Living in Ecuador

New Living in Ecuador Blog

2008-03-03T10:59:00.002-05:00

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Taxes in Ecuador

2008-02-28T19:36:00.005-05:00

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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.

Flooding in Ecuador

2008-02-25T08:36:00.005-05:00

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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."

A Saturday Visit to the Otavalo Market

2008-02-24T16:22:00.009-05:00

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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.

The Downside of Living in Ecuador?

2008-02-20T18:53:00.004-05:00

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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.

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Costs For a Wedding in Ecuador

2008-02-20T11:44:00.005-05:00

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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

2008-02-20T11:10:00.004-05:00

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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

2008-02-20T10:17:00.004-05:00

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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

Ecuador Real Estate Feature

2008-02-18T15:16:00.011-05:00

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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....

A Question about Hugo Chavez – Opinion By Gary Phillips

2008-02-15T16:16:00.010-05:00

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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...

Emergency Phone Numbers in Ecuador

2008-02-14T10:53:00.004-05:00

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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.

Ecuador Cost of Living

2008-02-13T07:16:00.011-05:00

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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

Estate Planning for Foreigners in Ecuador

2008-02-10T12:01:00.001-05:00

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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.

Use Your Credit Card For Purchases in Ecuador

2008-02-09T14:36:00.002-05:00

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Note: This post applies to our readers with US based credit card accounts.

If you have spent any time outside of the United State since 1996 you have most likely received an invitation to participate in a class action lawsuit regarding foreign currency exchange fees. Link here.

The currency of Ecuador is the United States dollar. No currency exchange means no foreign currency exchange fees. I use my credit card for almost everything in Ecuador and if dinner costs $20, that is exactly the amount that is charged to my credit card.

You can use credit cards in Ecuador for almost everything from buying movie tickets to paying your telephone bill.

Ecuador Volcano Eruption

2008-02-08T22:09:00.001-05:00

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Tungurahua Volcano near the tourist town of Banos is blowing off steam and ash again in an eruption that so far is smaller than the eruption that occurred in 2006. We have had several questions as to whether we here in Cotacachi are feeling any effect from the explosion, and the answer is no, almost.

I talked to Jorge, the builder of Primavera II condominiums today and he told me that his sister called him late at night on Wednesday and asked him if he had heard anything. She woke up in the middle of the night to the rattling of the windows in her house. Jorge hadn't heard anything, but turned on the TV in time to see news about the eruption.

Jorge said that even in 2006, when there was a major eruption, there was no effect in Cotacachi. Then he made a comment that I really appreciated.

He said, "we live in paradise, between two major rivers that carry the water away so we never have floods, and our two volcanoes are extinct." Linda and I have lived here for more than a year and have never experienced a major storm, except for a couple of hard rains.

I saw a volcano eruption in Guatemala in 1974. It was one of the highlights of my life. Such incredible power and magnificence was hard to believe. It was one of those experiences I remember as if it happened yesterday. But I certainly don't want to live near one!

Questions About Moving to Ecuador: Can I Buy a Little Piece of Land and Build a House?

2008-02-07T18:00:00.001-05:00

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We received this letter from a Canadian woman. The idea of moving to Ecuador sounds great for many people. Lots of people are inquiring about buying some land in the country and building a little house. But there are somethings that potential Ecuadorian residents need to understand. Read Linda's response below.

Hello,

I am now a single mother. My kids are 3,4,8. I am planning on moving to Ecuador from Canada this summer. My children will be 4,5,9. I want to move into a rural area and be able to have a property to grow my own vegetables, and keep a pony etc. at the same time, it has to be close to a school. I cannot afford a luxury house. Can you recommend an area?

Elizabeth

Hi Elizabeth,

Canada to Ecuador. That will be quite a change! A number of Canadians come to Cotacachi to either live or vacation. We found a rent house for a Canadian couple from Calgary who spent 6 mos here last winter and now are back for another 6 months. They don't speak Spanish at all but somehow are managing to make lots of new friends and are having a wonderful time.

If you are single, (or a couple, for that matter) there are a few precautions I would like to get out of the way right up front. Ecuador is not Canada. Certain protections are needed no matter where in the world you live. And in this part of the world and in this particular culture, a single mother living alone with her children out in the country would need to have someone she could look to for help and information.

The unspoken rule here, as in other Latin American countries we have lived in, is that if you leave something unprotected, it is fair game. So people here have gates, walls around their property, dogs, and/or guardians. You can hire a guard, have an electronic alarm system or have a guardian or caretaker live with you or live near others whom you trust. This seems to work quite well.

What doesn't work is for a gringo to move here, buy lots of tempting appliances and furniture, and then leave the house unguarded. That's why many choose gated communities. So consider these things when choosing a property in addition to the requirements you have for the physical land, like water, trees, etc.

Now let's get to the good stuff!

Ecuador is great! In Cotacachi where we live, you can grow just about anything, except tropicals, which are brought from the coast or jungle---bananas, exotic fruit, nuts. So you can have a wonderful garden here! Ecuador is a small country so nothing is very far away and arrives nice and fresh.

In this area, there are many options, including just renting until you feel comfortable and can take your time looking around to find the perfect land. However, that would require some advance notice since furnished apartments or houses are few here. Let us know when you are coming and we may be able to help you find something.

We know of some land near town within walking distance and near a gated community of other gringos that might be ideal for you. You can build your own house and have a pony.

There are not many real estate agents in Ecuador and licensing is not required. People often sell only by word of mouth or put small signs in their windows or write Se Vende (for sale) on their walls. It would be best to have an agent or someone representing your interests. We can do that for you by acting as your buyer's agent to find property, negotiate a fair price and handle the contracts and paperwork.

