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Ecuador is a dollarized South American nation with digital nomad visa options, tax treaty network, and opportunities in agriculture, petroleum, and growing tech sectors.
Region
SOUTH AMERICA
Corporate Tax
25%
Setup Time
3 weeks
Currency
USD
Straddling the equator where the Andes meet the Pacific and the Amazon, Ecuador offers something unusual for South America: a dollarized economy that eliminates currency risk for USD-based operations. Combined with competitive costs and lifestyle options from Pacific beaches to colonial highlands, Ecuador attracts entrepreneurs and residents seeking Latin American opportunity with reduced financial complexity.
Life in Ecuador varies dramatically across its compact geography. Quito, the capital, sits at 2,850 meters in the Andes, offering spring-like weather year-round. Guayaquil provides Pacific coast access, while Cuenca attracts retirees and remote workers with its culture and affordability.
The population of approximately 18 million is predominantly Spanish-speaking. Healthcare offers genuine value, with quality private facilities providing care at costs far below US equivalents.
Safety varies by area but has improved in recent years. The cost of living is remarkably affordable, enabling comfortable retirement or entrepreneurial runway on modest budgets.
Ecuador's business environment has evolved with current orientation generally favorable to private enterprise. The corporate tax rate of 25% is standard for the region, with incentives available for priority sectors including technology, agriculture, and renewable energy.
The dollarized economy—adopted in 2000—provides unusual stability for Latin America. The digital nomad visa program provides clear pathways for remote workers.
Company formation is accessible, with minimum capital of only USD 800 for a standard limited liability company. Formation typically takes three to four weeks.
Foreign ownership is permitted at 100% in most sectors. Banking functions adequately for domestic operations.
Political and regulatory stability in Ecuador has improved but requires ongoing attention. Infrastructure varies significantly across the country.
Crime and security have been concerns in certain areas. For entrepreneurs seeking dollarized stability and affordable living, Ecuador offers genuine opportunity.
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Local: Sucursal
| Corporate Tax Rate | 25% |
| Personal Income Tax Rate | 37% |
| VAT / Sales Tax | 15% |
| Capital Gains Tax | 25% |
| Withholding Tax | 25% |
| Reduced Corporate Tax Available | No |
| Non-Resident Withholding Exempt | Yes |
| Tax Treaty Network | Yes |
| Banking Access | MEDIUM |
| Financial Privacy | LOW |
| Currency Controls | NONE |
| Local Bank Account Required | No |
| Non-Resident Bank Account Allowed | Yes |
| Physical Presence for Banking | No |
| Banks Restrictive (High Risk) | No |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Local Bookkeeping Required | No |
| Mandatory Audit | No |
No dedicated crypto licensing framework in Ecuador. Cryptocurrency activities are permitted but unregulated.
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A |
| Business Plan Required | Business plan required |
| Personnel Required | Management team |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 2 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Gaming Commission or equivalent |
| Licensing Fee Details | Standard gambling licensing |
| Permitted Business Models | Casino, Sports Betting |
| Permitted Activities | Land-based and online gambling |
| Restricted Activities | Varies by jurisdiction |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | No |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF guidelines |
| Business Plan Required | Comprehensive business plan |
| Personnel Required | Qualified management, compliance officer |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity required |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 2 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Central Bank registry |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Central Bank |
| Licensing Fee Details | Varies by license type |
| Permitted Business Models | Banking, EMI, Payment Services |
| Permitted Activities | Banking, payment services, lending |
| Restricted Activities | Deposit taking requires full banking license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |