$25000 investment question

Eddie, I am no expert but my impression is if you use the $25K option to secure your visa then the money must remain untouched. If, at 62 (I am guessing you will start receiving Social Security over the current $800 per month requirement) you can then get a new visa based on that and then you would have access to your $25K to do with as you wish.

I agree with Largisimo as to the funds. Again, my understanding is that the Investment monies must remain in place, and are not to be accessed by the Investor.  I also believe there is a 5 % penalty at withdrawal that you pay the govenment.That was why I went with the Retirement Visa, so as not to have my Visa tied to the property I bought, in the case I wanted to sell. I realize you're refering to just the bank deposit. Personally, I don't think that gives you much flexability, pretty much tying up that 25K.
Good Luck,
Neil

I think the 5% applies if you are taking the money back out of Ecuador and wouldn't apply if it stayed in country. I had a friend that used the $25K CD option and he had the interest deposited into his checking account giving him some access to the money. He was getting over 6% and appreciated the extra cash.

I agree with your understanding. Guess I didn't make my statement too clear. It woud only be taxed if taken OUT of Ecuador. But, I am surprized at the being able to use it in a checking account, thereby going below the 25K requirement? I have heard some of the Credit Unions pay as much as 10% on C.D's, which is a pretty healthy return. I will look into that as soon as I get there in June.
By the way.... nice BBQ. I think I will not be partaking of the Coy. Do you like it? I know.... tastes like chicken.
Stay Well,
Neil

I have heard they taste like chicken but I only pose with them not eat them so I can't tell you how they taste! My friend spent the interest on his $25K. The initial $25K stayed locked up and untouchable.

I have eating Cuy and I personally would not do it again.  It takes like eating a dirty boney baby pig.

As far as the $25K question, I believe also as long as the money stays in Ecuador you will not be penalized. 

Mike
themiddleoftheworld.com

Ahhhh, that makes sense. As long as you don't dip into the government requirement of 25 K,  you are cool. That was my thinking, you must maintain the 25K on deposit, if it exceeds that per intrest, you can with draw the excess.
As far as the coy... no intrest on this end, but, I also realize they are considered a delicacy to the locals.
Stay Well,
Neil

The Largisimo wrote:

I think the 5% applies if you are taking the money back out of Ecuador and wouldn't apply if it stayed in country. I had a friend that used the $25K CD option and he had the interest deposited into his checking account giving him some access to the money. He was getting over 6% and appreciated the extra cash.

Hi there,

Suppose if we took the money out of Bank? If we have some emergency or we made up our mind to take it out? we can take the money out which is fixed? or not? There must be some limits of years that uptill this time one has to keep and if he or she is unable to do so he or she has to pay a penalty? Because its disturbing if bank says not by any mean u can pull ur money out....

and in case supose we did not get any interest yet and we have to take money out even then bank will issue penalty?

What will be the penalty amount? I heard 5%.. but this is when u take your money out of Bank or out of Ecuador?

regards

lots of commentary on this $25k investment visa. Aside from the penalty questions in country vs out of country I know their are a number of other related issues that arises from the use of this investment tactic.
I would strongly recommend spending a couple of hundred dollars to discuss this with an investment/tax attorney in Ecuador. Their are several who I know are well versed in this visa method and they can explain the benefits and the pitfalls if you decide to use the $25k investment visa.

Odani agree with timo get the advice from a tax attorney from ecuador recommended in gringo tree which is a little newspaper in cuenca that every one reads to find out who they recommend and have used and in different fields...be careful who you take advise from espically here...  they are all angry for money......
Dont trust anyone...got it....

Largo i think you make the deal with the bank interest etc and ask the questions.
Matter fact write diwn two questions and have then answer your questions on the email so you have them in writing from the bank.  i would think the bank is going to give you a letter that you have a CD THE AMOUNT and your arrangement that you are getting the interest in a checking or you are not touching the interest.  some oeople put their interest in their checking account this depends on which bank they are with.  some banks most have gone bankrupt years ago so pick carefully.   your deal is with the bank then you take the cd  letter to the goverment visa roffice two seoarate things i think to get the visa....

smmr wrote:

Odani agree with timo get the advice from a tax attorney from ecuador recommended in gringo tree which is a little newspaper in cuenca that every one reads to find out who they recommend and have used and in different fields...be careful who you take advise from espically here...  they are all angry for money......
Dont trust anyone...got it....

