Ecuador’s low taxes on Income Tax and numerous exemptions to foment foreign investment are supporting local economy. Especially on promoting country’s development, although it maintains as the 8th economy in this region. Therefore, temporal residents can be subject to exemption on various taxes during the next five years. 

Over the years, non-residential people must invest in the country in two different ways. The first option is making an investment of about USD 150.000 when entering the country in productive activities or real estate. However, another option is returning an stable monthly income of USD 2.500, from non-Ecuadorian sources, and making a voluntary affiliation to the Ecuadorian Social Security system. 

As a result of this special temporary regime, the investor will benefit from non-returning foreign income. In a certain way, there is no obligation to file a global income and wealth tax return, not even in an informative manner, although he or she must pay indirect taxes such as VAT.  

Furthermore, it exists an interesting fiscal incentive, the correspondent to Income Tax, as companies which hire, at least, 12 employees between 18 and 29 years old can get a 20% reduction; or 90% to those which hire more than 500 people. Such as investing in renewable energies can provide an exoneration that can last for ten years. 

Auxadi manages accounting, payroll and taxes for numerous entities in Ecuador and in more than 50 countries. 

Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.