Living in Ecuador: 183-day tax residency, 2026 tax brackets from 0 to 37 %, five-year temporary tax residency

This page reports information published by the Servicio de Rentas Internas (SRI), the Ecuadorian tax administration, its Ley de Régimen Tributario Interno (LRTI), impots.gouv.fr, and diplomatie.gouv.fr. Article 4.1 of the LRTI defines tax residents as individuals present in Ecuador for 183 calendar days or more during the same tax period, whether consecutive or not. For 2026, the income tax brackets range from 0 to 37, with the first bracket at 0 to USD 12,208.

The law also provides for a five-year temporary tax residency, reserved for those who have never been Ecuadorian tax residents. The tax rate on dividends received by an individual is not detailed here.

Tax residence: Article 4.1 of the LRTI

The text of the LRTI published by the SRI (header: "last reform: 2026-04-01") defines the residence of natural persons in Article 4.1. A person is considered a resident for a given fiscal year if they meet one of the following conditions:

• presence of 183 calendar days or more in the same tax period, consecutive or not, including sporadic absences;
• 183 days or more over twelve months spanning two tax periods: Ecuadorian residence is presumed, unless proof of tax residence elsewhere and a core of activities or economic interests in that jurisdiction is provided;
• main core of economic activities or interests in Ecuador, directly or indirectly;
• absence of a stay of more than 183 days in any other country or jurisdiction during the financial year.

The core of business activities is in Ecuador if the income earned there in the last twelve months exceeds the income earned in any other country; the core of interests is in Ecuador if the largest share of assets is located there. It is presumed, unless proven otherwise, to exceed one million dollars in assets in Ecuador for anyone who has been a tax resident, Ecuadorian citizen, permanent resident, or representative of a resident company.

Anyone establishing residency in a tax haven must prove 183 days of presence there for the duration and location of their economic activity; otherwise, a former Ecuadorian resident retains Ecuadorian residency for four tax periods. A resident of another country pays Ecuadorian tax on their Ecuadorian-source income.

Between France and Ecuador, Article 4 § 2 of the convention distinguishes between dual residences as follows, according to impots.gouv.fr: permanent home, center of vital interests, habitual residence, nationality, agreement of the authorities.

Income tax: 2026 tax brackets for individuals

SRI Resolution NAC-DGERCGC25-00000043, signed on December 29, 2025, updates the tables in Article 36 of the LRTI and has been in effect since January 1, 2026. 2026 Table of Individuals and Undivided Estates, in US dollars:

Article 2 of the LRTI includes among income that which natural persons domiciled in Ecuador obtain abroad; the SRI refers, for double taxation, to the ordinary imputation method (resolution NAC-DGERCGC22-00000026), not detailed here.

Dividends, interest and capital gains: what the LRTI provides

Dividends distributed by a company incorporated or established in Ecuador are considered Ecuadorian-source income (Article 8, No. 5). The exemption in Article 9, No. 1 applies to dividends distributed to other national companies after corporate income tax; it does not apply to individuals. The tax rate on dividends received by an individual is not detailed here.

According to the 2026 tax schedule, fifty fractions represent USD 610,400 (50 × 12,208). Capital gains from the sale of shares in companies domiciled in Ecuador are considered Ecuadorian in origin (Article 8, No. 3.1). The off-exchange regime is not detailed here.

Real estate: what official sources say

Article 9 of the Constitution stipulates that foreigners residing in Ecuador have the same rights and obligations as Ecuadorians (text published on the website of a decentralized autonomous government). The LRTI (Law on the Regulation of Real Estate Transactions) classifies profits from the sale of property located in Ecuador as income from Ecuadorian sources (Article 8, No. 3) and exempts the occasional sale of real estate, up to a limit of two per year (Article 9, No. 14, text replaced in December 2024). Article 13, § 1 of the convention makes capital gains on real estate taxable in the country where the property is located.

The conditions for acquisition by a foreigner and municipal taxes are not detailed here.

Inheritances and donations: 2026 tables

Inheritances, bequests, donations, and other gratuitous acts are subject to income tax: Article 3 of the resolution updates the table in paragraph (d) of Article 36 of the LRTI for 2026. Those relating to assets located in Ecuador are of Ecuadorian origin (Article 8, No. 9).

The Franco-Ecuadorian convention only covers income taxes (article 2), neither wealth nor inheritances.

Temporary five-year tax residence

Between Articles 4.1 and 4.2, the LRTI contains an unnumbered article, "Temporary Tax Residence," for individuals who are not Ecuadorian tax residents and have never been so before the law came into effect. The regime lasts five years and is subject to one of the following conditions:

• an investment of at least USD 150,000 in real estate or productive activities in Ecuador, to be held for five years;
• or proof of a monthly foreign-source income of at least USD 2,500, with social security affiliation.

These conditions must be met within 120 days of entering the country. Only income from Ecuadorian sources is taxed under this scheme.

For entry, diplomatie.gouv.fr (page updated on September 15, 2026) indicates that a visa is not required for a tourist stay of 90 days or less over a rolling twelve-month period; the page does not deal with residence visas.

Coordination with the France-Ecuador Convention

The convention, signed in Quito on March 16, 1989, entered into force on March 25, 1992, according to the BOFiP (Official Bulletin of Public Finances); the SRI (French Tax Administration) lists it, along with France, among the conventions in force. According to the text published by impots.gouv.fr:

• withholding tax capped at 15 % on dividends (article 10) and royalties (article 12);
• interest: 10 % if they finance equipment sales, a bank loan or public works, 15 % otherwise (article 11);
• salaries: taxable in the State of residence if the stay in the other State does not exceed 183 days in the tax year, under two other conditions (Article 15 § 2);
• pensions taxable in the State of residence (article 18); tax credit on both sides (article 23).

Other gains are taxable in the transferor's state of residence (Article 13 § 5), except for shares of 25% or more in a French company (protocol, point 6). Details are available on our page dedicated to the France-Ecuador convention. The departure from France is also the responsibility of...’exit tax and tax residence.

What this page does not cover

It does not detail the dividend rate for an individual, off-market securities sales, VAT, social security, real estate acquisition by a foreigner, municipal taxes, or residency visas. These matters fall under Ecuadorian law and should be verified with the SRI (Regional Tax Service). Balmont Conseil is neither a law firm nor a local tax advisor: local tax matters should be verified with a professional based in Ecuador. French matters, particularly the departure declaration and the accounts to be declared, are addressed in our pages on tax residency and exit tax.

What changes depending on your situation

• The number of days spent in Ecuador and elsewhere, per fiscal year, and the location of the core economic interests.
• A history of Ecuadorian tax residency, which excludes temporary tax residency.
• The nature of the income: salaries, dividends, interest, sales of securities or real estate.
• Your tax residence in France and Ecuador, year by year.

The rule depends on your situation. No results are guaranteed.