Why havent I heard about all of this?
By Charles Barrett
One of the problems facing US expats is the huge amount of misinformation about obtaining the Ecuadorian Residency visa. You may be asking, What is the best visa to have? or Why do I have this travel restriction stating that I cant be out of the Ecuador for more that 90 days in the first eighteen months? or What is the least expensive way of obtaining a visa? These are the questions expats, or soon to be expats, ask themselves, only to later find that they were not given the true facts and all the pertinent information.
In fact, accurate facts are a hard thing to come by in Ecuador. Getting the right facts can be compared to the challenge of getting the truth from a politician. It is very hard to get straight answers or the true facts from many of those in the political arena. And the facts in Ecuador depend on who is doing the asking, as well as who is doing the answering. It is a moving target and one that has left many US expats frustrated to say the least. In this discussion I am going to give you my best shot at what is fact and truthful, based on all the discrepancies I have encountered during my Ecuador experience.
Most US citizens who are moving to Ecuador to retire are obtaining the immigrant retirement visa. (There are 2 types of visa immigrant and non-immigrant). There can be issues concerning this visa. For example, you may have heard that you cannot be out of Ecuador for more than 90 days total in the first 18 months, from the time you initially entered the country. Lawyers usually take up to five months to obtain the visa for you when it should be done in 45 to 60 days, tops. It takes a lot of paper work and verification of birth certificate, marriage license and a guarantee of by the source of your retirement. I won´t go into the cost because it can vary from lawyer to lawyer. The lawyer´s fees can run from $2,300 to $2,800.
The Investment Visa looks easy. Just put $25,000 in the bank for the primary person and the $1,000 for each dependant. So you now have $26,000 or more tied up indefinitely. Lawyers can take up to five months to get the visa for you. It takes almost as much paper work as the retirement visa. Oh, you say, Ill just buy an apartment; the real estate agent and the builder tell you there´s no problem getting your deed, for without the deed you cant get an Investor visa. So, for up to two years after, you are still waiting for your deed. This is more common than most expats are told when they go this route. Or, maybe you bought a house or land only to find out there is a problem with the deed. So, once again your Investors visa is in jeopardy and you´re now running out of time for being in Ecuador legally.
Another potential problem: You are worried because the Ecuadorian customs tells you that you only have six months from the time you entered the country for your shipment of household goods to arrive, in order to be duty free. Its four and a half months now and your lawyer is telling you that you are almost finished. However, when you ask how long, you can´t get a straight answer. You are now looking for antacid pills and you dont know what you are going to do.
One of the best kept secrets is THE CORPORATION work visa. This visa is the easiest and fastest to get. It usually takes about 30 to 45 days. The cost is $1,400 for a visa for you and your spouse or significant other. There are no travel restrictions. (a non-immigrant visa) It doesnt require as much documentation. You form a corporation where you own 99% and an Ecuadorian owns 1 Your accountant or your Ecuadorian law firm files the required monthly reports, zeroed, tax form for around $30 per month. You pay minimum wage to your manager and your spouse and pay the $49 a month minimum Social Security fee, to the government. This fee entitles you to free dental, health care and medicine. This visa is renewable yearly for $200. .
You may be saying, Come on Charles it cant be that easy. Yes, it is, and foreign companies have been sending employees to Ecuador for over 50 years using this method, which also allows you to bring your used household goods and office equipment, duty free.
So now you have a visa. You can go back and pack your things, wait for your apartment to be finished and get your deed, without worries.
If need be, you can then wait for your retirement benefits to kick in, apply for your retirement visa and then sell your corporation to the next Expat that needs one, just as you did. By getting this visa, you will be able to get your Retirement visa with only a passport and apostilled proof of income (from EC consulate in the US).
So why havent you heard of this before now? Why didnt your lawyer tell you about it? Maybe because it is the easiest and cheapest way to get a residency visa and the best kept secret in Ecuadorian visas!
