Ecuador Tax Rates
Ecuador operates a progressive tax system administered by the Servicio de Rentas Internas (SRI). Personal income tax is progressive with a top rate of 37%, corporate tax is 25%, and VAT (IVA) is 15%. Ecuador uses the US dollar as its official currency (since 2000). Residents are taxed on worldwide income. Ecuador is a member of the Andean Community (CAN) and applies regional tax rules.
Top Income Tax Rate
37%
Corporate Tax Rate
25%
VAT / Sales Tax
15%
Capital Gains Tax
10%
Detailed Tax Information
Income Tax Brackets
Ecuador imposes a progressive personal income tax with 10 brackets from 0% to 37%. The exempt threshold is approximately USD 11,902. Residents are taxed on worldwide income; non-residents at a flat 25% on Ecuadorian-source income. Deductions include personal expenses for housing, health, food, education, and clothing (up to limits).
| Income Range | Tax Rate |
|---|---|
| $0 – $12K | 0% |
| $12K – $15K | 5% |
| $15K – $20K | 10% |
| $20K – $26K | 12% |
| $26K – $34K | 15% |
| $34K – $45K | 20% |
| $45K – $60K | 25% |
| $60K – $81K | 30% |
| $81K – $107K | 35% |
| $107K+ | 37% |
Corporate Tax
Ecuador imposes a 25% corporate income tax, with a 28% rate for companies owned by entities in tax havens. Micro and small enterprises may benefit from reduced rates. Companies in special economic development zones (ZEDE) enjoy income tax reductions. A temporary contribution on corporate profits has been applied in certain years.
Standard Rate
25%
Capital Gains Tax
Capital gains from real estate sales are subject to a 10% tax on the gain (Impuesto a la Utilidad en la Transferencia de Predios Urbanos). Other capital gains are generally treated as ordinary income. Gains on share sales may be subject to income tax.
Rate
10%
VAT / Sales Tax
Ecuador levies a 15% IVA (increased from 12% in 2024 as part of fiscal reforms). Basic food items, medicines, exports, and educational and health services are zero-rated. A reduced 5% rate applies to certain goods and services. Monthly IVA returns are required.
Standard Rate
15%
Cryptocurrency Tax
Ecuador does not have specific cryptocurrency legislation. The Central Bank prohibited Bitcoin as legal tender but crypto trading is not explicitly banned. Tax treatment falls under general income tax rules.
Tax Treaties
Ecuador has approximately 18 double taxation agreements. As a member of the Andean Community (CAN), Ecuador applies the CAN Decision 578 framework for eliminating double taxation with Bolivia, Colombia, and Peru.
Treaty Network
18
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Ecuador
See how much you could save by moving here from your current country.
$-6,525
Tax in United States
$24K
24.4% effective
Tax in Ecuador
$31K
30.9% effective
Additional Cost
26.8%
more tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
