Today’s Photo: Changing of the Guard, Presidential Palace in Quito
What Aren’t You Being Told About Moving to Ecuador? – Part II
By Dr. Lee Dubs
Continued from Part I
Is property really a good buy? That depends who you ask. Indeed, there are some excellent bargains available, but you have to be cautious. Some who bought real estate will say it was a good decision, while others will say it was not. If you find what you want at a good price (by Ecuadorian standards) and you plan to live there at least a few years, buying it may be right for you, but take your time. Some real estate agents and organizations will try to convince you that you are a fool not to buy quickly, that prices are surging, and that choices are limited. First ask yourself this question: Am I able to think objectively about real estate, or am I a slave to the North American cultural drive to “own?” Agents want you to compare prices here to those in your home country, not to normal prices in this location. Ignore the pressure and learn to think differently in another country. Dorothy is not in Kansas anymore.
There are currently two major groups moving into Ecuador from abroad: foreigners and Ecuadorians returning primarily from Spain and the U.S. As a consequence, there has been a construction glut of high rises in some areas, and more and more apartments (or “condos,” as North Americans prefer to call them) sit empty. Some have been purchased by soon-to-return Ecuadorians, but that does not account for so many that are unoccupied. There are indications that prices have peaked in Cuenca and may be dropping, but most property sellers trumpet the very subjective news that spaces are filling fast and that available apartments and houses are few and need to be grabbed quickly – at inflated prices, of course. Remember, just because it’s a lot cheaper than in the U.S. or Canada or Europe does not mean it’s a good buy.
Ecuadorians who are returning from abroad – not North Americans – currently make up the largest group of buyers, and they are savvier about the true value of real estate. They are not subject to the “gringo tax” that is often added when the buyer is a foreigner. Desperate sellers and landlords are usually willing to negotiate, as construction continues almost unabated and there are outstanding permits for buildings yet to be started. What was once the “charm” of some areas is now being swallowed up in a forest of multi-story buildings.
While the locals blame foreigners for the inflated real estate prices, some expats blame the Ecuadorian sellers themselves. You must keep in mind that it is a custom in almost all sales in Latin America – from the fruit and vegetable markets to real estate – to ask a higher price than the seller expects to get, and the negotiating begins. Paying the asking price reflects ignorance of customs; but paying it and then blaming the seller for asking too much is like blaming the knife for the cut you gave yourself.
The property owner may not always be the culprit for inflated real estate prices. There are unscrupulous realtors who add thousands of dollars to the seller’s asking price and then keep the difference. Comparison shopping is possible. A Canadian couple reported seeing a piece of property listed by one firm exactly $30,000 higher than through a smaller agency. How do they get away with it? Regulations are often vague and rarely enforced, but the biggest reason is the innocence and ignorance of foreigners who only compare prices to those in their home country, rather than take the time to learn more about true prices in the new country. Those who believe all the hype and hurry down to announce, “I have to buy property quickly,” are among those responsible for the inflation. They are the favorite clients of realtors.
The people who try to take advantage of your lack of knowledge are not always Ecuadorians. An expat recently heard an American in a restaurant boasting (loudly) into his cell phone that he expected to be a millionaire in no time by buying condos at X dollars per square foot and selling them to newcomers for more than double.
Is it okay to buy property online? If you are determined to buy real estate as soon as possible in spite of all the warnings, do not buy without first seeing it yourself. Need a good example of why? One North American woman bought a house online from a local realtor, based on the photos she saw and assurances that it was in a nice location. When she arrived in Cuenca in the early evening and showed the address to a taxi driver, he responded that taxis avoid that area after dark. The next day, when she saw her purchase, it only vaguely resembled the photos, and a neighbor told her that she could expect to be robbed when she wasn’t at home.
Is it better to buy or rent? Almost everyone agrees that renting is the smart move, and new arrivals who rent far outnumber buyers, as the warnings about rushing to buy are being heeded. In a recent article in U.S. News and World Report, Kathleen Peddicord, the founder of Live and Invest Overseas, bluntly states that buying property overseas is often a big mistake, and she urges people moving abroad to rent, not buy property, at least until they completely understand local laws and regulations, or possibly never at all. She lists several reasons for her very sound recommendation. Check out her excellent article on why renting abroad makes more sense.
