Paying Taxes In Ecuador

I am under the impression, at least with the Retired Visa, that one does not pay any income tax on SS etc that comes from the States.  If the person opens a business, then taxes are paid on the income generated by the business.

It is true that SRI wants a list of income anywhere in the world if the person on assets    $200.000 and above ($400,000 if married).  I think that they want to know at what banks and bank account numbers.  Haven't heard much about it lately,

However, a US citizen must pay Uncle taxes on every cent earned anywhere in the world.  So if you are a US citizen your SS, pension etc is taxable in the YS even if you live in Ecuador.

If I'm wrong on the Visa de Pensionado I would like to know.

Thank you for your answers!

Who makes the decision as to where you pay taxes for a Canadian just moved to Ecuador after a resident's visa is obtained? And what are the income tax rates in Ecuador ?  Thanks for any input!

If you are moving to Ecuador permanently then you become a non-resident of Canada. You indicate on your tax form the date you left Canada. You pay Canadian taxes on all your world income (i.e. income made anywhere) up to the day you left Canada. After that date you only pay tax on your Canadian income (such as CPP and OAS). They will deduct 15% non-resident tax so make sure you file a Canadian tax return every year as you should get most of that back (depending on your Canadian income). Any income you make in Ecuador you pay Ecuadorian tax on.

I hope this helps...
Bruce

Thank you Bruce,
This has been a great help!

Hi BHoltby,

I am from Vanc. Island looking to retire in Ecuador. Thankyou for some background on non resident taxation.  In fact, today, I was on the line with CRA non resident department trying to get clarification.  If we are non residents of Canada due to our residency in Ecuador, do you know how Cdn investment income gets taxed.  Does it get taxed in Canada or Ecuador? I believe reading  somewhere on the CRA site that there is a 15% withholdling tax on Cdn paid dividends.  From what you wrote it sounded like Ecuador would not be taxing our Cdn pension income nor Cdn sourced investment income (interest income, dividend income and capital gains), they would tax us only on any income generated within the country. I don't plan on working there but I may have a small certificate of deposit that may earn some interest which I assume would be taxable.  Your further clarification in the event you are familiar with the answers would be greatly appreciated.

Hi Ukee,

Your understanding seems to be the same as mine. Any income you make in Canada (pension, investments, employment, etc.) would be taxed by the Canadian government. Any income made in Ecuador (interest, etc.) would be taxed by the Ecuadorian government. One clarification, the 15% witholding tax applies to everything and is taken at the time you receive the income. It is when you file your tax return that the true tax (on dividends, capital gains, etc.) will be applied and you will either owe tax or will get a refund as may be the case.

I hope this helps...

Bruce