My recommendation would be to do lots of research about Ecuador. Read all you can. Read our website and others, check the Ecuador news, (we have news on our site running constantly) decide on the areas you want to visit and when you find that perfect area, then look for land.

Unless you already speak Spanish and have a good working knowledge of the culture, you will probably find it is not that easy. Hopefully, we will be able to help make your move to Ecuador easier.

Love,
Linda

A Cell Phone in Ecuador and the U.S.

2008-02-04T12:23:00.001-05:00

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Cell phones are ubiquitous companions. I don’t like having one but the convenience and utility are undeniable.

Living in two countries presents a challenge because cell phone contracts tend to restrict our options. We have discovered an optimal solution for those who spend time in Ecuador and the United States.

Terminate Your Expensive U.S. Cell Phone Contract

With documented proof of your move to Ecuador most U.S. cell phone companies will terminate your contract without any fees. You will need to provide any of the following documents:

• Ecuadorian Driver License
• Cedula (National ID Card)
• Real Estate Lease Agreement
• Utility Bill
• Property Deed

Activate a Pre-Pay Plan in the United States

Let’s look at Verizon as an example. If you already have a Verizon phone you can activate the pre-pay option without a connection fee (just ask to have the fee waived). You must add $15 per month to keep the phone activated. If you don’t use the phone you are not charged and your balance only expires if you fail to add funds each month.

Charges are as follows:

Click here to get more information on this plan.

Purchase a Cell Phone in Ecuador

You can purchase a pre-pay cell phone in Ecuador. Phones start at $50 and pre-pay cards are sold just about everywhere. If you are away from Ecuador for more than 3 to 4 months your number MAY expire. If this happens you will need to pay an activation fee of about $5.

Do you know of a good solution for counties other than the United States? Please post your solution as a comment to this blog.

Hotels in Cotacachi

2008-02-03T22:04:00.001-05:00

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Several readers have inquired about hotels in Cotacachi. We are preparing a web page for pro-ecuador.com with reviews, photos, and prices. But until that is up, I thought I would give a brief preview here to let readers know that there are several choices in a variety of price ranges.

Two hostels in Cotacachi offer good value at very reasonable prices. Hostel Tierra Mia on Bolivar just off leather street charges $7 per person. Hostal Posada Munaylla, on the corner of leather street (Diez de Agosto) and Sucre has beds for $8 per person. When we were interviewing the owner at the $8 hostel, a middle-aged American woman walked in who just arrived from a bus trip across Columbia. After a little bargaining, she got her room for $5.

Both hostels have clean, comfortable rooms with hot water and private bathrooms. Don't worry about reservations as there are usually plenty of rooms. Both hostels are near leather street.

The next step up is the Hotel Sumac Huasi, belonging to our good friend Jorge Quilumbaqui, the builder of Primavera Condominiums. This very nice hotel offers room and breakfast for $25.62 for a double per night. The rooms are clean with private bath and local television (Spanish). He told us he will begin a room by room cosmetic touch up very soon, as well as painting the outside.

A newly constructed hotel, El Arbolito, recently opened just next to the bank. It is nicely decorated, and the owners are friendly and helpful. Price is $25 per couple, or $15 per person in twin beds. They also have cable television. This is an excellent value, and completely comfortable, although the beds are standard double and not queen size. If you want good reasonably priced accommodations, you can't go wrong with El Arbol.

Two hotels are just on the edge of town. The first is the 4-star Hotel Rancho Santa Fe Garden and Resort, a 44 room hotel with a dining room that seats 400. It has a swimming pool, tennis courts, and other amenities. Price is 593-6-291-6338.

Then at the entrance to Cotacachi is the El Paradiso. This is another newly built hotel and resort. El Paradiso is a lovely facility on 6 acres of land. It has several hotel rooms, lots of bungalows that can be rented for longer term, a 9 hole mini-golf course and a very nice, high quality restaurant in a beautiful setting. Rooms in both of these hotels are in the $45 dollar range. email: paradiso.ecauador@gmail.com. More specific details will be given in our web page.

El Meson de las Flores is near the town square and next to the church. It is a restored colonial home. Rooms are mostly remodeled, many with king beds. Room prices of $72 and $84 (tax included) include an excellent breakfast in the courtyard. Wireless internet and a free VOIP phone to call North America are nice amenities. They also have a full service restaurant. We recommend asking for rooms off the street. 593-6-291-6009

La Mirage, a 5-star resort and Spa offers magnificent rooms and gardens complete with all meals for $350 to $750 per night. The spa has 19 massage therapy modalities. This is a very special treat. Meals are $35 for dinner and $15 for lunch. Don't miss out on this, even if it is only to have lunch.

Two ancient haciendas are sure to thrill history buffs. Hacienda Pinsaqui is just at the entrance to Cotacachi on the Pan-American Highway. Hacienda Cusin is just outside of Otavalo. Both are delightful places to stay or to have a meal.

Wherever you choose to stay while in the Cotacachi area, you can be certain that the friendly staff and owners will do everything possible to make your visit memorable. Make sure to tell them that you found them through Pro-Ecuador.com.

Ecuador Customs and Immigration Forms

2008-01-30T11:07:00.001-05:00

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Before your trip to Ecuador you might like to take a look at the forms for customs and immigration. You can click on these images for a larger view.

This is the immigration form:

This is the customs form:

These forms are partially complete as an example only. If you have any questions please let us know.

