Rental income taxes

[BARRY KELLY]

I am a U.S. resident and have newly purchased a property in Ecuador that I am renting out on a monthly lease.  The Ecuadorian tenant is saying that there is a non-resident rental income tax that must be withheld from the rental payment.  Upon researching I find that the rate for 2013 is a flat 22%, and is withheld by the tenant.  Does anyone have a similar situation?  I need to understand the tenant withholding and tax payment process.

[COUNTRY EXPERT- SUZAN HASKINS]

Hi Barry, I’d recommend you contact a local attorney and ask about that. You don’t say where your property is, so you may want to contact someone in the municipality where the property is located. Two attorneys who may be able to quickly answer your question, though, are Roberto Moreno (Quito/Manta):  roberto@morenodidonato.com and Santiago Andrade (Otavalo/Cotacachi): santiago1397@gmail.com.

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