South America
Ecuador: tax at a glance
This is a dollarized economy, and residents are taxed on worldwide income. Foreign income already taxed abroad is exempt. There is also a 5% currency-outflow tax on transfers abroad.
The taxes
- Personal income (top)
- 37%
- Corporate income
- 25%
- Capital gains
- 10% on real-estate gains. Other gains are taxed as income.
- VAT / IVA
- 15%
- Dividends (WHT)
- Up to 25% for residents (roughly 10% to 25%). Non-residents pay 0% unless the recipient is in a tax haven.
- Interest (WHT)
- 25%, though registered qualifying foreign loans are taxed at 0%.
- Royalties (WHT)
- 25%
- Social security (employee)
- 9.45% (IESS).
- Social security (employer)
- ~11.15%–12.15% (IESS).
- Wealth tax
- None
- Inheritance / estate
- Progressive up to 37%.
- Property tax
- Municipal property tax (predial).
- Other
- ISD currency-outflow tax 5%.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- Yes
- CRS
- Participating
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Sources (1)
Frequently asked
What is the income tax rate in Ecuador?
The top marginal personal income tax rate in Ecuador is 37%. Progressive to 37%, with the top rate starting from ~USD 110k. Residents are taxed on worldwide income, though foreign income already taxed abroad is exempt.
What is the corporate tax rate in Ecuador?
The headline corporate income tax rate is 25%.
Does Ecuador tax capital gains?
Capital gains for individuals: 10% on real-estate gains. Other gains are taxed as income..