Permiso de Salida No Longer Required

2008-01-28T23:11:00.001-05:00

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The “Permiso de Salida” or “permission to exit the country” is a document that was previously required in order to leave Ecuador. This document was issued by the national police and was required for both residents and citizens of Ecuador.

Jason and I went to the Subjefatura de Migracion in Santo Domingo today to renew Jason’s Censo for this year and we found the following paper posted in the office:

The English translation is:

“To be published in the official registry of day December 29th 2007, due to the unconstitutionality of article 39 number 2 of the migration law, the sale of permissions to exit the country is suspended and is no longer a necessary requirement.”

This means that both citizens and residents of Ecuador are no longer required to get this document in order to leave the country. This makes preparing for a trip much easier.

Censo for Residents of Ecuador

2008-01-28T22:19:00.001-05:00

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The “Censo” or “Certificado de Empadronamiento” is a document that needs to be renewed each year for residents of Ecuador. Your first experience with the “Censo” will most likely be associated with your resident visa process because this document is a requirement for the “Cedula” (national I.D. card).

The Censo expires one year from its issue date. If you are not in Ecuador when the document expires you are free to apply for renewal upon your return. I just entered Ecuador with an expired Censo and received a renewal without a hassle.

You should apply for the Censo at the “Migracion” department of the national police in the capital of your province.

Censo renewal requirements are very simple:

-Passport
-Copy of passport first page and visa page
-Current Censo
-Cedula
-Copy of Cedula (front & back)
-One photo
-Utility bill or lease agreement to prove place of residence
-$5

Don't worry about making copies in Ecuador. Copy machines are very easy to find.

It's a good idea to visit government offices early in the week and between 11:00 A.M. to 12:00 P.M. Early morning is typically busy until people need to return home to prepare lunch, the most important meal in Ecuador.

Here I am at 11:00 A.M. Monday morning waiting for my Censo.

Even if you do not become a resident of Ecuador you may find yourself spending some time in government offices. Just be patient and bring a good book. I had a book ready and never got to read it, too bad!

Update on Ecuador Residency Visa--Police Check

2008-01-28T09:16:00.001-05:00

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I checked with a few sources today and found out that a police report is necessary for each person wanting to apply for an Ecuador Residency Visa. To get this police check, go to your local police station or state highway patrol and request them to run a back ground check. This document will also need to be validated by the Ecuadorian Consulate. (see post below)

Children under the age of 18 need a statement of good conduct written by the superintendent of principle of the school they attend. This will need to be notarized locally and validated by the Consulate.

Question regarding Ecuador Residency Visas

2008-01-27T11:00:00.001-05:00

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Pro-Ecuador.com received the following question about Ecuador residency Visas:

We are planning to move to Ecuador in a few months. I'm 51 and retired; my wife is 49. We'll be bringing 6 of our children with us. Should I start the retiree resident visa process at the consulate here or wait until we get to Ecuador? Also, my daughter and her husband and their children want to join us. What is the easiest way for them to get residency?

Thank you,

R

MY REPLY:

Hi R,

Wow, sounds like a mass exodus! Great! Do you have a location picked out yet?

You will need to get your Ecuador residency visas here in Ecuador. Most people moving to Ecuador get either a retirement visa or a real estate visa/investment visa. There are other options, but I will not go into them here.

The head of the family gets the primary visa, (or the person with the retirement income) then each dependent receives his/her visa based on the primary visa. Each person receives a personal residency card, called a cedula. You also get a card called a censo. Dependents can include children, spouses of children, brothers and sisters, parents, and grand children

For the Ecuador retirement visa, the primary applicant needs $800 per month documented income, plus $100 for each of the dependents. For the Ecuador investment visa, the applicant can purchase real estate worth $25,000 plus $500 additional for every dependent.

Or you can deposit the same amount in an Ecuadorian bank CD or Ecuador government bonds deposited in the Central Bank of Ecuador for a one year-term, renewable each year. Please do not quote me on the above figures, as rules tend to change from time to time, but you get the idea. Check with an immigration attorney for the current details when you are ready. Although an immigration attorney is not absolutely necessary, I strongly recommend it.

You needs to get some documents together in the states and bring with you. They are:

1. Certified copies of your marriage licenses, and marriage licenses of your dependents.

2. Birth certificates of the children.

3. Two passport-size photos of each person, but it is likely cheaper to get them here than in the states.

4. Police background checks are required. Go to your local police station or state highway patrol and ask them to run a backgound check. Children under 18 need a certificate of good conduct from their school.

5. Official documents proving your retirement income.

You may also need to be tested for HIV and get a health certificate here, which can be done at most any hospital or clinic here in Ecuador for a very low price.

This part is important: Each document needs to be certified. You also need to have them validated by the nearest consulate in the states. The consul simply takes your documents, stamps them, and gives them back. A year ago it cost us $10 for each document. That fee could be different now. All documents must be translated into Spanish and signed by a certified translator. The translation and validation are important steps and must be accomplished before you leave!

You have 6 months from the time you arrive in country to receive your residency visa. You should start the process at least two months before your passport tourist stamp expires. And with the number of people you are talking about, I certainly wouldn't cut the time short.

Each person holding an Ecuador Residency Visa can only be out of the country for 90 days each year for the first two years. Don't go over the time limit by even one day or your resident visa will be canceled. After the first two years, you must return to Ecuador at least once every 18 months. My visa is good until 2019.

Reminder: All of the above items are subject to change. Please check with your attorney for accurate details at the time you are ready to apply.

Hope this helps,

Best,

Gary

First Time Visitor to Ecuador has Questions about Customs

2008-01-24T16:18:00.002-05:00

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We received this inquiry from one of our readers about a first time visit to Ecuador.

