Income tax on rent, worked example, in Ecuador

July 25, 2018

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:

1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 USD = 1.00 USD

4 Rental income earned by nonresident individuals is taxed at a flat rate of 25%.


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