependent applicants.

Permanent Residency & Citizenship:

All Ecuadorian residence permits are valid for two years and can be renewed indefinitely under the same conditions (except for the Professional Visa, which cannot be renewed).

Foreigners who have legally resided in Ecuador for 21 months, with a total time spent outside the country not exceeding 90 days during that period, can apply for permanent residency in Ecuador.

In the first two years after obtaining permanent residency, Ecuadorian permanent residents cannot leave the country for more than 180 days.

Three years after obtaining permanent residency in Ecuador, foreigners can apply for citizenship.

Taxation:

Ecuador’s tax system operates on a residency-based principle, with different rules for residents and non-residents. An individual is generally considered a tax resident if they spend more than 183 days in the country within a 12-month period.

For tax residents, including foreign residents, income tax is levied on worldwide income, with progressive rates that can reach up to 37% for the highest earners. However, the first portion of income is exempt, and deductions for personal expenses like housing, education, and health are available. Foreign-sourced income that has already been taxed abroad may be exempt from Ecuadorian tax, though specific rules and credits apply to prevent double taxation.

Non-residents are only taxed on income earned from Ecuadorian sources. This income is generally subject to a flat 25% withholding tax.

Beyond income tax, there are other important taxes to consider:

• Value-Added Tax (VAT): The standard VAT rate is 15%, though some goods and services are exempt or have a 0% rate.

• Capital Gains Tax: Capital gains are generally treated as ordinary income.

• Outflow Tax (ISD): A 5% tax is applied to most funds transferred out of the country, with some exemptions.

• Property Tax: This is a municipal tax with rates varying by location.

Passport Power:

Ecuador is part of the Southern Common Market (MERCOSUR).As shown in the figure below, citizens of the member countries of this agreement can freely work and live in any other member country. After two years, if one can provide proof of financial means to support oneself and family, they can directly obtain a permanent residence visa in the country of residence. Having Ecuadorian citizenship is very convenient for living in South America.

Useful Links:

Ecuador Digit Nomad Visa: https://consuladovirtual.gob.ec/web/guest/inicio

Ecuador Visa Online Application Form: https://www.cancilleria.gob.ec/2020/04/14/visas/