US Residency address and US Banking

[RAYMOND SCHWARTEN]

Getting closer to relocation time. Trying to get my ducks in a row. Have a couple of questions.
1) Do you need to maintain a US address once you have a retirement Visa in Ecuador?
2) Are there any issues with US banks if you only have an Ecuador address?
3) Is it best to keep a US bank for direct deposit (Social Security Checks) or is it better to have them direct deposited to and Ecuadorian bank.

I know I will have a ton of other questions as the time approaches and this is by far the best resource I have found for getting good in country information.

Thanks in Advance

[SUZAN HASKINS]

Raymond, the reason to maintain at least some kind of US mailing address is because you’ll need one attached to your US bank account and credit cards. (You won’t be able to get a credit card in a foreign country without some kind of credit history.) You’ll want to keep a US bank account to pay those credit cards. And I can’t say for sure, but I don’t think US banks like it if you don’t have a local US address.

As for #3, that’s totally up to you. There are only a couple of banks in Ecuador qualified to accept direct deposits of US social security payments. Those are Produbanco and Banco de Guayaquil. I always recommend that you wait to open bank accounts until you know where you will be living. You want a relationship with a bank branch conveniently close to your home.

[EI EXPERT – EDD STATON]

I maintain a US address and have my Social Security check direct deposited into an account there. But I also have an Ecuadorian account with Banco Bolivariano as well as a credit card secured with a CD. With timely payments the card will be unsecured when the CD matures after a year.

[RAYMOND SCHWARTEN]

Thanks for the reply. Looking forward to meeting you guys when we move to Cuenca in October.
FYI I did not receive an email letting me know that a reply had been posted. I think I have seen other posts where they made the same comment.

[GRETCHEN SOLDAT]

So how do you expats maintain a U.S. address when you no longer live there? Children, friends, those independent post office boxes? Do you continue to get mail there and someone inspects it for you?

[COUNTRY EXPERT – WENDY DECHAMBEAU]

Gretchen, we expats use all of the things you mentioned. Currently my husband and I use my sister-in-law’s address as our own and the tiny bit of mail we get goes to her. If it’s something important like a new debit card or tax statements she’ll send them on down to our P.O. Box here in Ecuador otherwise she has our permission to throw all junk mail away.

[GRETCHEN SOLDAT]

Thanks Wendy! Of course, this creates another question for me. I was reading yesterday about state tax liabilities once you’ve moved overseas. Does the fact that you maintain a U.S. address create a tax liability in that state, as if you are still a resident? From what I’ve read, it appears that the Feds don’t tax Social Security if your gross income is under a certain amount, but some states won’t “let you go” and come after you for tax.

Did any of you move to a non-state-income-tax state before the final move to Ecuador? That is a strategy some have suggested. I guess we could move to FL before if its that big of a deal. Its close to Ecuador, lol.

[SUZAN HASKINS]

Gretchen, I think if you can prove you live full-time out of the US you’ve nothing to worry about. For a definitive answer, email tax advisor Nick Hodges at nick@nchwealth.com.

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