What's the best way to transfer money to Ecuador to buy a condo there.

[MICHAEL R.]

Hello All Expats

I plan on selling my home in 4 to 8 months and retiring to Ecuador.
1. What’s the best way to transfer all the funds from the sell to Ecuador?
2. Also does anyone know about the HSBC Expat Banking Program?
3. Do they have offices in Ecuador and where are they located?
4. What’s the safest and largest bank in Ecuador?

If anyone can help me with the questions above, I would greatly appreciate your help.

Thanks,
Mike Ryan
biz.expert@live.com
San Diego, California

[SUZAN HASKINS]

Hi Michael, if it were me, I would not transfer all my money to Ecuador. I don’t even have a bank account here. Why? Three reasons: 1) FATCA; 2) because of the silly bureaucracies of all Latin American banks; and 3) because I don’t need one. I keep my money in the States where there are FDIC insurance and some (said somewhat tongue in cheek) accountability regulations. I use Capital One that doesn’t charge any foreign ATM fees and when I need money I go withdraw $300. That small amount goes a long, long way here in Ecuador.

Note that Ecuador banks typically can only insure deposits up to $30,000. And historically, there have been more than a few bank and, especially, savings and loan failures in Ecuador. Be very, very careful about choosing a bank to do business with.

Of course, many expats have local bank accounts and they see value in that. Depending on what kind of visa you opt for, you may need a bank account for proof of income. The best way to transfer money is by wire from one bank to another. But again, I’d caution you not to transfer every cent you have. It’s just not prudent.

I’m sorry but I do not know anything about the HSBC Expat Banking Program and I don’t believe there is an HSBC bank in Ecuador. Your best bet is Panama for that.

The best-known banks in Ecuador are probably Banco Pinchincha, Produbanco, and Banco Guayaquil. You’ll need to research them to see if you feel comfortable with them. You’ll most likely find that they all report to the IRS. Here’s where you can find out: http://apps.irs.gov/app/fatcaFfiList/flu.jsf

[ROBERT CRENSHAW]

Don’t know if it’s still enforce or not but there is or was a 5% tax on money leaving Ecuador.

[COUNTRY EXPERT – WENDY DECHAMBEAU]

Hi Michael,

Suzan covered this subject fairly thoroughly but your title suggests you’d like to buy a condo here in which case you’ll need funds within Ecuador. I don’t know if this is the “best” way, but wiring money has been simple and worked well for me. You might want to shop around with banks within the U.S. to find what they charge for international wire fees and to see if they can initiate a wire without you being physically present at the bank. Luckily with Ecuador using the U.S. dollar there is no conversion fee.

I have a bank account at Banco Pichincha which is one of the country’s largest and more reliable banks. I know many other expats and Ecuadoreans use Banco de Guayaquil and are happy there. Just keep in mind that no bank (in any country) is failproof.

[Kristin O’driscoll]

Hi, Suzan,

My husband and I will be making an exploratory trip to EC next March, but I have been researching things down to the smallest detail (I’ve already moved, in my head!).

Re banking and funds, we would establish an account in an EC bank (Pensioner Visa) for the required monthly input. We’re assuming that we would be able to avoid onerous FATCA paperwork by using our US checking account for large purchases (write a check to purchase property, for instance). It would take awhile to clear, but that’s OK. Is that a feasible plan? It would certainly be simple enough.

Thanks,
Kris O.

[COUNTRY EXPERT – WENDY DECHAMBEAU]

Kristin,

You don’t actually need to establish an account here in Ecuador to gain your pensioner’s visa. You simply need to prove that you have a certain amount of money coming to you every month – they don’t care if it is deposited in the U.S., Ecuador, or anywhere else.

As for FATCA paperwork, it’s really not very difficult. We simply have to fill out an online form every year letting the gov’t know that we have out-of-country bank accounts. Pretty easy.

Writing a check from your U.S. bank account to someone here is not going to work. You’ll need an international check if you’re writing it to someone in another country and you’ll need to check with your U.S. bank to see if they can issue those without you being there in person. Honestly, I find wire transfers to be not much more expensive and quick and easy.

[Kristin O’driscoll]

Thanks, Wendy, for that clarification. That was helpful, and has shifted my thoughts about where the money would actually BE.

For reasons I’m not clear about, the airfares were significantly higher for time periods that included March 17th. That was the clear date “break point” for a higher fare schedule. Consequently, we will be in Ecuador in February! We’ll be in Cuenca for a month, and hopefully will be able to meet some of the folks writing on this forum. We’re both excited and looking forward to this trip.

Kris

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