Ecuador · Tax on foreign income
Does Ecuador tax foreign income? A guide for Americans
Short answer
Ecuador taxes you on worldwide income once you spend 183 days a year there. Short stays paid by a US employer aren't taxed here.
What you'd pay, by situation
| Retiree on US income $0 on short stays; at most about $17,600 a year on $90,000, before credits | Under 183 days a year, your US pension and interest aren't taxed in Ecuador. Living there all year, whether US pensions are exempt isn't settled. Needs review |
|---|---|
| Remote worker paid from the US $0 for 90 days; about $7,500 for 182 days or $8,300 for a full year, on $60,000 | Stays under six months are tax-free here if no Ecuadorian company bears your pay. Stay longer and pay for work done here is taxed. |
| Working for a local employer Residents 0–37%; non-residents a flat 25% | Pay for work done in Ecuador is taxed here, whoever pays it. |
Checked against the law The 183-day test, the six-month exception and the 25% non-resident rate.
Not yet verified The 2026 rate table and the missing US treaty, from official lists.
How it works
- Tax residence: 183 days or more in the year makes you resident. Your arrival day counts; your departure day doesn't.
- What's taxed: residents pay 0–37% on worldwide income, with a credit for foreign tax on the same income. Non-residents pay 25% on Ecuadorian income.
- New-resident break: for 5 years, first-time residents can pay only on Ecuadorian income. It needs $2,500 a month from abroad or a $150,000 investment, and joining social security.
- No US tax treaty: you still file a US return every year, and any US credit follows US rules alone; see a tax adviser.
- No Social Security agreement: US employees keep paying US Social Security tax.
Sources (3)
Links
- Ley de Régimen Tributario Interno, SRI Dirección Nacional Jurídica compilation, última reforma 24 Oct 2025
- Reglamento para la aplicación de la LRTI (Decreto Ejecutivo 374), SRI compilation, última reforma 2025-11-18
- SRI: Tablas para el cálculo del Impuesto a la Renta de personas naturales (2021-2026), incl. Res NAC-DGERCGC25-00000043, 2S RO 194, 30 Dec 2025
Taxes in Ecuador, with worked examples → The full Ecuador guide →
Questions people ask
Does Ecuador tax US Social Security and pensions?
Under 183 days a year, your US pension and interest aren't taxed in Ecuador. Living there all year, whether US pensions are exempt isn't settled. (Needs review)
Remote worker paid from the US in Ecuador: what would I pay?
Stays under six months are tax-free here if no Ecuadorian company bears your pay. Stay longer and pay for work done here is taxed. Ballpark: $0 for 90 days; about $7,500 for 182 days or $8,300 for a full year, on $60,000.
Working for a local employer in Ecuador: what would I pay?
Pay for work done in Ecuador is taxed here, whoever pays it. Ballpark: Residents 0–37%; non-residents a flat 25%.