Dear Pro-Ecuador Staff:

We are considering a visit to Ecuador and wondered about any difficulty getting through customs/immigration. Do they open and check the items in your suitcases? We have never traveled out of the U.S. so we are pretty non-knowledgeable of customs, etc.

We are a family of 4, 2 adults and a 5-year-old boy and 11-year-old boy. I have read about the friendly people of Ecuador so I would hope it applies to the customs folks as well when it comes to tourists.

Lastly, is it advisable to rent a car at the airport, or take a bus to Cotacachi (which is our main place of interest at present). Would it be better to line up something with a tour company versus driving (or trying to drive) ourselves around the country?

Thanks for your help.

My Reply:

Hi Mac,

Thank you for your inquiry. Glad you are jumping into the excitement and fun of international travel. It will be especially great for your children. I took my twin daughters to Mexico when they were four years old. Now they are 29 and they still remember the trip as one of the highlights of their growing up years.

Ecuadorian customs are very easy. Most of the time, people just walk straight through. Occasionally, you get selected for a random bag check, but even if you do, they just open the bag, have a quick look, and send you on your way.

There are rental cars available and that certainly is an option if you don't mind driving in a strange country without knowing the roads. If you decide to do that, make sure you purchase a good map in the U.S. (see Jason's blog post below about which map to buy). However, public transportation here is very inexpensive, readily available, and a good option. Even at that, I would still recommend purchasing the map, as it is nice to see where you are.

Most international flights from the U.S. arrive in Quito in the evening, so you will need to reserve a hotel in Quito. We can help you reserve a good one, or you can select your own at www.in-quito.com. We would recommend that you spend at least a day or two in Old Town Quito. It has wonderful architectural heritage, some nice colonial hotels, and good restaurants.

Let us know where you will be staying and we can send a taxi in the morning from Cotacachi to pick you up. Depending on where you stay in Quito, the taxi will cost will be around $50 - $55. That would be better than taking a bus on your first time out, especially with all your bags.

We will have a page posted about Cotacachi hotels in a few days, so watch for it. There are several good choices in a variety of price ranges.

We have a good friend with a tour company in Quito. He specializes in one, two and three day tours for small groups, as few as two people, to various locations. They are very reliable and would be a better choice, I think, than renting a car. Less costly, and certainly less troublesome than trying to find your way around. Let us know what you decide, and when, and we can connect you up with him.

I am excited that you are taking this step with your family. I know you will be thrilled with Ecuador. For the value of the dollar, there is not a better place in the world to travel to right now. Make sure you sign up for our newsletter at www.pro-ecuador.com, to keep up-to-date on all of our latest mailings about interesting things about Ecuador.

Best regards,
Gary

Premier Home for Sale in Cotacachi

2008-01-24T12:33:00.001-05:00

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A home in San Miguel Homes and Gardens, just outside of Cotacachi, came on the market last week. This one is a gem! The couple selling it is not very happy about it, but health problems are making it difficult to move back and forth from Canada.

It's certainly not good when this happens, but you know the way it works, someone's misfortune is often another's good fortune.

The house is 2,400 sq. ft, with a lot that is almost 2/3 of an acre. It is located in the San Miguel, a gated community with 34 lots, nearly all of which are sold to North Americans. San Miguel backs up to the famous five-star La Mirage Resort and Spa. When the owners are not there, the house has been renting for $750 per month.

The $112 per month maintenance fee includes twice weekly maid service (including laundry) complete yard and garden service, armed security, exterior maintenance of the house, and even a person who comes around nightly to bring wood and light your fireplace! There are options to the maintenance fee depending on the services you choose.

This is one of three premier lots in San Miguel, on the edge of the development backed up to a creek. It is being sold fully furnished, which is a decided asset here in Ecuador. Buying furnishings is a big task. And the front fountain is ideal feng shui for bringing wealth into your life.

If you are interested in learning more about this fine house, please contact me at gary@ecuadorEDG.com.

Goal to Eliminate Child Malnutrition in Cotacachi Canton

2008-01-20T22:46:00.001-05:00

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Linda and I had a wonderful visit today with Teresa Jaramillo and her husband Manuel Pazmino. Teresa is the director of public health in the Canto of Cotacachi.

Cotacachi Canton (like a county) is the largest in the province of Imbabura. A few years ago, the canton inaugerated a system of participatory democracy that is becoming a model for the rest of the country.

One of the major goals Cotacachi citizens have selected in their annual goal setting meeting is the complete elimination of child malnutrition in the province. It was so exciting to see the enthusiasm Teresa has for her job, and for this program.

There is a great volunteer opportunity here for anyone who would like to participate in this effort. Teresa would like to have volunteers in three areas 1) nutritionists, 2) nurses, and 3) doctors with nutrition backgound.

The Canton received a $180,000 two year grant from the Spanish Government to help accomplish this goal.

Watch this blog, and sign up for our newsletter at http://www.pro-ecuador.com for several upcoming articles about health care in Cotacachi.

If anyone is interested in getting more information about the volunteer program, please contact me at our website.

Mechanic in Quito

2008-01-20T11:43:00.001-05:00

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Pro-Ecuador reader question:

My wife and I are living in Quito, and are wondering if you know of a good mechanic in Quito that speaks English? Thanks again, you have some amazing information here!

Pro-Ecuador response:

We recommend that you try ExiAuto located at Avenida La Prensa 4235 and V de Castro. Ask for Alfonso Silva. The telephone number is 229-4440. Mr. Silva should speak some English, at least enough to discuss about car repair. Make sure to tell him that Martha Perez sent you.

