Ecuador Passes 75 Percent Capital Gains Tax on Property Resales

cccmedia Ecuador/Colombia Expert

Member since 13 March 2014

cccmediaEcuador/Colombia Expert04 January 2017 04:55:56

10281

As if the earthquakes and floods of 2016 weren鈥檛 enough to depress property prices in Ecuador, the government has now passed a heavy tax on resales.

The law taxes capital gains on real estate resales at 75 percent.

The first $8,000 in profit is excluded from the tax as a normal gain.

Data source: an e-letter from EC entrepreneur/blogger/hotel owner Dom Buonamici to readers of his website, ecuadorrealestate.org

聽 -- cccmedia

N.B. -- The full text and details of the law were not included in the e-letter.

Nards Barley ViP

Member since 25 May 2012

Nards BarleyViP04 January 2017 13:34:42

1633

Does the 75% rate drop if you hold the property a certain period of time?

cccmedia Ecuador/Colombia Expert

Member since 13 March 2014

cccmediaEcuador/Colombia Expert04 January 2017 20:13:43

10281

No threshold was indicated in the e-letter, although Dom said there were a dozen revisions to the law before passage.

He says various presidential candidates want to abolish the law already, so the punitive 75 percent tax may be short-lived.聽 A new administration will take office in April.

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