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Monday, March 3, 2008
Thursday, February 28, 2008
Taxes in Ecuador
The Pro-Ecuador BLOG has moved. Our news address is www.living-in-ecuador-blog.com
Click here to read this post at the new BLOG.
Pro-Ecuador received the following question:
"I am researching retirement options in Ecuador. I found conflicting information on this site and Global Investors regarding Ecuador’s tax on personal income not earned in Ecuador. I do not plan to work and will live off existing income from my USA Investments. Global Investors says that Ecuador taxes personal income earned outside Ecuador at 25%. What is the straight scoop?"
You are only taxed on income earned in Ecuador. Your investment income from the United States will not be taxed in Ecuador. If you do not work in Ecuador you will have no need to file an Ecuadorian tax return.
This information comes from the following Ecuadorian law:
Internal Tributary Regime Law of Ecuador
Art. 102. - Treatment of foreign income. - All natural persons or companies resident in Ecuador that obtain income from outside of the country, for which they are taxed for in another country, will exclude themselves from the tax basis in Ecuador and consequently they will not be put under imposition. In the case of originating rents of fiscal paradises the exemption would not apply and the income would be considered in the calculation of income earned in Ecuador.
Original text in Spanish:
Art. 102.- Tratamiento sobre rentas del extranjero .- Toda persona natural o sociedad residente en el Ecuador que obtenga rentas en el exterior, que han sido sometidas a imposición en otro Estado, se excluirán de la base imponible en Ecuador y en consecuencia no estarán sometidas a imposición. En el caso de rentas provenientes de paraísos fiscales no se aplicará la exención y las rentas formaran parte de la renta global del contribuyente.
Click here to read this post at the new BLOG.
Pro-Ecuador received the following question:
"I am researching retirement options in Ecuador. I found conflicting information on this site and Global Investors regarding Ecuador’s tax on personal income not earned in Ecuador. I do not plan to work and will live off existing income from my USA Investments. Global Investors says that Ecuador taxes personal income earned outside Ecuador at 25%. What is the straight scoop?"
Pro-Ecuador Reply:
You are only taxed on income earned in Ecuador. Your investment income from the United States will not be taxed in Ecuador. If you do not work in Ecuador you will have no need to file an Ecuadorian tax return.
This information comes from the following Ecuadorian law:
Internal Tributary Regime Law of Ecuador
Art. 102. - Treatment of foreign income. - All natural persons or companies resident in Ecuador that obtain income from outside of the country, for which they are taxed for in another country, will exclude themselves from the tax basis in Ecuador and consequently they will not be put under imposition. In the case of originating rents of fiscal paradises the exemption would not apply and the income would be considered in the calculation of income earned in Ecuador.
Original text in Spanish:
Art. 102.- Tratamiento sobre rentas del extranjero .- Toda persona natural o sociedad residente en el Ecuador que obtenga rentas en el exterior, que han sido sometidas a imposición en otro Estado, se excluirán de la base imponible en Ecuador y en consecuencia no estarán sometidas a imposición. En el caso de rentas provenientes de paraísos fiscales no se aplicará la exención y las rentas formaran parte de la renta global del contribuyente.
Monday, February 25, 2008
Flooding in Ecuador
The Pro-Ecuador BLOG has moved. Our news address is www.living-in-ecuador-blog.com
Click here to read this post at the new BLOG.
With over 55,000 affected families and 100,000 hectares of lost crops, the Ecuadorian coast is experiencing the worst flooding of the past 10 years.
Affected areas include the provinces of Guayas, Manabi, El Oro, and Los Rios.
The Ecuadorian highlands, Amazon region, and the entire Ecuadorian beachfront are not affected by these floods.
Winter is the rainy season in Ecuador. The massive Andes Mountains feed many powerful rivers that cross the flat Ecuadorian coast. Heavy winter rains cause flooding every year. Babahoyo is known for houses with “legs” because such floods are a normal part of life.
People still live in high-risk areas
Much of the coast is prone to flooding. However, people still live and farm in these high-risk areas. This year the flooding is especially bad, but the residents will return when the waters subside, just like in New Orleans.
Note: In Ecuador the term "coast" refers to a large section of the country West of the Andes mountains and should not be confused with the "beach."
Click here to read this post at the new BLOG.
With over 55,000 affected families and 100,000 hectares of lost crops, the Ecuadorian coast is experiencing the worst flooding of the past 10 years.
Affected areas include the provinces of Guayas, Manabi, El Oro, and Los Rios.
The Ecuadorian highlands, Amazon region, and the entire Ecuadorian beachfront are not affected by these floods.
Winter is the rainy season in Ecuador. The massive Andes Mountains feed many powerful rivers that cross the flat Ecuadorian coast. Heavy winter rains cause flooding every year. Babahoyo is known for houses with “legs” because such floods are a normal part of life.
People still live in high-risk areas
Much of the coast is prone to flooding. However, people still live and farm in these high-risk areas. This year the flooding is especially bad, but the residents will return when the waters subside, just like in New Orleans.
Note: In Ecuador the term "coast" refers to a large section of the country West of the Andes mountains and should not be confused with the "beach."
Sunday, February 24, 2008
A Saturday Visit to the Otavalo Market
The Pro-Ecuador BLOG has moved. Our news address is www.living-in-ecuador-blog.com
Click here to read this post at the new BLOG.
Yesterday, Linda and I left Cotacachi and took our house guest, Durga Ishaya, to the Otavalo Market, which is about 5 miles from here.
This market is simply incredible. Literally thousands of vendors from all over northern Ecuador, along with sizable group of tourists, swarm down on this small city, inundating it like a a swarm of bees.
We haven't been to the Saturday Otavalo market for several months, and it seems to me that it just gets bigger and bigger. The heart of the market is a full square block of stands called Plaza de los Ponchos.
I get completely lost in this maze of vendors. It's a wonder that I ever find my way out. From the plaza, the stand and booths radiate 8 to 10 blocks out on every street, so you literally have 70 or 80 blocks of vendors, all hoping to trap the unwary tourist in their smiles and charms, thereby separating them from their money.