If you do visit this mechanic please share your experience by posting a comment to this blog.

Map of Ecuador

2008-01-16T22:49:00.001-05:00

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I travel everywhere with my Berndtson & Berndtson laminated map of Ecuador. People always ask where to buy one. Unfortunately, I have not been able to find a good quality laminated map for sale in Ecuador.

I have been all over Ecuador and still use my map all the time. I recommend Berndtson & Berndtson products.

Click here to find a distributor in your area.

Click here to purchase a map of Ecuador

Correa Vows to Restructure Finances

2008-01-15T22:47:00.001-05:00

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Ecuadorian president Rafeal Correa continues to push for change. Here are a few selections from a Bloomberg article (link at end of post).

Jan. 15 (Bloomberg) -- Ecuadorean President Rafael Correa said he wants to reorganize the country's administration and finances to reduce inequalities and fight corruption.

Correa said plans to build new hydroelectric plants and improve the country's highways would reduce lop-sided income distribution and poverty.

He pledged to start construction of four major hydroelectric projects in the first four months of this year, and invest $1.5 billion in roadway construction in 2008, affecting 28 percent of Ecuador's road network. With the completion of planned power plants, Ecuador could become self- sufficient in electricity by 2013, he said.

Highways in the highlands are generally up to North American standards and both Quito and Guayaquil have recently completed major road construction projects. I am especially impressed with Guayaquil's newly renovated highway system.

The planned roadway investment this year should open many parts of the Ecuadorian coast for economic development. Highways connecting Quito to Guayaquil and the coast are long overdue for a makeover.

I love driving through Ecuador and have been waiting to hear this good news for a long time. Thank you Ecuador!

Click here to read the entire article from Bloomberg

Moving to Ecuador Orientation Tours

2008-01-14T08:58:00.001-05:00

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Here's a letter from a reader who is considering the possibility of moving to Ecuador. This ties right in with the Moving to Ecuador Orientation tours we are planning. It is quite amazing how many people are in the same frame of mind as this reader.

Dear Gary,

My husband and I have been spending literally hours on your website lately. Very informational, great reading! Thanks so much for sharing your passion and knowledge of Ecuador. We are seriously looking for retirement opportunities where we can escape the cold winters of the Colorado Rocky Mountains and the associated high cost of living. After much research, we think Ecuador is the answer.

We plan to visit Ecuador in the fall of 2008 and would be interested in making personal contact with you and any other ex-pats who have become full-time residents of Ecuador. Please respond if you would be interested in meeting with us. Also would be open to any week-long organized tours that you either put together or recommend. Our initial trip will probably be for two weeks with an organized tour for the first week, and on our own for the second.

My Reply

Hi J,

Spending hours on our web site? Wow!! It is exciting and rewarding for us that people are actually reading our creation. Can you imagine, yesterday we had inquiries from Afghanistan and Turkey? Yes, we would love to meet you when you arrive. Just let us know.

Regarding your question about tours, we are putting together as we speak "Moving to Ecuador Orientation" tours. These tours are designed for people just like you who are considering moving to Ecuador either part or full-time, and could use a bit of initial hand holding as you dip your toes into the waters of ex-pat living.

The tours include informal classes and discussions about expat life in Ecuador. We will cover things such as visas, legal issues, medical care, cost of living, property ownership, real estate opportunities, rentals, public transportation, auto ownership, insurance, etc. along with travel to the most likely retirement spots in Ecuador.

The Cotacachi/Ibarra/Otavalo area, the Cuenca area, the coastal regions, are on the itinerary and perhaps, if those who sign up are interested, we can include Vilcabamba, the famous valley of longevity in the south of Ecuador.

Visits with people who have already made the move are included. These are the best people to answer your questions, because they have done what you are contemplating.

Of course, there will be ample opportunity for sampling Ecuadorian culture and food. Visits to some of the primary tourist sites will be highlighted.

We expect these tours to be relatively small and informal, and will be to a certain extent tailor-made to fit the desires of the people who sign up.

Let us know your tentative time frame for a visit, and we will put you on a tour mailing list. Also, tell your friends who may be interested. Watch the newsletter (sign up at http://www.pro-ecuador.com) and blog for formal date announcements.

Best,
Gary

Carnival in Ecuador

2008-01-14T00:25:00.002-05:00

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Carnival 2008 in Ecuador will be February 4th and 5th. Celebrations will take place during the entire long weekend with the most intense fiestas on Sunday and Monday.

While a majority of Ecuadorians will go to the beach, excellent celebrations can be found in the highlands. My choice would be Ambato for the Fiesta de las Flores y las Frutas (celebration of flowers and fruit). Each city in Ecuador has a yearly celebration (las fiestas) and Ambato’s celebration ends during Carnival. This double celebration can be very exciting!

Every beach in Ecuador will be alive with activity during Carnival. Families and friends will party day and night from Saturday to Tuesday.

Carnival beaches for northern Ecuador and Quito are Tonsupa, Atacames and Same. Beaches for southern Ecuador and Guayaquil are Playas, Salinas, Canoa, Manta, or Montanita.

Don’t forget to make reservations for your stay at the beach because hotels will be sold out well in advance.

Ecuador Immigration: families return home

2008-01-11T17:09:00.000-05:00

Pro-Ecuador Insiders' Newsletter, Issue #005

by Gary Phillips

Ecuador immigration flows both ways. We received the letter below from an Ecuadorian woman living in Canada who is considering moving to Ecuador. I decided to share it with our readers, along with my response. I believe this woman and her family represent an immigration movement that will gain strength in the coming months and years.

