Showing posts with label Living in Ecuador. Show all posts
Showing posts with label Living in Ecuador. Show all posts

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?"
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.

Wednesday, February 20, 2008

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

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.

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.

Saturday, February 9, 2008

Use Your Credit Card For Purchases 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.

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.

Monday, February 4, 2008

A Cell Phone in Ecuador and the U.S.

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.

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.

Monday, January 28, 2008

Permiso de Salida No Longer Required

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.

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

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.


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!

Sunday, January 20, 2008

Mechanic in Quito

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 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.

Wednesday, January 16, 2008

Map of 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.

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

Friday, January 11, 2008

Kichwa Christmas : 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.

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.

Monday, December 31, 2007

Florida, Montana, or Ecuador???

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.

Thursday, December 13, 2007

Ecuador Internet Connection Speeds Up!

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 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!

Wednesday, December 12, 2007

Air Conditioning Not Required

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'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