A Comprehensive Guide to Long-term Residency in Ecuador

Capital: Quito

Population: 17,483,326 (2023, 73rd)

Ethic Group: 77.5% Mestizo, 7.7% Montubio, 7.7% Indigenous, 4.8% Black, 2.2% White

Area: 283,561 km²(73rd)

Offical Language: Spanish

Currency: USD

GDP per Captial: $13,642 (2024 estimated,109th)

Human Development Index: 0.765 (83rd)

Country Profile:

Ecuador is a developing country located in the northwest part of the South American continent, neighboring Colombia and Peru.

Economically, Ecuador relies on agriculture, oil exports, and tourism. The country is one of the world’s major exporters of bananas. Culturally, Ecuador has a rich blend of indigenous traditions and Spanish colonial influences, which are especially evident in its music, dance, and festivals.

Immigration And Visa System:

Ecuador uses the US dollar as its currency and has one of the world’s most relaxed visa-free policies, attracting a large number of foreigners each year.

If you wish to settle in Ecuador long-term, foreigners must first apply for a two-year Ecuadorian residence permit, which can then be renewed or used to apply for permanent residency.

Ecuador offers up to 13 types of short-term residence permits, with the four most common being:

1. Investment Visa: Foreigners can apply for an Ecuadorian investment visa by investing an amount equal to 100 times the Ecuadorian minimum wage in specific economic sectors within the country.

The specific amount required in 2024 is $45,000.

You can deposit $45,000 in one of Ecuador’s three local banks to obtain the visa. These banks offer a two-year fixed deposit interest rate between 3% and 8%.

You can also invest in purchasing local property with an appraised value of $45,000.

Often, the market value of Ecuadorian real estate is higher than the appraised value. For example, if you spend $50,000 on a house, the official appraisal might only value it at $30,000, meaning you would not qualify for the investment visa.

Alternatively, you can invest $45,000 to establish or purchase a local business.

2. Rentista Visa & Retirement Visa: The economic requirements, application process, and visa validity for Ecuador’s retirement visa and Rentista visa are identical.

Both require applicants to have a stable passive income that is three times the local minimum wage, which in 2024 is at least $1,380 per month.

The only difference between these two visas lies in the recognized sources of income. The retirement visa requires proof of pension or private insurance income, while the Rentista visa accepts other forms of passive income.

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 $1,380.

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 & Residency:

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:

The primary tax types in Ecuador are as follows:

1. Income Tax: It follows a progressive rate ranging from 5% to 35%, with a minimum taxable income threshold of $11,310.

2. Property Tax: Typically, both the buyer and seller are subject to a 10% tax on property transactions.

3. Goods and Services Tax (VAT): The standard VAT rate in Ecuador is 12%.

Naturalization:

The five types of short-term visas mentioned above have a duration of two years each. Ecuadorian residence visas do not require specific residency within the country and can be renewed indefinitely. To renew, you simply need to be present in Ecuador during the renewal process. However, if an applicant intends to apply for permanent residency, they must not spend more than a total of 90 days outside of Ecuador within a two-year period.

Foreign individuals who legally reside in Ecuador for two years and do not exceed a cumulative total of 90 days outside of the country within that period are eligible to apply for permanent residency.

During the first two years of holding permanent residency, foreign individuals must reside in Ecuador for more than half of each year. Starting from the third year, they must spend at least one day in Ecuador every two years.

After holding permanent residency for a minimum of three years, the visa holders can apply for Ecuadorian citizenship.

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/wp-content/uploads/2018/10/formulario_de_solicitud_de_visa.pdf