In Ecuador, too, there are strong reasons not to hurry to buy. Renting gives new arrivals time to become familiar with the area and normal prices and to decide if this is the place for them. Some expats who rushed to buy their property at what sounded like a wonderful price, later decided to leave but could not sell what they had overpaid for. One couple finally took the best prices they could get and then held an auction for the rest before they left the country. Renting also avoids the pressure and hustle from sellers, who slow down when they hear, “I want to rent, not buy.” One aggressive realtor in Cuenca has been known to angrily turn and walk away when hearing those words. Ignore the stale pitch that “buying is a great investment” and that you are “throwing away your money” when you rent. Remember that you are in a different country where different rules apply.
Foreigners sometimes learn the hard way that title searches may not even take place. There have been reports of expats buying a home or apartment (condo), only to get a knock on the door from relatives of the seller, claiming partial ownership. A legal nightmare ensues.
Zoning laws and other restrictions do not always apply in some countries. The construction frenzy in Cuenca has sometimes resulted in expats who found their “perfect condo” also soon found an equally high building going up right next to them, sometimes only a few feet from their building. Their “beautiful view” of the mountains is now a view of someone else’s windows. Just because there are only houses next to your building does not mean you are safe, either. Developers throw enough money at the residents that they sell out, making room for yet another high rise. There are woeful tales of retirees who have seen a dream turn sour. As one couple also learned, building a house near your property line does not stop a large house or building from going up right next to you on the other guy’s property line. They went back to the U.S.
Rent or buy? The sage advice from seasoned expats is simple: Rent for at least the first year.
Are those pricey seminars worth the money? Reactions are mixed. People who have attended them have reported that while they do provide useful information, most are heavy on real estate and investment pitches. One couple stated that in a seminar they attended in their home country, the sponsors tried to first convince attendees that the economic sky will soon fall in the U.S. and Europe and that they needed to evacuate fast; and, by the way, the sponsors had some great real estate in South America to show everyone. Is the purpose of a seminar to help you? Why do some want to put you in one of the most expensive hotels in the city — when their stated goal is to help you save money — and there are far less expensive hotels right down the street? Is the purpose of a tour to show you the country or to shill real estate? If you do want to examine real estate “opportunities” mixed in with some useful information about living in Ecuador, attending one of the seminars or tours may be for you. If you want sound and objective information without paying for a high-priced gathering, simply come down for a few weeks and talk with expats who have lived in the country for at least a year and who have nothing to gain from your arrival.
Are Ecuadorians friendly? They are among the friendliest of people anywhere in the world. However, we are seeing some conflicts between locals and a growing number of arrogant, ignorant, and loud expats who do not approve of life in Ecuador. One long-time expat resident used a bit of hyperbole to describe the situation in a couple of Ecuadorian towns as “war zones.” That is exaggerated, of course, but Ecuadorians do have a limit to their tolerance. As increasing numbers of expats seek to isolate themselves in walled communities and high rises – whether for security or to stick with fellow expats — locals feel offended and even make fun of certain areas by referring to them as “Gringolandia,” a term that foreign residents often repeat without realizing it is local sarcasm. Foreigners who yell at government officials, bank tellers, and waiters because they are too slow or because they do not speak English are fomenting a gradual backlash that has been seen in some areas. We hope Ecuadorians will not paint us all with the same brush.
Who are the worst offenders? They are those who believed everything they read or heard from individuals and groups who hold the golden goose. They are those who came down here for one and only one reason: it’s cheaper. They did not expect things to be so different from “back home.” They do not see themselves as guests in someone else’s country. It isn’t what they expected or wanted, and they don’t like it here, even if it is cheaper. They take out their frustrations on the Ecuadorians instead of on those who misled them in the first place.
Is it safe to live in Ecuador? No country in the world is safe at all times. There is less violent crime in Ecuador than in many countries, but crime in Ecuador is increasing, and foreigners are frequent targets. Normal precautions are one’s best defense, but there have been some violent attacks. Most crime involves petty theft without violence, but guns, knives, and even screwdrivers have been used in holdups. Wearing flashy jewelry or getting into the wrong taxi often turns into a robbery. Read the U.S. warning to travelers for more information on crime in Ecuador.
Do I need to Know Spanish? It is not necessary to be fluent, but some basic communication skills are very helpful. Contrary to misleading articles, most Ecuadorians do not speak English. Why should they? But they are quick to warm up to the foreigner who at least tries to use their language, even if it is not good Spanish. There are capable language schools in most cities, and one can develop basic communication skills in a few weeks. Some independent English speakers may offer cheaper classes, but quality of instruction varies.