For example, Durga wanted to purchase a couple of Panama hats (these hats, while called Panama, are made here in Ecuador). She found a very friendly, young, female vendor and engaged her in the ritual negotiation dance. The price started out at $12 each. Finally, after about 10 minutes of friendly banter, we managed to get the price down to $15 for two, including a nice wooden box to put them in.
We felt energized, like we had received a wonderful deal. A few minutes later, I priced a similar hat at a neighboring stand. This vendor started out at $7 per hat. Ouch!!! One rule reins supreme in this market: "Let the buyer beware." Click here for Info on how to negotiate.
Nevertheless, the market is great fun, there are wonderful works of art, textiles, beautifully painted wooden bowls, and magnificent stone sculptures, not to mention rows and rows of hand crafted silver jewelry.
A visit to the Otavalo market is worth the trip to Ecuador in itself. Not to mention the fact that it is only a few minutes from Cotacachi's leather street, and San Antonio de Ibarra's wood carvers.
But we will leave those delights for another post.
Click here to read this post at the new BLOG.
Yesterday, Linda and I left Cotacachi and took our house guest, Durga Ishaya, to the Otavalo Market, which is about 5 miles from here.
This market is simply incredible. Literally thousands of vendors from all over northern Ecuador, along with sizable group of tourists, swarm down on this small city, inundating it like a a swarm of bees.
We haven't been to the Saturday Otavalo market for several months, and it seems to me that it just gets bigger and bigger. The heart of the market is a full square block of stands called Plaza de los Ponchos.
I get completely lost in this maze of vendors. It's a wonder that I ever find my way out. From the plaza, the stand and booths radiate 8 to 10 blocks out on every street, so you literally have 70 or 80 blocks of vendors, all hoping to trap the unwary tourist in their smiles and charms, thereby separating them from their money.
For example, Durga wanted to purchase a couple of Panama hats (these hats, while called Panama, are made here in Ecuador). She found a very friendly, young, female vendor and engaged her in the ritual negotiation dance. The price started out at $12 each. Finally, after about 10 minutes of friendly banter, we managed to get the price down to $15 for two, including a nice wooden box to put them in.
We felt energized, like we had received a wonderful deal. A few minutes later, I priced a similar hat at a neighboring stand. This vendor started out at $7 per hat. Ouch!!! One rule reins supreme in this market: "Let the buyer beware." Click here for Info on how to negotiate.
Nevertheless, the market is great fun, there are wonderful works of art, textiles, beautifully painted wooden bowls, and magnificent stone sculptures, not to mention rows and rows of hand crafted silver jewelry.
A visit to the Otavalo market is worth the trip to Ecuador in itself. Not to mention the fact that it is only a few minutes from Cotacachi's leather street, and San Antonio de Ibarra's wood carvers.
But we will leave those delights for another post.
Wednesday, February 20, 2008
The Downside of Living in Ecuador?
The Pro-Ecuador BLOG has moved. Our news address is www.living-in-ecuador-blog.com
Click here to read this post at the new BLOG.
We had a question from a reader recently about what the downside is of living in Ecuador. Actually, believe it or not, that is somewhat of a tough question to answer.
The downside of Living in Ecuador?
Ecuador is a beautiful country with limitless potential for the prospective resident. The primary downside it that to be happy here, one must acknowledge and accept that Ecuador is a developing nation.
As a developing nation many elements of society may be very different from what you accept as "normal" back home. Ecuador is full of contrast and surprises, some wonderful and some not so wonderful. The Latin concept of mañana is very evident here. The big thing to remember is that mañana doesn’t necessarily mean tomorrow. It just means, not today.
Everyone likes Ecuador because the cost of living in so low.
We must accept that the cost of living is low because Ecuador is a developing nation. It is very tempting to try to compare Ecuador to the developed world, and to try to change those things that don’t fit with our perspective.
But we should resist the urge because if Ecuador becomes too developed too quickly, our low cost sanctuary may be gone. The last thing we want to see happen here is what is happening in Panama and to a certain extent in Costa Rica: they are becoming suburbs of Miami and L.A.
I like Ecuador just the way it is, with all its warts and bumps, and its beauty and magic. Come here prepared to adapt and you will be fine. Come here with the idea that you can change things quickly, and you may find yourself chewed up and miserable.
Have you signed up for our newsletter? If not, click here.
Click here to read this post at the new BLOG.
We had a question from a reader recently about what the downside is of living in Ecuador. Actually, believe it or not, that is somewhat of a tough question to answer.
The downside of Living in Ecuador?
Ecuador is a beautiful country with limitless potential for the prospective resident. The primary downside it that to be happy here, one must acknowledge and accept that Ecuador is a developing nation.
As a developing nation many elements of society may be very different from what you accept as "normal" back home. Ecuador is full of contrast and surprises, some wonderful and some not so wonderful. The Latin concept of mañana is very evident here. The big thing to remember is that mañana doesn’t necessarily mean tomorrow. It just means, not today.
Everyone likes Ecuador because the cost of living in so low.
We must accept that the cost of living is low because Ecuador is a developing nation. It is very tempting to try to compare Ecuador to the developed world, and to try to change those things that don’t fit with our perspective.
But we should resist the urge because if Ecuador becomes too developed too quickly, our low cost sanctuary may be gone. The last thing we want to see happen here is what is happening in Panama and to a certain extent in Costa Rica: they are becoming suburbs of Miami and L.A.
I like Ecuador just the way it is, with all its warts and bumps, and its beauty and magic. Come here prepared to adapt and you will be fine. Come here with the idea that you can change things quickly, and you may find yourself chewed up and miserable.
Have you signed up for our newsletter? If not, click here.
Costs For a Wedding in Ecuador
The Pro-Ecuador BLOG has moved. Our news address is www.living-in-ecuador-blog.com
Click here to read this post at the new BLOG.