In many ways, North America, especially the U.S., is turning its back on immigrants. There seems to be a sense among many U.S. citizens that there is not enough to go around and the immigrants must go. This will have a two-fold effect.

Click here to continue reading this Pro-Ecuador Newsletter

Kichwa Christmas : Living in Ecuador

2008-01-11T17:01:00.001-05:00

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Gary and Linda just posted an excellent report of their Kichwa Christmas experience near Cotacachi, Ecuador.

"Living in Ecuador offers opportunities to visit remote indigenous villages. This is a story of a Kichwa Christmas visit. "

Click here to view pictures and read about their experience.

How to Spell Ecuador

2007-12-31T15:54:00.001-05:00

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Pro-Ecuador Reader Comment:

Just curious. Why do you spell Equador with a "c" instead of a "q" ?

Jason´s Response:

The Republic of Ecuador, or just Ecuador, is spelled with a “c” in Spanish. The name “Ecuador” comes from the word “equator” meaning “an imaginary line (or one drawn on a map etc) passing round the globe, at an equal distance from the North and South poles.”

The “q” finds its way into the country name in the French language as “Equateur.”

Happy new year!

Florida, Montana, or Ecuador???

2007-12-31T12:48:00.000-05:00

I just finished talking to a friend in Montana, the land of cold, snow, and ice. He shared with us that he had just been delivered a wallop on the side of the head from the sub-prime real estate crisis.

Then he gave us a piece of news that was even more shocking to us. He said, "lots of retired people are moving out of Florida and coming to Montana. They are sick of the heat, the threat of hurricanes, and the high cost of living."

Well, as an old Minnesota boy, I shuddered in my jeans at the thought of moving back to the cold climes of the north country, just to get away from things I don't like in Florida (or Phoenix, or McAllen where my relatives go to in the winter) or you name it.

I wonder how many of those Floridians are aware that just 3 1/2 hours south of them is a country that has no hurricanes and no really hot weather except in the jungles. What it does have are miles and miles of secluded beachfront and a cost of living that allows the two of us to live on a monthly budget for rent, telephone, food, high-speed internet and utilities, for less than $550.

When I want to splurge, I go down to our favorite local restaurant for a prime cut of Argentinian filet mignon about 2 1/2 inches thick or fresh river trout stuffed with a delicious shrimp sauce for less than $6 with tip. And if you are a beer drinker, a liter bottle of fine pilsener is $1!

Yes, I'm talking about Ecuador. Check out our website, www.pro-ecuador.com. Health care is very good and very inexpensive. Dental work is about 1/5 of what it is in the states. Ecuador is a land of clean water, pure air, wide open spaces and incredible biodiversity.

It's president is well-educated with a PhD in economics, a European wife and a progressive, independent course of leadership set for his country. We chose to live in Ecuador because after over a decade living and working in South America, Ecuador feels the safest to us and offers more of the elements we consider important for an excellent quality of life.

This is our favorite vegetable lady. Many of the items she sells she grows in her own garden. We go to the market every Sunday and buy all of our fruits and vegetables for the week, about $12 dollars worth for more than we can carry. We hired a tricycle cargo guy to carry them home for us for $.70.

Grand total for all you see above, including two dozen roses, was $11.

Wait until you sink your choppers into the delicious red bell peppers for $.10 each. Linda loves to make ratatouille with them, and I like them on the organic avocado, fresh cheese, lettuce and tomato sandwiches made with fresh corn bread or pan de leche that we buy at the nearby bakery. The avocados are in season now, and cost $.20 each. Compare those prices with the red peppers or avocados in your local Florida supermarket!

So I hate to make this sound like a commercial, but why anyone would want to move to Montana when they could live here is beyond me. This is the view of volcano Cotacachi from our penthouse terrace. We paid $5 for the flowering hibiscus you see. It usually has about 6 - 5" gigantic blooms on it an any one time.

Below is Volcan Imbabura and the view from the other end of our terrace. I'm not even going to tell you what kind of rent we pay for our penthouse, because I don't want to start a stampede!

I will tell you, however, that we can help you get into a beautiful 1,200 sq.ft. condo with more than an acre of gardens for around $46,000 or a smaller condo for less than $42,000. We expect you can purchase seven or eight condos here for the price of one in Florida! Most of the condos have views of one or both of the volcanoes shown above.

Rumble in the Jungle--A Must Read from Greg Palast

2007-12-27T19:12:00.002-05:00

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There is a battle going on in the Amazon Rain Forest that could change the dynamic between indigenous peoples and big business everywhere. Greg Palast is recognized as one of the best, perhaps the last great investigative journalist in the United States. Unfortunately, his work is rarely recognized by the U.S. mainstream media, and is often published by the BBC.

“Doggedly independent, undaunted by power. His stories bite, they’re so relevant they threaten to alter history” -Chicago Tribune

In this story, "Rumble in the Jungle: A Quechua Christmas Carol" Palast goes deep into the Amazon Jungle to interview a nearly prehistoric tribe of Amazon Indians who have decided tackle Chevron-Texaco in a $12 billion law suit to clean up the toxic mess that is killing the tribe. Then Palast moves to the executive suites of the corporate lawyers who laugh at the possibility of the Indians proving that oil sludge causes cancer.

In a dramatic interview, he talks with Ecuador's President Raphel Correa, and uncovers Correa's determination that if the Ecuadorian courts find Chevron guilty, they will pay. This story, "A Quechua Christmas Carol" is a must read for anyone wanting to gain a deeper understanding of the epic battle unfolding in Latin America.

Don't miss this important article.

