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 pay tax on only 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 in which the property is located. A $170,000 property in Cuenca currently pays $110 in annual property tax. A $34,000 rural property pays $7.50 per annum.
Taxes in Ecuador
Tax Information for 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 pay tax on only 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 in which the property is located. A $170,000 property in Cuenca currently pays $110 in annual property tax. A $34,000 rural property pays $7.50 per annum.