Many Ecuadorian families do not have enough money to have a large wedding. But for those with enough money, here are some sample costs.
The cost of the party depends of the city in Ecuador and the place where you will have your reception party. Prices range from $20- $40 per person, including food, decoration, wedding cake, music, place of the reception, and non alcoholics drinks (sparkling water, sodas). The average Ecuadorian wedding includes 200 guests.
Our customs are a little different from the US; we don’t have a rehearsal dinner. The parents of the groom usually pay for drinks and music and sometimes they will buy the bride’s wedding dress. The grandparents often offer to pay for the souvenirs, the wedding ring or the honeymoon. This is up to the grandparents and the parents of the bride will typically pay the remaining costs.
Recently, families divide the entire wedding cost between the 2 families. In some cases the bride and groom pay all costs.
Here is an estimate for a typical wedding of 200 people.
Whiskey $700
Wedding Dress $500
Souvenirs $600
Honeymoon $500
Reception $6,000
Total cost for a 200 person wedding could range from $6,500 to $10,000, all depending on the location and selection of extras.
Gifts for a wedding in Ecuador, click here to read more.
Click here to read this post at the new BLOG.
Many Ecuadorian families do not have enough money to have a large wedding. But for those with enough money, here are some sample costs.
The cost of the party depends of the city in Ecuador and the place where you will have your reception party. Prices range from $20- $40 per person, including food, decoration, wedding cake, music, place of the reception, and non alcoholics drinks (sparkling water, sodas). The average Ecuadorian wedding includes 200 guests.
Our customs are a little different from the US; we don’t have a rehearsal dinner. The parents of the groom usually pay for drinks and music and sometimes they will buy the bride’s wedding dress. The grandparents often offer to pay for the souvenirs, the wedding ring or the honeymoon. This is up to the grandparents and the parents of the bride will typically pay the remaining costs.
Recently, families divide the entire wedding cost between the 2 families. In some cases the bride and groom pay all costs.
Here is an estimate for a typical wedding of 200 people.
Whiskey $700
Wedding Dress $500
Souvenirs $600
Honeymoon $500
Reception $6,000
Total cost for a 200 person wedding could range from $6,500 to $10,000, all depending on the location and selection of extras.
Gifts for a wedding in Ecuador, click here to read more.
High Praise
The Pro-Ecuador BLOG has moved. Our news address is www.living-in-ecuador-blog.com
Click here to read this post at the new BLOG.
We just received this comment from a reader that I would like to share with you. Our team has been working very hard on our website for nearly 9 months, and when we get comments like this, it really makes our day. We are endeavoring to provide a good service to people who are in any way thinking about Ecuador. This comment makes me feel like we are succeeding. Thank you.
Dear Linda, Gary and Jason,
I have been a reader of International Living Magazine for several years, but your newsletter has, in three issues, been far more valuable to me concerning the country and people of Ecuador than the twenty-some issues of IL.
Thanks and keep up the good work.
Scott
Dear Reader,
We would love to add your name to our newsletter list. We completely respect your privacy. Your name will never be sold or used for any other purpose than to send you the Pro-Ecuador Insider Information Newsletter. Please click here to sign up.
Click here to read this post at the new BLOG.
We just received this comment from a reader that I would like to share with you. Our team has been working very hard on our website for nearly 9 months, and when we get comments like this, it really makes our day. We are endeavoring to provide a good service to people who are in any way thinking about Ecuador. This comment makes me feel like we are succeeding. Thank you.
Dear Linda, Gary and Jason,
I have been a reader of International Living Magazine for several years, but your newsletter has, in three issues, been far more valuable to me concerning the country and people of Ecuador than the twenty-some issues of IL.
Thanks and keep up the good work.
Scott
Dear Reader,
We would love to add your name to our newsletter list. We completely respect your privacy. Your name will never be sold or used for any other purpose than to send you the Pro-Ecuador Insider Information Newsletter. Please click here to sign up.
UpDate: The Gentle Art of Negotiation
The Pro-Ecuador BLOG has moved. Our news address is www.living-in-ecuador-blog.com
Click here to read this post at the new BLOG.
I received some very good question from a reader about the Art of Negotiation web page, which allows me to expand a bit on this subject.
Dear Gary,
*Do you negotiate in restaurants? * No, this is not necessary, unless there is no menu and the price they quote you seems high. But most places have menus and just go with the printed prices.
*Do you negotiate in hotels? * The higher end chain hotels have a set price, but the mid and lower end privately owned hotels regularly give discounts just for the asking. It is very simple to ask, "no puede dar me un discuento?" Sometimes, the hotel will say, "do you need a receipt?" If you say no, then they will often give you a 10-15% discount. Nothing ventured, nothing gained.
That said, we have even received discounts at the Hotel Quito simply by asking.
* Should I negotiate for tour services and guides?* Many tour services will give discounts too, just for the asking, especially if you are within one or two days of departure. The tour company may have 10 slots but only 8 filled. For them, it is better to get something rather than nothing for those last two slots, because their fixed costs are already covered by the first 8.
In fact, this is a very good strategy for getting low cost fairs to the Galapagos and to the Amazon, particularly if you are in country and your departure date is flexible. You can sometimes save as much as 50%, even on the expensive boats. Shop around.
There are many of tour agencies in the Mariscal Sucre district of Quito. But make sure you ask for references, and have them specify exactly what you are getting for your fare. Sometimes the agencies cut fares by cutting services.
If you go to two or three agencies and do some comparison shopping, you can get an idea of the differences for different prices Also, check the guide books. Many tour books will point out agencies that are less than solid.
*I assume that most people who are can afford to visit from wealthier countries are considerably wealthier than the people of Ecuador. I imagine that I may well feel quite a degree of guilt if I try too hard to get the best deal.*
This is most often an erroneous assumption and is characteristic (excuse me for being blunt) of the imperial attitude of many westerners who travel abroad. In the market places of Ecuador, especially Otavalo, the merchants have been doing this business for years, even centuries. They send family members to Europe and America to peddle goods they make here in Ecuador. They have found that the "we are so poor" approach works very well with gringos to separate them from their dollars. Then they get into their new 4 wheel drive pick-up and drive home.
