Rate
—
Duration
5 years
Prior non-residency
—
required before applying
Standard top income tax
37.0%
Ecuador, without the regime
Overview
- Regime
- Residencia fiscal temporal (LRTI)
- Country
- Ecuador
- Type
- Exemption
- Status
- Active
- Effective from
- Feb 9, 2024
- Expires on
- —
Details
- Summary
- First-time entrants who never were Ecuador tax residents may pay income tax only on Ecuador-source income for five fiscal years if they meet investment or foreign-income tests.
- Eligibility
- Natural person who has never been an Ecuador tax resident; must notify SRI and meet qualifying conditions within 120 days of entering Ecuador.
- Benefits
- Foreign-source income is outside the Ecuador income tax base during the regime; Ecuador-source income remains taxable at standard rates.
- Requirements
- USD 150,000 investment in Ecuador real estate or productive activities held at least five years, or proven non-Ecuadorian monthly income of at least USD 2,500 plus social-security affiliation while in Ecuador; maintain at least 183 days physical presence per fiscal year.
- Limitations
- One-time regime; after five years, worldwide taxation applies if standard residency tests are met; regime lapses in any year with fewer than 183 days in Ecuador.
- Income types covered
- Foreign-source income exempt from Ecuador PIT during the window
- Duration details
- Five fiscal years from the year conditions are met
View source LRTI (reform Dec. 157, RO Sup. 496, 9 Feb 2024)