Gifts For a Wedding in Ecuador

2007-12-24T16:15:00.001-05:00

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Pro-Ecuador Reader Question:

Last year my son married a lovely Ecuadorian young lady whose family is from Ambato, now they live in New Jersey. Her parents were unable to travel north for the ceremony. This year they have scheduled a ceremony to repeat their vows there and we would love to go and meet them.

Are there any customs that we should be aware of in this situation? We would love to bring them a gift of some sort, but can think of nothing in particular which would suit the circumstances and worry that we may inadvertently commit a faux pas while visiting. We are not particularly wealthy (as far as I know neither are they, nor are we or they especially poor).

What advice do you have to help make this a comfortable, pleasing and respectful visit for all of us?

Jason´s Response:

The timing of your question is perfect as my wife and I just did the very same thing!

Your daughter-in-law’s family will not be expecting a gift. However, it’s a good idea to bring small gifts for her immediate family. Here are a few ideas:

• Souvenirs from the United States
• Framed photo of the bride and groom
• Leatherman Tool for father / brother
• Bottle of Whiskey (Johnnie Walker Black Label or Swing)

Whiskey is the drink of choice for celebration in Ecuador. Whiskey will most likely be part of the wedding reception and a good quality bottle from the airport duty-free store would be appreciated. Even non-drinkers like to have Whiskey on hand to share with friends.

Wedding attire is the same as in the United States. Remember that nights get quite cool in Ambato and that Ecuadorians dress more formally than we do in the United States.

Don’t be surprised if the wedding day lacks a detailed schedule. Ecuadorians are much less fussy about formalities and enjoy a much less stressful wedding day. Rather than plan everything, in Ecuador we work out problems as they arise.

Wear your dancing shoes because an Ecuadorian wedding is a real party. The Ecuadorians will dance all night…and will expect you to keep up.

Ecuadorian men greet each other with a medium firm handshake. Don’t use the U.S. style “squeeze of death” handshake while in Ecuador.

Don’t worry if you cannot speak a lot of Spanish. You can communicate with only a smile! Click here for Spanish phrases and words.

Don’t be afraid while in Ecuador but be aware of your surroundings. Try not to let valuables out of your sight.

Click here to review travel safety advice before your trip to Ecuador.

Lunch in Santo Domingo

2007-12-21T19:50:00.002-05:00

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Tania and I have been working hard lately so we decided to have lunch at the local mall. For $3.80 you can get a delicious chicken breast with fries (or yucca) and a salad. Excellent!

In just the past few years Santo Domingo, Ecuador, has received its first large grocery store, shopping mall, and a movie theater. I’ve been watching the roads transform from dirt paths to asphalt covered centers of commercial activity. This growing city is full of new housing developments built for Ecuador’s emerging middle class.

Santo Domingo had just 2,000 people in 1920 and now boasts a population of over 500,000. This year we became Ecuador’s 23rd province, Santo Domingo de los Tsachilas.

2007 was my first full year in Ecuador and I have witnessed much development. This picture shows a full parking lot at the mall in Santo Domingo.

With several projects in process for 2008, I will become part of the development in this boomtown, rather than a spectator.

Quito Named #15 top places to Visit by NY Times

2007-12-15T19:08:00.002-05:00

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I visited Quito yesterday to do some shopping. The town was abuzz with the latest boost from the NY Times Travel section listing Quito as number 15 in the top 53 places to go in 2008. I met some friends and I swear, they had a new twinkle in their eyes as they told me the exciting news.

Quito is an interesting and exciting city. Linda are I are going there for a couple days before Christmas to enjoy the sights, take in a movie or two, and eat out at one of the many exciting restaurants. We will probably drop in at the Qi Centro, the nicest mall in the city and do some shopping.

Here's what the Times had to say in their intro to the article. Check it out.

If you've been to Quito, Ecuador, there's a good chance you were heading to the Galápagos. But Quito, the colonial capital perched 9,200 feet up in the Andes, is no longer just a whistle stop. The city's crumbling historic center, one of Latin America's least altered, has been reborn after a seven-year, $200 million renovation. And a crop of upscale hotels has arrived, including a JW Marriott (www.marriott.com), making Quito a glorious new center in the so-called Middle of the World.

Read the Times article here.

Do you have a favorite restaurant or hotel you would like to share with our readers (and with us) Please share a post.

Gary

Ecuador Internet Connection Speeds Up!

2007-12-13T21:22:00.001-05:00

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I just received an unexpected call from Andinanet, my Internet service provider in Ecuador. Andinanet is having a promotion until the end of December whereby they will upgrade the speed of my current DSL connection from 256K/128K to 512K/128K at no additional charge.

I know, these speeds seem very slow compared to speeds in North America or Europe; however, Ecuador lacks sufficient telecommunications infrastructure and the news of a 512K download speed had me dancing around the office. I have been hearing rumors of a new fiber optic line in Ecuador, but now I think it might be true.

Internet is still relatively expensive in Ecuador. The new 512K/128K DSL connection costs $79/month. If $79/month is too expensive for your Ecuador budget, Andinanet offers a range of less expensive (and slower) alternatives.

I’m happy with my Internet connection because I successfully do business by email, phone (VOIP), and FAX; people only know that I am in Ecuador when I reveal my secret!

Ecuadorian balance of trade is positive or negative?

2007-12-12T16:48:00.002-05:00

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Pro-Ecuador reader comment:

Jason, here is a good article about inflation is the US. Do you know what the Ecuadorian balance of trade is? It is positive or a deficit? If it is positive, then it will not be hit as hard by inflation as if it is negative. Either way, Ecuadorian property is, as you say, a good hedge against inflation and the declining value of the dollar.