I guarantee that no one will sell an item at a price that they do not want to sell it for. If you make a deal with a merchant, then you can be assured that he is happy with what he gets. Maybe you cut into his margin a bit, but he knows that the next gringo that comes along will make up for it.
Many times, westerners are played for suckers because of their "Oh, we just want to help attitude." The wise merchants love it. I have negotiated hard, even walked away from a potential purchase, then come back and buy it, only to find that on another day, a friend or acquaintance purchased the same item for 20%-30% less than what I paid. So regarding your feeling of guilt, I have one thing to say. Get over it. haha.
Now, in spite of all this, if you hire a guide, go on an excursion,etc., you've bargained hard for a good price, and then you get excellent service, reward the service with a good tip. Believe me, you will be appreciated.
So the bottom line is this: If in doubt about a quoted price, ask for a discount. This simple question takes you out of the tourist class and puts you into the traveler class. There is a huge difference and can save you significant dollars on your trip.
Happy journeys,
Gary
Click here to read this post at the new BLOG.
I received some very good question from a reader about the Art of Negotiation web page, which allows me to expand a bit on this subject.
Dear Gary,
*Do you negotiate in restaurants? * No, this is not necessary, unless there is no menu and the price they quote you seems high. But most places have menus and just go with the printed prices.
*Do you negotiate in hotels? * The higher end chain hotels have a set price, but the mid and lower end privately owned hotels regularly give discounts just for the asking. It is very simple to ask, "no puede dar me un discuento?" Sometimes, the hotel will say, "do you need a receipt?" If you say no, then they will often give you a 10-15% discount. Nothing ventured, nothing gained.
That said, we have even received discounts at the Hotel Quito simply by asking.
* Should I negotiate for tour services and guides?* Many tour services will give discounts too, just for the asking, especially if you are within one or two days of departure. The tour company may have 10 slots but only 8 filled. For them, it is better to get something rather than nothing for those last two slots, because their fixed costs are already covered by the first 8.
In fact, this is a very good strategy for getting low cost fairs to the Galapagos and to the Amazon, particularly if you are in country and your departure date is flexible. You can sometimes save as much as 50%, even on the expensive boats. Shop around.
There are many of tour agencies in the Mariscal Sucre district of Quito. But make sure you ask for references, and have them specify exactly what you are getting for your fare. Sometimes the agencies cut fares by cutting services.
If you go to two or three agencies and do some comparison shopping, you can get an idea of the differences for different prices Also, check the guide books. Many tour books will point out agencies that are less than solid.
*I assume that most people who are can afford to visit from wealthier countries are considerably wealthier than the people of Ecuador. I imagine that I may well feel quite a degree of guilt if I try too hard to get the best deal.*
This is most often an erroneous assumption and is characteristic (excuse me for being blunt) of the imperial attitude of many westerners who travel abroad. In the market places of Ecuador, especially Otavalo, the merchants have been doing this business for years, even centuries. They send family members to Europe and America to peddle goods they make here in Ecuador. They have found that the "we are so poor" approach works very well with gringos to separate them from their dollars. Then they get into their new 4 wheel drive pick-up and drive home.
I guarantee that no one will sell an item at a price that they do not want to sell it for. If you make a deal with a merchant, then you can be assured that he is happy with what he gets. Maybe you cut into his margin a bit, but he knows that the next gringo that comes along will make up for it.
Many times, westerners are played for suckers because of their "Oh, we just want to help attitude." The wise merchants love it. I have negotiated hard, even walked away from a potential purchase, then come back and buy it, only to find that on another day, a friend or acquaintance purchased the same item for 20%-30% less than what I paid. So regarding your feeling of guilt, I have one thing to say. Get over it. haha.
Now, in spite of all this, if you hire a guide, go on an excursion,etc., you've bargained hard for a good price, and then you get excellent service, reward the service with a good tip. Believe me, you will be appreciated.
So the bottom line is this: If in doubt about a quoted price, ask for a discount. This simple question takes you out of the tourist class and puts you into the traveler class. There is a huge difference and can save you significant dollars on your trip.
Happy journeys,
Gary
Monday, February 18, 2008
Ecuador Real Estate Feature
The Pro-Ecuador BLOG has moved. Our news address is www.living-in-ecuador-blog.com
Click here to read this post at the new BLOG.
Colonia el Baton Opens its First House in Cotacachi
by Gary Phillips
Ecuador real estate is booming in Cotacachi. A new development here, Colonia El Batan, opened the first of 14 houses Feb. 17, with an inauguration party that had the new owner, Al DeLoach, in tears.
The 3,000 sq. ft. house was commissioned about 5 months ago with the builders and developers, Marcelo and Jimmy Penafiel. For Linda and me, having lived in Ecuador now for nearly a year and a half, something very exciting happened in our experience: The house was delivered to the owner on exactly the date that was promised several months ago!
“Having lived in the U.S., I understand the requirements of North American home buyers,” Marcelo explained. “I understand that they want attention to detail and on-time delivery.”
Marcelo and his brother Jimmy, who both grew up in Cotacachi, formed a partnership to create this development two years ago, buying a plot of land just outside of the city.
Marcelo has been a petroleum engineer for Exxon Mobil for 17 years, living in Washington, D.C. His brother Jimmy is an attorney working for the Ecuadorian government.
After nearly 20 years of the rat race, Marcelo decided to change careers and return home to his roots in Cotacachi and to get involved in Ecuador real estate. From the response of just about everyone who toured the house, he will be a huge success in his new career.
Linda, who is not that easy to please, was thrilled with very facet of the house, which features a garden tub in the master bathroom, adobe fireplaces, tiled kitchen with custom wood cabinetry, beamed ceilings and incredible views.
The adobe houses the brothers are building are unique in that they are entirely hand-made, with eucalyptus beams and adobe blocks made from earth directly from the property itself. The workers use no power tools in the construction.
