If you are a resident in Ecuador and earn money, then you are liable to pay income tax on what you make both within and outside of Ecuador. If you don’t have residency status, then you’ll only be required to pay tax on what you earn within the country.
If you’ve been living in Ecuador for more than half a tax year, you will automatically be considered a resident unless you can prove that you don’t intend to continue living there.
Taxable income includes income earned from a business; paid work; some capital gains, income from property rental and all interest earned on savings. There are a number of allowances that you can claim when you file your tax return (declaración de impuestos), such as donations to charity, interest on certain types of savings and reasonable work-related expenses. Married couples are not permitted to file a joint tax return and must complete individual forms.
Ecuador’s tax office, the Servicio de Rentas Internas, details current tax bands on its website .
Ecuador has a reliable and developed private medical care infrastructure. It’s strongly advised that expats take out private health insurance. Though the country has a state healthcare system, the quality of private health care is markedly better. See the Health section of this guide for further information.
If you have bought property in Ecuador, home insurance is highly recommended. The main risks you face are from earthquakes and burglary. Though the chances of either happening are relatively low, insurance policies are cheap enough for it to be worthwhile taking out cover. Some of the major firms offering comprehensive home insurance include Seguros Bolívar, Seguros Unidos, and Diners Club International.
If you don’t feel your Spanish is good enough to organise insurance with an Ecuadorian company, you could consider global insurance brokers like Globalsurance . Be prepared to pay much higher premiums if you go down this route.