Can I make money in Ecuador? The initial waves of expat retirees in Ecuador were primarily people seeking little more than a quiet life. More and more of the latest arrivals, however, are looking for ways to increase their income. Businesses, investments, and real estate are the top choices. Be wary of any get-rich-quick schemes that you would have been suspicious of in your home country. Trust your instincts. There is a new breed of carpetbaggers from the north who, along with some locals, prey on the ignorance of newcomers, especially in real estate transactions and investment “opportunities.” There are profit seekers who move from one business venture to another, trying to attract gringo dollars. While there are legitimate opportunities out there, let the buyer (or investor) beware. That smiling, friendly fellow expat may not be your friend at all.
A recent trend is what can be called cottage industries, small businesses whereby expats sell fruits and vegetables that they grow, goods that they bake, or other products that they create. Such small businesses provide income, while the sellers are doing what they enjoy anyway.
Most businesses run by expats are new in Cuenca, while others have existed for years. If you want to start a business in Ecuador, first talk with the foreigners who have a business. They will help you with the do’s and do not’s, as well as the requirements and paperwork. Failure to do it right can shut you down. Get expert advice. Beginning in 2011, the national tax agency (SRI) began a crack-down on “business” and “professional” visas where there was no business – a gimmick some lawyers used to get money from newcomers with promises of an “easy visa.” One expat from the U.S. got such a visa and was told by her lawyer, “If anyone asks about your business, tell them you work with me.” It was reported that a number of gullible expats were deported for obtaining visas under false pretenses. Several lawyers are still being investigated and face loss of license.
Putting money into banks and cooperatives without doing your homework can be risky, as some are backed by insurance and some either are not or are under-protected. Simply going for the highest interest rate on savings or a CD can carry risks. Why do you think they offer the highest rates? In 2012 there was a temporary nation-wide run on one cooperative because of a false rumor that started in one city. Ecuadorians are familiar with their history of sudden closures, and they can cause one just by storming a financial institution and its cash machines. Choose your bank or co-op with care. How much of your money is guaranteed by insurance and how long would it take to recover it?
There are gringo residents who like to tell you which bank, co-op, lawyer, realtor, etc., to go to, but they sometimes ignore the bad experiences of others or they may even be getting commissions by steering you toward certain services. Free advice is often worth what you pay for it. Always check several sources of information and compare.
Some expats buy real estate and then rent it to newcomers. That is legal and is a source of income, too. It may be an opportunity for those who want to rent, but it is always wise to shop around and compare prices. You can find some bargains, but there is no need to overpay just because the owner is a fellow countryman.
What should I do? First, if you are considering moving to Ecuador, do not believe everything you are told by organizations and paid writers with a self-serving agenda – especially their understated costs of living and push to buy real estate. Proceed with caution. Anyone who urges you to come see him for all the answers probably has an angle and is unlikely to provide a balanced picture. Second, do your own research before you head south, learning all you can about the country from various objective sources. Third, make an exploratory trip on your own. If you cannot afford an exploratory trip, you probably cannot afford to live in Ecuador at all. Fourth, communicate with helpful expats who know the country well but have no hidden agenda. They can tell you which realtors, lawyers, relocation services, etc. to use and which to avoid. Finally, come without a chip on your shoulder. If you consider yourself a “political refugee” trying to get away from something, leave your anger and frustrations behind you. Don’t spend your time (and that of others) railing about how terrible your home country has become. Prepare to adjust to an exciting new life where you can be happy. And remember that Ecuador is not going to change for you, nor should it. It is a wonderful country full of delightful people. Most expats love it here.
Addendum. Several foreign residents who have written articles and offered other comments online in which they issued warnings about misinformation have been themselves routinely and swiftly attacked and accused of being liars. Consider the reasons for such reactions.
Lee Dubs first visited Cuenca in the early 1960s and has been a full-time resident for the past nine years. A retired language professor from North Carolina, he and his wife, Carol, are the owners of Carolina Bookstore on Calle Hermano Miguel at Calle Larga. Lee can be reached by email at cld941@yahoo.com.
Well stated! This information should be helpful to many people! Thanks for publishing this. Z
We were honored that Dr. Dubs gave us first crack. Mary
Those cracks will be well received! Thank you, Doc, and Thank you, Mary! Z
[…] To be continued… Part II […]
Thanks Mary and Steve for publishing this fine primer on relocating to this wonderful country. And, many thanks to Lee for having the passion to contribute his very accurate insights to this timely issue.