When Marcelo and Jimmy heard that one of their relatives, a retired carpenter and furniture maker, was going a little stir-crazy in retirement, they opened a furniture-making shop and put him back to work creating wonderful pieces with the new equipment the brothers purchased. The result has been a win-win situation for everyone!
All of the furniture in Al’s house, and the windows and doors in future houses will be made in their shop. Al is now the proud new owner of custom solid wood furniture made to his specifications from pictures he sent to Marcelo.
The architect, Jorge Echeverria and his wife, on the left, Al DeLoach, the new home owner, and Marcelo, the builder.
Pricing for the houses starts at $45 per square foot, which includes a 1,500 sq. meter lot, or slightly more than 1/3 acre. The minimum house size of 1,500 sq. ft. gives an entry-level price of $67,500 for house and lot. When was the last time you heard of a 3,000 sq. ft. custom-built house that could be purchased, lot included, for $135,000?
The houses, which come in five floor plans and styles, are designed by architect Jorge Echeverria, who took a four-month intensive post-graduate course in Santa Fe, New Mexico, studying methods of adobe construction. Hence the Southwest influence in the design. The houses are specially designed to be earthquake resistant.
As an added benefit for buyers on a fixed income, the director of a bank in nearby Otavalo was present and told me that the bank is willing to provide 20-year financing to foreigners who want to purchase one of these houses.
Contact us if you want further details about financing.
The owner, Al, will be retiring from Exxon Mobil within the year and plans to move here to become a full-time resident of Ecuador. When he saw the house for the first time, just before the party began, he couldn’t hold back the tears. The Casa de los Suenos y Esperanzas, “the house of dreams and hopes,” was exactly as he had envisioned it. He was one happy camper!
Al was very delighted with his new house and custom furniture
A number of Cotacachi expat full and part-time residents, local indigenous families who helped in the building of the house from the nearby village of El Batan, and friends and family of Jimmy and Marcelos, gathered to welcome Al to his new home.
We were treated to a grand meal followed by the rousing music of a Mariachi band. Later, Marcelo and some of his friends entertained us with wonderful guitar music and songs as we danced the night away.
The newer residents of Cotacachi were thrilled at the unique social life that Cotacachi obviously offers to new purchasers of Ecuador real estate.
Contact Pro-Ecuador for more information about purchasing these properties
Continue reading this blog....
Click here to read this post at the new BLOG.
Colonia el Baton Opens its First House in Cotacachi
by Gary Phillips
Ecuador real estate is booming in Cotacachi. A new development here, Colonia El Batan, opened the first of 14 houses Feb. 17, with an inauguration party that had the new owner, Al DeLoach, in tears.
The 3,000 sq. ft. house was commissioned about 5 months ago with the builders and developers, Marcelo and Jimmy Penafiel. For Linda and me, having lived in Ecuador now for nearly a year and a half, something very exciting happened in our experience: The house was delivered to the owner on exactly the date that was promised several months ago!
“Having lived in the U.S., I understand the requirements of North American home buyers,” Marcelo explained. “I understand that they want attention to detail and on-time delivery.”
Marcelo and his brother Jimmy, who both grew up in Cotacachi, formed a partnership to create this development two years ago, buying a plot of land just outside of the city.
Marcelo has been a petroleum engineer for Exxon Mobil for 17 years, living in Washington, D.C. His brother Jimmy is an attorney working for the Ecuadorian government.
After nearly 20 years of the rat race, Marcelo decided to change careers and return home to his roots in Cotacachi and to get involved in Ecuador real estate. From the response of just about everyone who toured the house, he will be a huge success in his new career.
Linda, who is not that easy to please, was thrilled with very facet of the house, which features a garden tub in the master bathroom, adobe fireplaces, tiled kitchen with custom wood cabinetry, beamed ceilings and incredible views.
The adobe houses the brothers are building are unique in that they are entirely hand-made, with eucalyptus beams and adobe blocks made from earth directly from the property itself. The workers use no power tools in the construction.
A Master Carpenter Comes Out of Retirement
When Marcelo and Jimmy heard that one of their relatives, a retired carpenter and furniture maker, was going a little stir-crazy in retirement, they opened a furniture-making shop and put him back to work creating wonderful pieces with the new equipment the brothers purchased. The result has been a win-win situation for everyone!
All of the furniture in Al’s house, and the windows and doors in future houses will be made in their shop. Al is now the proud new owner of custom solid wood furniture made to his specifications from pictures he sent to Marcelo.
The architect, Jorge Echeverria and his wife, on the left, Al DeLoach, the new home owner, and Marcelo, the builder.
Pricing for the houses starts at $45 per square foot, which includes a 1,500 sq. meter lot, or slightly more than 1/3 acre. The minimum house size of 1,500 sq. ft. gives an entry-level price of $67,500 for house and lot. When was the last time you heard of a 3,000 sq. ft. custom-built house that could be purchased, lot included, for $135,000?
The houses, which come in five floor plans and styles, are designed by architect Jorge Echeverria, who took a four-month intensive post-graduate course in Santa Fe, New Mexico, studying methods of adobe construction. Hence the Southwest influence in the design. The houses are specially designed to be earthquake resistant.
As an added benefit for buyers on a fixed income, the director of a bank in nearby Otavalo was present and told me that the bank is willing to provide 20-year financing to foreigners who want to purchase one of these houses.
Contact us if you want further details about financing.
The owner, Al, will be retiring from Exxon Mobil within the year and plans to move here to become a full-time resident of Ecuador. When he saw the house for the first time, just before the party began, he couldn’t hold back the tears. The Casa de los Suenos y Esperanzas, “the house of dreams and hopes,” was exactly as he had envisioned it. He was one happy camper!
Al was very delighted with his new house and custom furniture
A number of Cotacachi expat full and part-time residents, local indigenous families who helped in the building of the house from the nearby village of El Batan, and friends and family of Jimmy and Marcelos, gathered to welcome Al to his new home.
