As if the earthquakes and floods of 2016 weren't 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
-- cccmedia
N.B. -- The full text and details of the law were not included in the e-letter.
Ecuador Passes 75 Percent Capital Gains Tax on Property Resales
cccmedia
04 January 2017 06:55:56
10197
Nards Barley
04 January 2017 15:34:42
1633
Does the 75% rate drop if you hold the property a certain period of time?
cccmedia
04 January 2017 22:13:43
10197
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. A new administration will take office in April.
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