Jason's Reply:

It's positive. According to the Central Bank of Ecuador, the balance of trade for the first half of 2007 is about 6% of GDP. President Rafael Correa's decree forcing oil companies to share a higher percentage of their "windfall" profits with the Ecuadorian government has brought the current account balance back from negative territory.

Click here to read more about the Ecuador economy.

Can You Help Me Find a Hotel in the Galapagos?

2007-12-12T15:26:00.002-05:00

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Pro-Ecuador received the following question:

Hi Gary,

Do you know the best places to stay on the Galapagos islands without spending too much money? I really appreciate your help.

The Pro-Ecuador response:

Santiago Guamani, the owner of Ecuador Amazing Tours, was just visiting us today here in Cotacachi. Santiago has been in the business for nearly 15 years, and is well experienced running Ecuadorian tours for North Americans.

Eduardo Jaramillo, his director in the Galapagos, is bi-lingual and will be your best source to help you get exactly what you want. There are two types of tours in Galapagos, one is the combined tour, which offers a hotel stay and day cruises to the different islands. Hotels are in a variety of price ranges. The second is the boat tour where you have a room on a boat. The boat tours the different islands and anchors at a different island each night.

The boat tours are more expensive, unless you choose to stay at one of the very expensive hotels. If you want a do-it-yourself tour, you can book a hotel, then make your arrangements with any number of boats.

However, Santiago said you definitely need someone to help with your transfer to your hotel when you arrive at the airport. It is complex, and if you miss your boat connection to your hotel, you may find yourself out on the street for the night. I suggest that your best and easiest route would be to make some kind of arrangement for a tour before you get there, then you don't have to worry about handling the logistics when you don't know the area. You can simply enjoy your incredible Galapagos experience.

Give Eduardo a call and talk to him at the number below, or write an email to the email address. You can look at their website, www.galapagosamazing.com to see what they are all about.

Let me know if you need any more help? Also, stay tuned to our website, www-pro-ecuador.com

Happy touring,

Gary
Santiago Guamaní General Director, Ecuador Amazing
Eduardo Jaramillo - Director Galapagos
Puerto Ayora, Galapagos, Ecuador

Phone:	(593-5) 2 526 030
Mobile:	(593-9) 9 8485 85
Fax:	(593-5) 2 526 030
Email:	info@galapagosamazing.com

Air Conditioning Not Required

2007-12-12T13:26:00.001-05:00

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Pro-Ecuador received the following question:

I'm interested in the possibility of moving to Ecuador & would like to find an area/elevation which does not require air conditioning, yet is within a reasonable distance to the coast where there is some good surfing spots. We'd like to be able to raise tropical fruit trees & have a garden. Proximity to a decent sized town would also be a plus. Any input or suggestions would be greatly appreciated.

The Pro-Ecuador response:

My questions would be what you consider to be a reasonable distance to the coast. I live in Santo Domingo, which is about 80 miles from the coast and at 1,500 feet we neither need air conditioning nor heat. For me, this is the perfect climate. However, this city has grown from a population in of 2,000 in 1920 to over 500,000 today with very little urban planning. Honestly, I think I am the only “gringo” in town.

The really good locations to live are as follows:
-Ibarra (city): 8,000 ft and about 5 hours from the coast
-Cotacachi (small town) 9,000 ft and 5.5 hours from the coast
-Quito (Big city) 9,000 ft and 6 hours from the coast (30 min by plane)
-Cuenca (medium city) and 7 hours from the coast (30 min by plane)
-Vilcabamba (small town) and 5 hours from the coast

The most well know surfing beach in Ecuador is Montanita. If you like to explore beaches, you will love Ecuador. Most of the pacific coast is really under-developed and you can find lots of deserted beaches to explore.

Click here if you need a good map of Ecuador

Please stay tuned to our website, www.Pro-Ecuador.com because we are going to add a lot more information very soon. Also, please sign up for our newsletter to receive updates and new insider information. Click here to sign up

Regards,

Jason

How to Access Money for Real Estate Purchase in Ecuador

2007-12-12T13:11:00.001-05:00

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Pro-Ecuador received the following question:

I am moving to Ecuador in a few weeks. My question for now is...How do I set up my funds to have access to buy real estate in Ecuador. Everything I read is ATM's and TC's for tourists. Thanks for your prompt reply.

The Pro-Ecuador response:

The transfer of money is quite simply. When you find a property that you want to buy, and are ready to make a payment, you simply find out the seller's bank account information and have your bank wire the money to that account. You will need the name, address and phone number of the receiving bank, the SWIFT number of the bank, and the sellers account number.

If the seller happens to have a bank that has a branch in Miami, (several of them do--we use Pichincha Bank and they have a Miami Branch) you can have your bank wire the money directly to the Miami bank payable to the Account number of the seller. This way you avoid international wire fees, and the money usually arrives in the seller's account in a day or two.

Typical international transfers can take up to a week. If you do go
this route, it is best to call the Miami bank and ask them specifically what you need to do to effect the transfer. Different banks may have different regulations. You can find the bank number by Googling the name.

THIS IS VERY IMPORTANT--It is best if you first go to your own bank now. Hopefully, you can find someone there that knows you, or that you can develop a relationship with. Tell them your plans to purchase property in Ecuador and that you will be wiring money to an account in Ecuador. You would like to be able to arrange the transaction over the phone with that specific individual when the time comes. Get their contact information, including E-mail, and keep them closely informed about what you are doing so that they get familiar with your voice.

Best regards,

Gary