We were treated to a grand meal followed by the rousing music of a Mariachi band. Later, Marcelo and some of his friends entertained us with wonderful guitar music and songs as we danced the night away.
The newer residents of Cotacachi were thrilled at the unique social life that Cotacachi obviously offers to new purchasers of Ecuador real estate.
Contact Pro-Ecuador for more information about purchasing these properties
Continue reading this blog....
Friday, February 15, 2008
A Question about Hugo Chavez – Opinion By Gary Phillips
The Pro-Ecuador BLOG has moved. Our news address is www.living-in-ecuador-blog.com
Click here to read this post at the new BLOG.
Pro-Ecuador.com received this question from a family considering purchasing a house here in Ecuador.
Dear Gary,
I have spoke recently with a Venezuelan women (father is Ecuadorian) and she suggests to wait on purchasing until Correa has the next election. I realize he loves Chavez and would like to imitate his leadership. What is your opinion of this?
My response:
I would not say that Ecuador President Rafael Correa loves Venezuelan President Hugo Chavez. I think that would be a gross overstatement. Correa recognizes that there is a leftist socialist movement that has been trying to be born through democratic means on this continent for 40 or more years.
This movement was quite violently repressed in the 60s and 70s by right wing dictatorships. In some cases, such as Chili and Argentina, democratically elected governments were overthrow. The movement went underground but is re-emerging in many South American countries as a popular democratic movement. In the last election, Correa's programs received 80% of the vote, and in Ecuador, everyone is required by law to vote.
The poor on this continent (and there are many) are determined that they are not going to be manipulated by world financial organizations, large business interests, or corrupt politicians any longer. Politicians are responding to this message. Correa is very smart. With a master’s degree from Belgium, a Ph.D. in Economics from the United States, and a European wife, I feel he is much smarter than Chavez. From what I can see, he also truly cares about his constituents.
From my perspective regarding Venezuela, the old-time power elite was much more entrenched in Venezuela than here in Ecuador. As a result, the poverty, crime and oppression was and is much more severe.
Linda and I lived in Venezuela for 9 months in 2001. It was like an armed camp. The poor were everywhere. Crime was rampant. It was obvious something had to change.
Such severe oppression and inequality allowed a leader with Chavez’s military backed strength to make dramatic changes. However, democracies tend toward equilibrium and even Hugo Chaves’ huge popular support is beginning to fade as seen in the rejection of his proposed constitutional reforms in December. Even a South American strongman must deliver basic goods and services, or he will lose his power.
Ecuador, on the other hand, has never sunk to the depths that Venezuela had. The people here have a stronger democratic tradition that allowed them to take to the streets and throw out the politicians that were obviously corrupt, or that didn't deliver on the promises that got them elected in the first place.
Ecuador has a long history of removing presidents that go against the will of the people. Now they have a president that seems to be doing their bidding, and he is still popular in most of the country although there are areas where there is strong opposition. This opposition is healthy for a democracy.
What is happening here in Ecuador is not a top down imposition. It is the result of a very grassroots movement of the people. Correa is a reflection and a product of that movement. Virtually everyone we talk to say, “the people elected him and the people with throw him out if he does not perform.”
It is very important to understand that in many countries in South America dramatic change is occurring. The old power structure made up of old families, old money, international corporations and world financial institutions is being replaced.
The people are saying, "enough,” and they are making change happen.
Frankly, I am very excited to be here and have the opportunity to watch and to a certain extent participate in what is happening. I do not feel threatened, rather I feel enlivened.
Yesterday we interviewed a young educated man, Cesar Morales, from Cotacachi about these subjects and more. This very important interview is published today in our newsletter. His perspective was incredibly helpful for us to understand what is happening here in this beautiful country. And our home, the Canton of Cotacachi, is leading the way with its particular form of participatory democracy.
And that’s today’s View from the Roof.
Continue reading this blog...
Click here to read this post at the new BLOG.
Pro-Ecuador.com received this question from a family considering purchasing a house here in Ecuador.
Dear Gary,
I have spoke recently with a Venezuelan women (father is Ecuadorian) and she suggests to wait on purchasing until Correa has the next election. I realize he loves Chavez and would like to imitate his leadership. What is your opinion of this?
My response:
I would not say that Ecuador President Rafael Correa loves Venezuelan President Hugo Chavez. I think that would be a gross overstatement. Correa recognizes that there is a leftist socialist movement that has been trying to be born through democratic means on this continent for 40 or more years.
This movement was quite violently repressed in the 60s and 70s by right wing dictatorships. In some cases, such as Chili and Argentina, democratically elected governments were overthrow. The movement went underground but is re-emerging in many South American countries as a popular democratic movement. In the last election, Correa's programs received 80% of the vote, and in Ecuador, everyone is required by law to vote.
The poor on this continent (and there are many) are determined that they are not going to be manipulated by world financial organizations, large business interests, or corrupt politicians any longer. Politicians are responding to this message. Correa is very smart. With a master’s degree from Belgium, a Ph.D. in Economics from the United States, and a European wife, I feel he is much smarter than Chavez. From what I can see, he also truly cares about his constituents.
From my perspective regarding Venezuela, the old-time power elite was much more entrenched in Venezuela than here in Ecuador. As a result, the poverty, crime and oppression was and is much more severe.
Linda and I lived in Venezuela for 9 months in 2001. It was like an armed camp. The poor were everywhere. Crime was rampant. It was obvious something had to change.
Such severe oppression and inequality allowed a leader with Chavez’s military backed strength to make dramatic changes. However, democracies tend toward equilibrium and even Hugo Chaves’ huge popular support is beginning to fade as seen in the rejection of his proposed constitutional reforms in December. Even a South American strongman must deliver basic goods and services, or he will lose his power.
Ecuador, on the other hand, has never sunk to the depths that Venezuela had. The people here have a stronger democratic tradition that allowed them to take to the streets and throw out the politicians that were obviously corrupt, or that didn't deliver on the promises that got them elected in the first place.