In our monthly Chamber of Commerce “Welcome to Newcomers” meetings, we try to communicate the same thoughts and ideas that Lee documents in his views. Most of it is common sense, but there are some very vital points of specific value in conducting business and expectations here in Ecuador.
Thanks, again, Lee for your caring and accurate comments.
Mike Grimm
Reblogged this on Living It Up in Ecuador.
Bravo, Dr. Dubbs ! And thank you 🙂
One criticism and one idea.
Criticism – there has been absolutely no crack down on professional visas., which are no more than a right to be employed by somebody or to work as an independent consultant, and which are much more difficult to obtain than other visas. This is so because professional visas are given only to foreign experts in certain fields, and because they require the certification of SENECYT (the Ecuadorian Ministry of High Education). This is the visa with which attorneys do not wish to deal. Those who agree, quote prices of $2500 – $6000.
There has been crackdown on “working” and “business owner’s ” visa, which often presented fake employment data, for obtaining visas. My first year here, I had such a visa. And, according to the documents prepared by my attorney, I was working for her. In fact, the agreement was that I would be doing some consulting work for her, and that my visa would be extended for up to 3 years. I was charged $500, plus the visa and associated fees of around $300. There were many complications with this visa, because, as it turned out, my attorney did not know what she was doing. Nor did she file for my 3 months visa extension. One day before my 90 days visa was to expire, the Immigration Office helped, on my request. As soon as I received my working visa, my attorney decided that she had the right to enslave me in her office, with no pay. Repeatedly, I offered to do what I had promised to do for her business, but she refused. She also refused to renew my working visa, but, by that time, the crack down on the fake business and working visas was about to begin. So, I chose to deal with my residency visa myself. On my count, at least $350 of my $500 were stolen by that attorney.
Idea: Lee, why not have your own blog? It would be so very educational.
Do not have to write every day. Just when you have something to say
on a subject
You can take Lee’s advice or not, but I agree with what he says. I spent the first 25 years in real estate/developing business, including both residential and commercial construction, so you can say I have some experience. The best question you can ask, Lee has said but worth repeating; if it is visa help, real estate, or any other service, ask yourself “who is making money out of this, and who is putting up the money”. That does not mean all real estate or any other persons offering a service is a scam but you can bet that person is anxious for you to sign a contract for which they get paid. Some of these people have themselves fallen pray and are trying to get back even but maybe at your expense. There are plenty of expats that will freely give of their time to help you for no reason except they are nice people. Most of us are retired and have time to do so, but don’t listen to 1 or 2 and do not be in a hurry. Go slow and first be sure this is the right spot for you. Most of all remember that “wherever you go you take yourself with you”, so if you have personal or financial problems “there” they could be a lot worse “here”. International Living is a profit driven business to promote at this time Ecuador, next month it may be Bolivia. Take with a grain of salt what they say, and anything you learn from reading their remarks that are helpful—–consider it a bonus.
I am adding a comment on one issue: do I rent versus buy. Do a calculation on the time value of money (what your cost to buy would return invested in the USA) versus the annual cost to rent. For example if your condo would cost $60,000 and the rent on similar condos cost $400 per month or $4800 to rent per year. If you invested the $60,000 in a utility stock in the USA, you would receive a 5% dividend from any number of companies, plus receive an capital appreciation of another 4% per year. Thus the return on your $60,000 investment would be $3000 in dividends plus $ 2400 in capital appreciation per year with dividends increasing 5-6% per year..This is a total return of $5400 per year while your rent is $4800 per year. meanwhile you have full control of your $60,000 outside from Ecuador. One more thing, more often than not, housing DEPRECIATES in Ecuador instead of appreciating. From one who has been here for 13 years,
An excellent and well-written article. For us – who are moving to Ecuador in May, 2013 – there was nothing “new” however. We have been lucky enough to be able to recognize those who are promoters to pad their pocketbooks and those experienced expats who generally want to help new expats by sharing their experiences and lessons learned.
It also helps to have lived in another South American or Caribbean country and learned if you bring your Type A personality with you, there will be a great frustration level for you and, as Dr. Dubs indicated, your actions will likely add to the distaste for gringos. But this is true in most countries.
We, like so many others, are moving to Ecuador because we love the country and especially the people, and are going there to serve, not to be served.
Thank you, Dr. Dubs, for reinforcing in such an insightful way that which we had already learned through the kindness of others.
