Ecuador’s tax agency is the Servicio de Rentas Internas (SRI). Almost all taxes are derived from the Código Tributario and the Ley de Régimen Tributario Interno (LRTI), which define the principles, rates, and exemptions that apply to residents and non-residents alike.

Tax Basics

Income Tax — Impuesto a la Renta

Residents (those staying 183 days or more in a tax year)[1] are generally[2] taxed on their worldwide income.[3]

Non-residents generally only pay income tax on Ecuadorian-source income; for example, local employment, rental, or investment income.[4]

Rates for individuals currently range from 0% to 37%, depending on annual income after deductions.[5]

Residents can deduct certain personal expenses[6] like housing, health, education, food, clothing, and others up to a capped limit that is updated annually by the SRI.[7]

Certain high-income or high-net-worth individuals are required to maintain accounting records signed off by a certified accountant.[8]

U.S. citizens: Foreign-source retirement income is generally taxable for Ecuadorian residents. While double taxation can usually be avoided through income tax treaties, the U.S. is a notable exception as Ecuador and the United States do not have an income tax treaty.

Foreign tax credits: Income taxes already paid abroad can generally be credited if properly documented.[9] This appears to require apostilled tax statements translated into Spanish.

Investment Taxes

Dividends from Ecuadorian companies are generally subject to a 12% withholding tax.[10]

Capital gains from real estate are generally subject to municipal tax, but not income tax.

Interest on local CDs (depósitos a plazo fijo) held for more than 180 days has been generally tax-exempt since 2021.[11]

Note: Investment income, including income from foreign sources, is taxable for residents.[12]

Sales Tax — IVA (Impuesto al Valor Agregado / VAT)

Applies to most goods and services at 15%, raised from 12% in 2024. Certain essentials - basic food basket items, education, and health services and medicines - are subject to 0% IVA.[13]

Currency Exit Tax — ISD (Impuesto a la Salida de Divisas)

A 5% tax applies to money transferred out of Ecuador.[14]

Municipal Taxes

Local taxes apply to real estate, vehicles, business licenses, and more. Rates and rules vary by municipality.

Who Must File and When

  • Income tax
    (individuals)     File annually in March if gross income exceeds the SRI threshold (~$12,000 in 2025). The exact due date depends on the 9th digit of your cédula.[15]
  • Income tax
    (companies)     Corporate returns are filed in April.
  • IVA Sellers file monthly or semi-annually, depending on business size.[16]
  • Currency exit tax
    (ISD)     Usually collected automatically at the point of transfer. If not collected automatically, must be filed in April.[17]
  • Vehicle tax Paid yearly at registration renewal. The month due depends on the last digit of your plate number.[18]
  • Property tax Paid once a year. Some municipalities offer a discount for early payment.

Notes & Sources

1 LRTI art. 4.1
2 There is currently an option on the digital nomad visa application to elect residencia fiscal temporal if you meet certain conditions (either a $150,000 investment in Ecuador, or a foreign income of at least $2,500/month combined with affiliation with the Ecuadorian social security system). This allows you to avoid being taxed in Ecuador on foreign-source income for up to 5 years. See Registro Oficial Suplemento Nº 461 (December 20, 2023).
3 LRTI art. 2 num. 2
4 LRTI art. 2 num. 1 & 2
5 Current income tax rate tables are published by the SRI. View rate tables →
6 LRTI art. 10-13
7 LRTI, second unnumbered article after art. 10; Registro Oficial Suplemento Nº 335 p.18 art. 3 (June 20, 2023)
8 Reglamento para la Aplicación de la Ley de Régimen Tributario Interno (RALRTI) Art. 37
9 LRTI art. 49
10 LRTI art. 39.2
11 LRTI art. 9 num. 15.1
12 LRTI art. 2 num. 1 & 2
13 LRTI art. 55
14 SRI overview of the currency exit tax. sri.gob.ec →
15 Income tax filing deadlines by cédula digit. sri.gob.ec →
16 IVA filing schedule and requirements. sri.gob.ec →
17 ISD filing details and exemptions. sri.gob.ec →
18 Vehicle tax information. sri.gob.ec → Note: additional taxes and fees will likely be due at your yearly inspection and registration renewal.