Ecuador has a long history of removing presidents that go against the will of the people. Now they have a president that seems to be doing their bidding, and he is still popular in most of the country although there are areas where there is strong opposition. This opposition is healthy for a democracy.
What is happening here in Ecuador is not a top down imposition. It is the result of a very grassroots movement of the people. Correa is a reflection and a product of that movement. Virtually everyone we talk to say, “the people elected him and the people with throw him out if he does not perform.”
It is very important to understand that in many countries in South America dramatic change is occurring. The old power structure made up of old families, old money, international corporations and world financial institutions is being replaced.
The people are saying, "enough,” and they are making change happen.
Frankly, I am very excited to be here and have the opportunity to watch and to a certain extent participate in what is happening. I do not feel threatened, rather I feel enlivened.
Yesterday we interviewed a young educated man, Cesar Morales, from Cotacachi about these subjects and more. This very important interview is published today in our newsletter. His perspective was incredibly helpful for us to understand what is happening here in this beautiful country. And our home, the Canton of Cotacachi, is leading the way with its particular form of participatory democracy.
And that’s today’s View from the Roof.
Continue reading this blog...
Thursday, February 14, 2008
Emergency Phone Numbers in Ecuador
The Pro-Ecuador BLOG has moved. Our news address is www.living-in-ecuador-blog.com
Click here to read this post at the new BLOG.
Question: What is the emergency phone number to call when in Ecuador (the equivalent of the American 911)?
Answer:
911 works from any telephone in Ecuador but this service is very different from the 911 service in North America. Ecuador's 911 is more of an emergency "information" service.
For emergencies in Ecuador dial:
131 - Medical Emergency
102 - Fire Emergency
101 - Police
Look for a clinic in your town before you need one. Find our their phone number and whether or not they have an ambulance service. Taxis are a great alternative so you might want to get the phone number of your favorite taxi driver and call him if you need help.
If you need any more information just let us know. Have a safe trip.
Click here to read this post at the new BLOG.
Question: What is the emergency phone number to call when in Ecuador (the equivalent of the American 911)?
Answer:
911 works from any telephone in Ecuador but this service is very different from the 911 service in North America. Ecuador's 911 is more of an emergency "information" service.
For emergencies in Ecuador dial:
131 - Medical Emergency
102 - Fire Emergency
101 - Police
Look for a clinic in your town before you need one. Find our their phone number and whether or not they have an ambulance service. Taxis are a great alternative so you might want to get the phone number of your favorite taxi driver and call him if you need help.
If you need any more information just let us know. Have a safe trip.
Wednesday, February 13, 2008
Ecuador Cost of Living
The Pro-Ecuador BLOG has moved. Our news address is www.living-in-ecuador-blog.com
Click here to read this post at the new BLOG.
We have several inquiries recently about the Ecuador cost of living. With inflation rampant in the U.S., (even if the CPI doesn't reflect it, those living on fixed incomes know) many are wondering if they can live more effectively in Ecuador.
The condos we are offering for sale offer a particularly good bargain for those who want to live here without much hassle. We received a message from M. from Canada as follows:
Hi,
Wondering about expenses and cost of living, utilities, condo fees, taxes %, parking etc? Thanks. M
Hi M,
We are not setting condos fees yet, waiting until we have sold the condos and can form a condo association. The amount of the fees depends on the services that the residents request. We do know that maintenance of grounds will be $20 per month per unit.
I do not expect the fees to go over $60 per month. As a purchaser of one of the condos, I will do my best to keep fees as low as possible. An added benefit is you can offer your unit as a vacation rental when you are not here, if you desire.
A resident in Primavera I paid his taxes last week. They were $36 for the year. A friend of ours who has a beautiful 12 acre country retreat and health care facility for sale on the market for $1.3 million said she paid her taxes the day before yesterday. The bill? $16. Contact us for more information on this property.
There is a parking lot directly between the two buildings. Each condo will be deeded one parking spot.
Linda and I spend approximately $150 per month for food. A week's supply of fresh and mostly organic fruits and vegetables is around $13. We sometimes find that we purchase too much, due to the low prices, and we end up throwing some away. We forget that the food here isn't irradiated! This picture is one weeks purchase. Cost: $11. Those organic red bell peppers cost $.10 each! We are in heaven!
Our electricity is $20 per month, water $2.50. Cooking and hot water gas costs $1.60 per tank. We use one tank every two months for cooking.
Roses are $2 for two dozen, other flowers are cheaper. Taxi's around town are $1 per trip. Bus to Otavalo is $.25, to Ibarra is $.45. A collective taxi to Quito is $7.50. (2 hours away) Automobile gas is $1.48 a gallon, and has been the same price ever since we arrived here.
Household furnishing insurance is $70 per year. High speed internet is $50 per month. Telephone service is $6.50 per month, and long distance calls in country are very cheap. Direct TV runs about $35 per months with a number of English channels. I have a Voice over Internet phone with unlimited incoming and out-going calls to the U.S. for $27 per month.
Dental care is inexpensive and good. I had oral surgery last week. An hour and a half in the chair cost $79. The next day, the dentist called to see how I was doing. Try that in the U.S.! Linda is getting a zirconia cap. Cost $240. Teeth whitening is $125 per mouth. haha. Cleaning $18. Here is a picture of Linda getting her prep work.
Medical care is also quite good in Ibarra, about 30 minutes from here. An excellent cardiologist lives here in Cotacachi. A very good Canadian chiropractor has an office in Ibarra. Office calls are $30. You can get a great (fantastic would be a better word) shiatsu massage by an American for $25 per hour in Otavalo, 10 minutes from here. Another good local masseuse will come to your home for $15.
A fine 2" thick Chateaus Briand steak in a white table clothed and black vested waiter local restaurant will cost $6.00. If you want to eat in a local comedor, you can get lunch all over town for $1.50. Or you can splurge and go to the 5-star La Mirage restaurant and Spa and get lunch for $15, a four course dinner for $35 and a luxurious massage for $80.
