Starting a business in
🇪🇨Ecuador
Checked November 9, 2026 · How we score
Corporate tax
25%
Top income tax
37%
Setup from
$1,500
all-in, first year
Time to form
10 days
visit usually needed
What is the corporate tax rate in Ecuador?
The headline corporate tax rate in Ecuador is 25% in 2026, and individuals pay up to 37%. 25% general rate; 28% if a tax-haven shareholder or undisclosed ownership is involved, and reduced rates apply to some new investments and exporters. Dividends paid by Ecuadorian companies trigger withholding, and the currency outflow tax (ISD, 5%) applies to most payments abroad.
| Corporate income tax | 25% 25% general rate; 28% if a tax-haven shareholder or undisclosed ownership is involved, and reduced rates apply to some new investments and exporters. Dividends paid by Ecuadorian companies trigger withholding, and the currency outflow tax (ISD, 5%) applies to most payments abroad. |
|---|---|
| Personal income tax (top) | 37% Progressive scale from 0% up to 37% on taxable income above about US$109,956 for 2026. Residents are taxed on income earned abroad, with a credit for foreign tax capped at the Ecuadorian tax attributable to that income. |
| Tax system | Worldwide income |
| Capital gains tax | 10%10% on gains from transferring shares in Ecuadorian companies; other gains are generally taxed as ordinary income. |
| Dividend withholding (non-residents) | 10% |
| VAT / GST | 15% |
| Social security | IVA (VAT) is 15%. IESS social security is about 9.45% for employees and 11.15% for employers. The 5% ISD currency outflow tax applies to payments abroad above a threshold. |
Forming a company in Ecuador
| Usual entity | S.A.S. (simplified stock company) or CÃa. Ltda. |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $1,500–$3,500 |
| Annual running cost | $2,500–$6,000 |
| Time to incorporate | 10 days |
| Form remotely as a foreigner | No |
| Local director required | Yes |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | No |
| Business banking for non-residents | Moderate |
Residency and visas
The digital nomad visa requires proof of remote income of about three times the monthly minimum wage (roughly US$1,400) and allows two years. The investor visa needs about 100 times the monthly minimum wage in real estate or a term deposit, and residents can apply for permanent residence and citizenship after the standard period.
| Digital nomad visa | Digital Nomad Visa |
|---|---|
| Golden visa | Yes, from $47k |
| Ease of residency for founders | 2/5 (1 = easiest) |
Taxes for individuals living in Ecuador
Residents of Ecuador are taxed on income generated abroad, whether Ecuadorian or foreign. A credit is available for foreign tax paid, capped at the Ecuadorian tax due on that income.
| Foreign income of residents | Taxed |
|---|---|
| Income tax structure | Progressive rates |
| Inheritance / estate tax | 35%Inheritance tax is progressive up to 35% on large estates, with exemptions for amounts below a threshold and lower effective rates for children and spouses. |
| Wealth tax | No |
| Annual property tax on your home | Yes |
| Exit tax when you leave | No |
| When you become tax resident | Resident if you spend 183 days or more in Ecuador in any 12-month period, or in two consecutive years, or your main economic interests are there. |
Special tax regimes
Digital Nomad Visa
A two-year visa for remote workers with foreign income of roughly three times the monthly minimum wage; income earned abroad is still taxable if you become a tax resident.
Investor visa (9-I)
Residence through real estate or term deposits of about 100 times the monthly minimum wage, leading to permanent residence.
New-investment incentives
New investments in priority sectors can get a three-to-five-year income tax holiday and a reduced corporate rate.
Pros and cons
Why founders pick Ecuador
- Uses the US dollar, no exchange-rate risk
- Digital nomad and investor visa routes
- Low cost of living and property prices
- No wealth tax
Watch out for
- 37% top personal rate and worldwide taxation of residents
- Inheritance tax up to 35%
- 5% currency outflow tax raises the cost of paying abroad
- Security and political volatility
Best for: Digital nomads and retirees who value a dollarised economy · Investors seeking low-cost residency via property · Exporters in agriculture and seafood
Ecuador: common questions
Is Ecuador a tax haven?
No. Ecuador is a normal-tax country: companies pay 25% corporate tax and the top personal income tax rate is 37%.
What is the corporate tax rate in Ecuador?
25% on net income. A 28% rate can apply where tax-haven shareholders or undisclosed ownership are involved, and some new investments get reduced rates.
How much is income tax in Ecuador?
Individuals pay progressive rates from 0% up to 37% on taxable income above about US$109,956 for 2026. Residents are taxed on worldwide income with a credit for foreign tax.
Does Ecuador tax foreign income?
Yes. Ecuadorian tax residents are taxed on income earned abroad, with a credit for foreign tax paid up to the Ecuadorian tax on that income.
Does Ecuador have a digital nomad visa?
Yes. It requires about three times the monthly minimum wage in remote income and gives two years of residence. Becoming a tax resident, however, means worldwide income is taxable.
What is Ecuador's ISD tax?
The Impuesto a la Salida de Divisas is a 5% tax on money transferred abroad, which makes paying overseas suppliers and moving profits out more expensive.
Sources
- SRI: Servicio de Rentas Internas
- PwC Worldwide Tax Summaries: Ecuador
- Ecuador Ministry of Foreign Affairs and Human Mobility
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.