South America
Ecuador tax rates 2026
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.
Worldwide (residence-based)
Last verified
The taxes
| Personal income (top) | 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. |
|---|---|
| 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
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.