Excellent organic coffee is $3.45 per pound.
I get my hair cut from a local beautician for $2.
This should give you an idea of the Ecuador cost of living. Please ask if you have more questions
Click here to read this post at the new BLOG.
We have several inquiries recently about the Ecuador cost of living. With inflation rampant in the U.S., (even if the CPI doesn't reflect it, those living on fixed incomes know) many are wondering if they can live more effectively in Ecuador.
The condos we are offering for sale offer a particularly good bargain for those who want to live here without much hassle. We received a message from M. from Canada as follows:
Hi,
Wondering about expenses and cost of living, utilities, condo fees, taxes %, parking etc? Thanks. M
Hi M,
We are not setting condos fees yet, waiting until we have sold the condos and can form a condo association. The amount of the fees depends on the services that the residents request. We do know that maintenance of grounds will be $20 per month per unit.
I do not expect the fees to go over $60 per month. As a purchaser of one of the condos, I will do my best to keep fees as low as possible. An added benefit is you can offer your unit as a vacation rental when you are not here, if you desire.
A resident in Primavera I paid his taxes last week. They were $36 for the year. A friend of ours who has a beautiful 12 acre country retreat and health care facility for sale on the market for $1.3 million said she paid her taxes the day before yesterday. The bill? $16. Contact us for more information on this property.
There is a parking lot directly between the two buildings. Each condo will be deeded one parking spot.
Linda and I spend approximately $150 per month for food. A week's supply of fresh and mostly organic fruits and vegetables is around $13. We sometimes find that we purchase too much, due to the low prices, and we end up throwing some away. We forget that the food here isn't irradiated! This picture is one weeks purchase. Cost: $11. Those organic red bell peppers cost $.10 each! We are in heaven!
Our electricity is $20 per month, water $2.50. Cooking and hot water gas costs $1.60 per tank. We use one tank every two months for cooking.
Roses are $2 for two dozen, other flowers are cheaper. Taxi's around town are $1 per trip. Bus to Otavalo is $.25, to Ibarra is $.45. A collective taxi to Quito is $7.50. (2 hours away) Automobile gas is $1.48 a gallon, and has been the same price ever since we arrived here.
Household furnishing insurance is $70 per year. High speed internet is $50 per month. Telephone service is $6.50 per month, and long distance calls in country are very cheap. Direct TV runs about $35 per months with a number of English channels. I have a Voice over Internet phone with unlimited incoming and out-going calls to the U.S. for $27 per month.
Dental care is inexpensive and good. I had oral surgery last week. An hour and a half in the chair cost $79. The next day, the dentist called to see how I was doing. Try that in the U.S.! Linda is getting a zirconia cap. Cost $240. Teeth whitening is $125 per mouth. haha. Cleaning $18. Here is a picture of Linda getting her prep work.
Medical care is also quite good in Ibarra, about 30 minutes from here. An excellent cardiologist lives here in Cotacachi. A very good Canadian chiropractor has an office in Ibarra. Office calls are $30. You can get a great (fantastic would be a better word) shiatsu massage by an American for $25 per hour in Otavalo, 10 minutes from here. Another good local masseuse will come to your home for $15.
A fine 2" thick Chateaus Briand steak in a white table clothed and black vested waiter local restaurant will cost $6.00. If you want to eat in a local comedor, you can get lunch all over town for $1.50. Or you can splurge and go to the 5-star La Mirage restaurant and Spa and get lunch for $15, a four course dinner for $35 and a luxurious massage for $80.
Excellent organic coffee is $3.45 per pound.
I get my hair cut from a local beautician for $2.
This should give you an idea of the Ecuador cost of living. Please ask if you have more questions
Sunday, February 10, 2008
Estate Planning for Foreigners in Ecuador
The Pro-Ecuador BLOG has moved. Our news address is www.living-in-ecuador-blog.com
Click here to read this post at the new BLOG.
One of our readers recently asked, "what happens if a foreigner dies in Ecuador?" This is a good question so I asked Pro-Ecuador's Martha Perez. Martha worked at the Ecuadorian Embassy in Washington, D.C. for many years and has friends and associates working in Embassies throughout Quito.
Martha says:
"The Embassy of your home country is available to coordinate with your hiers. If you are alone in Ecuador, the local authorities will contact your Embassy for assistance. I recommend that all foreigners register with their Embassy. This way, the Embassy has important contact information in the event of an emergency.
Here are several websites for registration:
Canadian citizens click here
US citizens click here
British citizens click here
If you hold assets in Ecuador it is a good idea to have an Ecuadorian attorney create a will in Spanish & English. You can make arrangements for your attorney in Ecuador to process your will on behalf of your heirs.
If you are planning to purchase property valued over $500,000 USD, I suggest that you consider holding this property as a company. The government of Ecuador may implement hefty estate tax penalties for "high value property" so it would be a good idea to avoid this issue altogether."
Click here to read Martha's bio.
Click here to read this post at the new BLOG.
One of our readers recently asked, "what happens if a foreigner dies in Ecuador?" This is a good question so I asked Pro-Ecuador's Martha Perez. Martha worked at the Ecuadorian Embassy in Washington, D.C. for many years and has friends and associates working in Embassies throughout Quito.
Martha says:
"The Embassy of your home country is available to coordinate with your hiers. If you are alone in Ecuador, the local authorities will contact your Embassy for assistance. I recommend that all foreigners register with their Embassy. This way, the Embassy has important contact information in the event of an emergency.
Here are several websites for registration:
Canadian citizens click here
US citizens click here
British citizens click here
If you hold assets in Ecuador it is a good idea to have an Ecuadorian attorney create a will in Spanish & English. You can make arrangements for your attorney in Ecuador to process your will on behalf of your heirs.
If you are planning to purchase property valued over $500,000 USD, I suggest that you consider holding this property as a company. The government of Ecuador may implement hefty estate tax penalties for "high value property" so it would be a good idea to avoid this issue altogether."
Click here to read Martha's bio.
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