Welcoming Ecuador?

[Ray Lenahan]

Well, we did make our trip to Ecuador back in September and loved it. Visited both Salinas and Cuenca and liked Cuenca a bunch.

We’re still contemplating a possible move but it’s probably a couple of years down the road and one more extended trip away. I’ve heard recently of the government of Ecuador passing or planning to pass a law requiring expats to disclose their assets outside of Ecuador for the purpose apparently of taxing those assets. Any truth to that? Also, is there any update on the health insurance issue that you can share? Finally, from different websites related to expat living in Ecuador, I am getting the impression that the government there is beginning to implement policies that are not so expat friendly. Y’all’s input would be appreciated.

Thanks,
Ray Lenahan

[Country Expert Jim Santos]

Hi Ray,

As someone who has lived in Ecuador for over 4 years now, I’m also keeping a close eye on the items you mentioned. A good rule of thumb is to ignore 80% of what you hear from expat chatter on social media – much of it is pure speculation, rumors, or inferences made from garbled translations. Your best sources of information remain the attorneys listed in our Rolodex ( https://members.internationalliving.com/country_clubs/ecuador/rolodex/ ) or the websites and office of the Ecuadorian Consulate in your area.

I maintain contact with an Ecuadorian attorney who operates in Quito and in in the related Ministerios almost daily, as he deals mostly with immigration and real estate closings for expats. I spoke to him about many of these issues just yesterday. For the first point, he is aware of no laws being discussed that would require expats to disclose their assets outside of Ecuador, and certainly no plans to try and tax them. His best guess on where that rumor may have originated, is that if you sign up for IESS (state health insurance), you are required to show proof of your income, including foreign income. Your IESS payment is then a percentage of that amount. Some may have construed that as a “tax on your assets”.

Speaking of health insurance, that still remains unsettled. A law was passed in February of 2017 mandating health insurance for all residents and tourists.However, according to the Ecuadorian Constitution, all residents 65 and over (including expats) are entitled to free health care at government facilities. So several local civic groups have filed a suit saying the law is unconstitutional. Likewise, although the current plan is that as of May 4 all tourist entering must have insurance, there is no agreement on how that will be verified or enforced. This is the third “deadline” declared, it keeps getting moved back. Lastly, there is still disagreement over whether all current residents are excluded from the requirement. For now, they are just requiring that new applications for residency include documents on how you will be insured.

So the health care remains in flux, which is why I have not written anything definitive yet for the magazine or web sites. Like I said, I am monitoring this, but rather than report every rumor, I’m waiting for official word from the Ministerios.

As for the last point, other than confusion over the immigration and health care issue, neither I nor my attorney are aware of any pending policies that target expats. Quite the contrary, the Moreno government seems to be aware of the value of the expat and tourist commerce, and seems to be making moves to make it more attractive rather than less – which is why some of us feel the insurance deadline keeps getting delayed. But again, let me stress nothing is official yet.

Please let us know if you have any other questions, and I will report any news as it develops online and in IL publications.

-jim

[Ray Lenahan]

Thanks, Jim. Much appreciated. Sorry we missed you when we were in Salinas.

Ray

[Author]

Posts