EC income tax for a non resident supporting a resident

Just wondering what my EC income tax liability would be as a non resident with a resident spouse. Although we would be living in EC full time I would be there less than 183 days/year and my income would be from outside EC. My spouse would have no income and would be supported by me. She would live there year round. Would she even be eligible for residency without an income so to speak? Would I just get a visitor visa every time I come and go. My rotation would be 28/28. with travel time I would only be in country 26 days at a time or less.

jlbenitz wrote:

Although we would be living in EC full time I would be there less than 183 days/year.... My spouse would have no income and would be supported by me. She would live there year round. Would she even be eligible for residency without an income so to speak?


Your wife's desired status as an immigrant with residency rights is problematic.

As your dependent in any immigrant-visa scenario, she would be subject to losing any visa-based residency rights along with you if you obtain an immigrant visa (known to Gringos as a residency visa) and then you are outside Ecuador for 91 or more days of the 365 days following visa acquisition.

If you try to do serial non-immigrant tourist-stamp visits, you are also limited to a total of 90 days outside the country in the 365 days beginning with the day you first obtained the tourist stamp.  The extra-territorial chunks of time can be taken 28 days at a time, but that would only get you through five or six months with visa rights.

A 180-day non-immigrant extension visa is possible for you as a couple, but figuring out the coming-and-going scenario in a way that preserves your residency status is real "inside baseball" that goes beyond what the non-attorneys on this forum can reliably advise.

Along the way you'd run into some advanced-math problems since you and your wife will be on different schedules.

Anyway, after 270 days -- 90 days on the tourist stamp and up to 180 days on the extension visa -- you would run out of time early for the 365-day period.

You might also look into a student or volunteer-based visa for your wife, good for one year.

To sort this out with a professional, contact Quito immigration attorney Sebastian Cordero -- scordero(at)gcabogados.com

cccmedia in Quito

jlbenitz wrote:

Just wondering what my EC income tax liability would be as a non resident with a resident spouse... I would be there less than 183 days/year and my income would be from outside EC.


Based on what you told us, you will have no income tax obligation in Ecuador.
Consult an appropriate accountant on how to structure your family's return(s).

cccmedia in Quito

In your realm of knowledge, would I be able to get a resident visa even though I would be in and out of the country on a rotational basis?

jlbenitz wrote:

In your realm of knowledge, would I be able to get a resident visa even though I would be in and out of the country on a rotational basis?


As I partially indicated above, the requirements in each of years 1 and 2 after obtaining the immigrant visa require you to be in Ecuador all but 90 days out of 12 months.  Year 1 is not a calendar year but rather the 12-month period that starts on the date you obtain the visa.

So you could possibly get such a visa, but your residency rights could be stripped at the airport about five months in when the authorities review your passport and see that you exceeded the 90-day aggregate limit of non-Ecuador travel.

Absent a pension income, an Ecuador-based job or real estate here, your best bet might be an investor visa, requiring a $25,000 investment in an EC certificate of deposit.  The 90-day rule for outside travel would still apply, however.

cccmedia in Quito

I know I seem a little dense about all of this and I do appreciate you taking time to answer. So if I were to buy some property that would qualify me as a resident. Would I still be bound by the number of days in country to maintain residency? Is there a value amount on the property to be considered a resident?

Ok, I did a little more research. It would seem that what I want to do may be a little difficult indeed. Looks like a professional would definitely be in order.

jlbenitz wrote:

Just wondering what my EC income tax liability would be as a non resident with a resident spouse. Although we would be living in EC full time I would be there less than 183 days/year and my income would be from outside EC. My spouse would have no income and would be supported by me. She would live there year round. Would she even be eligible for residency without an income so to speak? Would I just get a visitor visa every time I come and go. My rotation would be 28/28. with travel time I would only be in country 26 days at a time or less.


Are you both USA citizens?  If so you must pay taxes on your worldwide income.  Since you will not be in Ecuador long enough to qualify for foreign income exemption, all your income will be USA taxable, and if self employed subject to self employment  (SS & MC) on all net income no matter where it is earned.  If you would wind up paying income tax in Ecuador you could take it as a credit against your USA taxes.  Good luck.

jlbenitz wrote:

I did a little more research. It would seem that what I want to do may be a little difficult indeed. Looks like a professional would definitely be in order.


All immigrant visas, including the professional visa, are subject to the 90-day rule during Years 1 and 2.

Once satisfying the in-country requirement for Years 1 and 2, a visa holder may be outside Ecuador for up to a total of 18 months during any five-year period without losing visa rights.

cccmedia in Quito

jlbenitz wrote:

if I were to buy some property that would qualify me as a resident.... Is there a value amount on the property to be considered a resident?


It's the same minimum as for the CD-investor visa -- $25,000, as certified by the municipality where the property is located.

Based on what you have told us, I consider it likely that the CD would be a better route for you than buying property...

1. Real estate purchases can take a long time in Ecuador.  Buying a CD is simpler, fast-tracking you for obtaining an investor visa.

2.  Owning property in Ecuador puts you in a hole if you decide that Ecuador is not for you long-term.  It could take many months or even years to unload the property, and meanwhile, you may have to deal with property-management issues as an absentee landlord.

3. If you're in and out of Ecuador every 28 days during the property-purchase process, you may be at a disadvantage as issues and opportunities come up.  There can be delays and complications here in real estate scenarios beyond what you've experienced before, especially if the buyer is out of the country.

cccmedia in Quito