Ecuador: Worked Example of Tax on Rent
Country Rating » 
In Depth
- Overview
- Price History
- Rental Yields
- Taxes and Costs
- Tax on Rent (Example)
- Buying Guide
- Landlord and Tenant
- Inheritance
- Living There
- Country Statistics
Directory
Global Statistics
Regional Statistics
- Sq. M. Prices
- Rental Yields
- Rents
- Price/Rent Ratio
- Buy/Sell Costs
- Rental Income Tax
- Capital Gains Tax
- Landlord & Tenant Law
- GDP Per Capita
- GDP/Cap Growth 1 yr
- GDP/Cap Growth 5 yrs
- Economic Freedom
- Ec. Freedom 5 yrs
- Competitiveness
- Property Rights Index
- Currency +/- Value
Tax Example: Rent
| Non-resident couple's joint monthly rental income1 | US$1,500 | US$6,000 | US$12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| = Taxable Income | 18,000 | 72,000 | 144,000 | |
| Income Tax Rates2 | ||||
| Flat Rate | 25% | 4,500 | 18,000 | 36,000 |
| Annual Income Tax Due | US$4,500 | US$18,000 | US$36,000 | |
| Tax Due as % of Gross Income | 25% | 25% | 25% | |
Thanks to: |
||||
DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on July 17, 2007.
Notes
1 The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner).
2 Non-residents are taxed at a flat rate of 25%.
NON-RESIDENT COUPLE (THROUGH A LOCAL CORPORATION) |
||||
| Non-resident couple's joint monthly rental income1 | US$1,500 | US$6,000 | US$12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Costs2 | (3,000) | (4,500) | (6,200) | |
| Less Depreciation Expense3 | (6,000) | (20,000) | (48,000) | |
| = Taxable Income | US$9,000 | US$47,500 | US$89,800 | |
| Corporate Tax Rates4 | ||||
| Flat Rate | 25% | 2,250 | 11,875 | 22,450 |
| Annual Income Tax Due | US$2,250 | US$11,875 | US$22,450 | |
| Tax Due as % of Gross Income | 12.50% | 16.49% | 15.59% | |
| Thanks to: |
||||
DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on July 17, 2007.
Notes
1 The property is jointly owned by husband and wife, through a local corporation.
2 Estimated values. Income-generating costs are all deductible.
3 Estimated values.
4 Corporations are taxed at a flat rate of 25%. Gross income from lease transactions is subject to 8% withholding tax. This tax is deductible against income tax liability.
Post a comment
Subscribe to our Newsletter!
Enter your email address to sign up.
Your Comments
Be the first to comment!