Hi Smmrr thanks for your reply....

Keeping Money in Bank is safe or no? Because at this point when i have no idea about property i do not want to buy it may be later i will transfer my investment to real estate.....

But Is there any Tax from Govt keeping money in Bank?? I am not keeping money to get Interest... I am keeping it for investor visa.. Even if i don't get interest i give it Dam.. but what penalty bank put if u pull out your money??? There must be minimum time period from Bank too that you have to keep the amount for atleast 2 years or 3 years and after even if u take money out there is no penealty.. but don;t tell me even if u are dieing with hunger u can not take the money out before the fixed time period from bank......

and is there any Tax from govt to keep money in Bank? for property i know must be some.. But for Keeping money in Bank I have no Idea!!!!

My husband thinks each bank here makes their own deal.  it is like no respect...at least you are insured for that amount....whatever it is....you have 90 days to get land or visa or twenty five thousand dollars down with a letter.
Neg.
I would hire Maria Pia Martin
Why her she speaks english and spanish she is ecuatorianiania she sells real estate she knows the laws here a little she has transportation for you...and she will not take their price if you buy any thing.,,,her husband is a gringo so she knows their are different prices for different colors.  [email protected] she is in facebook under maria pia martin  tell her mom2 sent you we are very close...not blood but close..  as i have toldyou she has a good soul and here it is hard to fine you must hunt.  she is building on the coast but living near me cuenca she is every where.  learned english in two mo wow.

smmr wrote:

My husband thinks each bank here makes their own deal.  it is like no respect...at least you are insured for that amount....whatever it is....you have 90 days to get land or visa or twenty five thousand dollars down with a letter.
Neg.
I would hire Maria Pia Martin
Why her she speaks english and spanish she is ecuatorianiania she sells real estate she knows the laws here a little she has transportation for you...and she will not take their price if you buy any thing.,,,her husband is a gringo so she knows their are different prices for different colors.  [email protected] she is in facebook under maria pia martin  tell her mom2 sent you we are very close...not blood but close..  as i have toldyou she has a good soul and here it is hard to fine you must hunt.  she is building on the coast but living near me cuenca she is every where.  learned english in two mo wow.

Is she dealing in Bank Cd's also?

Odan
Zen said credit union you can get 10 % but that was coopera and they were caught laundrying money...so they are in jail...got back up to $30,000.00..
Jet gives 8 or 9% Not positive.....but if they go down you would get back 25,000
But  you have to come keep your money there and wire it to you after you see and talk and visit but you really need some looking around.  everyone here needs a cedula card and that takes time and a lot of paper work.  pia will have to tell you what you need to get one it is like a social security card number.  if you want to put down 25,000 you must not be over sixty five but you still need a cedula card...which means you need paper work
Birth certiificate with seal not copy apostled and it must have your mother and fathers name
They want it changed into spanish and you are better having it done here they think their spanish is better cute.  other docutementes also...so you have a lot to do...

smmr wrote:

Odan
Zen said credit union you can get 10 % but that was coopera and they were caught laundrying money...so they are in jail...got back up to $30,000.00..
Jet gives 8 or 9% Not positive.....but if they go down you would get back 25,000
But  you have to come keep your money there and wire it to you after you see and talk and visit but you really need some looking around.  everyone here needs a cedula card and that takes time and a lot of paper work.  pia will have to tell you what you need to get one it is like a social security card number.  if you want to put down 25,000 you must not be over sixty five but you still need a cedula card...which means you need paper work
Birth certiificate with seal not copy apostled and it must have your mother and fathers name
They want it changed into spanish and you are better having it done here they think their spanish is better cute.  other docutementes also...so you have a lot to do...

They ask for orignal birth certificate to keep with them? what do u mean by birth certificate with seal? and what is copy apostled?

I am in my late 30's.......!!!

They no longer require the birth certificate for the cedula.

amyf wrote:

They no longer require the birth certificate for the cedula.

great.. so they need ur identity and birth from passport?

regards

The money has to be invested in a long term investment account.  This means you can only have access to it once a year during a window of time where you decide to either leave it alone or withdraw the funds.  Not sure how big of a window they give you, but no, you can't just waltz in and withdraw from a cd whenever you want.  Its like that in the states as well.

you can also invest at other things....