Here's something I wrote on the subject:
The Three Best Ways to Get Your Residency in Ecuador
YouÂ’ve made the big decision to live in Ecuador. Congratulations! It is now time to apply for your residency visa so you can legally remain in the country. And to qualify for all the benefits that come with residency.
Within 90 days of obtaining your visa you can ship your household goods (but no vehicle) duty-free. If you’re 65 or older you are entitled to all sorts of special treatment—half-price bus transportation anywhere in the country, half-price tickets to movies plus sporting and cultural events, discounted airfare, a free land line telephone, and refund of your 12% IVA tax.
You even get to cut into the front of the line at the bank!
Although there are 19 different immigrant visa categories youÂ’ll most likely choose from one of the following three: with retirement income, with a Certificate of Deposit, or by buying real estate.
First things first
All foreigners entering Ecuador with a passport (valid for at least six months) and a return ticket are automatically issued a T-3 tourist visa that allows you a cumulative stay of up to 90 days. If you have not completed your residency requirements within that period you can apply up to the 89th day for a 12-IX Immigrant visa that extends your residency privilege for an additional 180 days.
It is best to be organized and prepared before your arrival by obtaining in advance the proper documentation. Trying to secure your paperwork remotely is a nightmare and may require an expensive and unplanned trip back to your home country.
Which visa category is right for you?
±Ê±ð²Ô²õ¾±´Ç²Ô±ð°ùÂ’²õ. For expats with retirement income this is usually the preferred option since it requires no major capital investment. ItÂ’s the route I personally chose. You are required to demonstrate permanent income of at least $800/month to qualify. An additional $100/month income is needed for each dependent. Typically this comes from the applicantÂ’s pension, Social Security, or fixed income annuity (since funds cannot be withdrawn once the distribution phase begins). Unstable income from sources like rental properties or stocks are not acceptable. Your documentation must be notarized and apostilled as well.
Investment in a Certificate of Deposit. You can obtain a CD from any financial institution recognized by the Central Bank of Ecuador. These include Banco de Pichincha, Produbanco, and Banco de Guayaquil. The minimum investment is $25,000 plus an additional $500 for each dependent. This money must stay in your account as long as you remain in this visa category, although you are entitled to withdraw the accrued interest. If after three years of residency you successfully apply for citizenship all money will be returned to you.
Investment in real estate. This might be a good choice if you’re planning to own your residence in Ecuador. Your property must be valued at least $25,000 plus $500 for each dependent. Be very aware that this value is established by the tax office and may be wildly different from the purchase price. Often in the US the “assessed value” of your home (especially in a robust real estate market) is much lower than its potential sales price. This is good news because your property tax is tied to the lower figure.
In Ecuador the tax value of the home you wish to purchase may not have been updated since it last changed hands years ago. So, as an example, even though you pay $70,000 cash for your condo, if the current tax value is only $20,000 your investment does not satisfy the requirements for a visa (ouch!). Be sure to check on this before agreeing to purchase any property.
Also note that you must provide a deed for your property; the purchase process itself is not sufficient proof of ownership. I know friends who bought a condo to get their visa, only to learn the developer had violated the terms of his permit by adding two additional floors to the original plan after approval. To legally stay in the country they had to fork over an additional $25,000 for a CD until the matter was resolved and they finally got their deed over a year later.
So how much will your visa cost? And how long will it take? IÂ’ve saved the best news for last. Your visa application costs $30 and the visa itself only $320 for each family member. Assuming you provide correct documentation your visa should be completed in only two months.
Until recently the visa application process was often complicated and confusing, and long delays were the norm. Now major improvements have been made to streamline and simplify the requirements.
In addition to offices in Quito and Guayaquil, a new office opened in Cuenca in June 2012. All locations are staffed with bilingual employees to provide needed assistance. Your application should be made in the office closest to your Ecuador residence.
Have the proper paperwork ready and initiate the process as soon as possible when you arrive in Ecuador. Requirements can and do change. More importantly, excessive delay in getting started can cause your documentation to expire and necessitate starting all over again.
