Taxes in Ecuador DTA with U.S.: No Income Tax: Charged at progressive rates from 5% (on annual incomes of $6,800 and higher) to 25% (on incomes of $54,400 and up). Sales Tax: Standard VAT is 12% on most goods and services. Real estate transfer is exempt. Transfer Tax: 1% of the assessed commercial or municipal value of the property. Capital Gains: Gains on the sale of property are subject to CGT (25% maximum) on the net gain in municipal value. If you sold a $170,000 house (municipal value of $4,250), for $270,000 (municipal value of $6,250), you only pay tax on the difference in the municipal value ($2,000). Rental Income Tax: Subject to regular income tax rates from 0% to 25%. Property Tax: Amount depends on the province and cantonin which the property is located. A $170,000 in Cuenca currently pays $110 in annual property tax. A $34,000 rural property pays $7.50 per annum.
Learn more about taxes in Ecuador in IL Postcards. |