Bienvenido a Ecuador Jan and I am sure you will love it, for you seem to “get it”. 🙂
Great advice as usual Lee. Thank you very much! Stefani and Bob Owen
I’ve enjoyed Lee and his remarks about life in Ecuador, (Hi Lee. Hi Carol.), but speaking more as a traveler-expat than an immigrant–though I am currently a resident–I believe there is the reality unaddressed where, as older expats, we will not have the adaptability that second or third generation immigrants will experience from their elders moving into the new country before them. This has been true throughout history. As one example, look at the Asian communities in the US. It is the younger generations that most adapts to the culture *while remaining participants in a tight-knit Asian community.* As older expats, we are not likely bringing our families to carry on–and can suffer greater isolation because of it. Most likely we will have major issues with learning the language, truly adapting to the country or integrating into the local communities. Most of us will remain “foreigners.” Most of us will hang out with other foreigners we share cultural roots with–just as locals will mostly hang out with their fellow countrymen. That’s just the way it is.
Regarding Lee’s reference to “Gringolandia,” again, this is no different than how immigrants behave most anywhere. Cuban’s settle in Florida’s Little Havana. There’ve been Little Italy’s around the US. Chinatowns. You name it. And as to living in walled communities and high-rises, sheesh, many Ecuadorians who can afford it do the same thing. If you’re Ecuadorian middle-class or above, it is very likely you are living in an apartment, or have a home with tall walls and perhaps an electric fence above that. Or, as I lived, live in a walled community–I was the only gringo–everyone else was Ecuadorian. You can also find these walled communities owned and shared by locals outside the cities. This housing style is simply a component of Ecuadorian life. Foreigners doing the same are acting just as Ecuadorians where they want to be with people of similar class and disposition.
As to Ecuadorians laughing at us or feeling offended–well, we’ve done our share of laughing at foreigners in the US and there’s no telling the ridicule we’ve put on new immigrants! These are simply facts of cross-cultural interaction.
The good news: these situations won’t last forever. Eventually, there won’t be the financial incentives to leave the States. The cost savings eventually won’t amount to a hill of beans and those wanting to leave, not for the adventures awaiting them in living in different cultures but because it’s cheaper to live elsewhere–those opportunities will shrink as the world becomes smaller and smaller.
The bad news: it’s probably gonna be another 15-20 years or more before this all balances out. The gnashing of teeth, the bashing of heads will be with us for at least that long. Strangers in a strange land, most likely we will remain. Accept that and you’ll be more than halfway home as an expat. For those who can’t handle it, maybe you can visit other cultures at Disneyland?
Graham, it is clear you have been around and know the realities of being a stranger in a strange land. It is way too easy to under estimate the difficulties involved. My own experience is with living in Chiang Mai Thailand. A wonderful place in so many ways but I had to leave because of, for me, the over whelming language barrier (Thai was next to impossible to learn. ) The best advise is still to make exploratory visits, rent first, and come with an open mind.
[…] but they tend to be Americans. Dr. Lee Dubbs, a longtime American resident of Cuenca, Ecuador, writes that when it comes to real estate and investment deals, “There is a new breed of carpetbaggers […]
Very well written article. My family and I have been here four years by choice as we travel around the world. Sadly I speak to new expats that move here and are barely able to live in Ecuador. Many seem to move, not for the adventure but as a economic neccessity and from blogs that they have read regarding how inexpensive life is in Ecuador.
I don’t think people understand that anything out of America isn’t America anymore. I’ll be there from Aug 1 ~ 11 on a fun / fact finding mission in GYE. I actually stay away from heavily expat places and retirement places. I can’t wait, I’ve already met a few women just online. Right now I’m trying to either start an export type business or since I’m a developer start writing mobile apps. I’m fortunate the only real material possessions I care for are my video games and my 10 Teeshirts I buy online, everything else I can find some equivalent in country
Hi,
I’m just wondering, what is the best all around place to move to in Ecuador. I like the sea and the mountains, fresh air and produce. Will I be able to work there as a professional translator? Do they have a good internet connection?
Thanks for your help, truth about anything is hard to find, always.
Charles
All those things are available in Ecuador, it’s up to you to figure out where to live. If you need a good internet connection I think that it would be best to stay in the large cities. I don’t think that it would be hard to find work as a translator. You might be interested in Nicolas Crowder’s latest ebook 100 Points to Consider Before Moving or Retiring in Ecuador. And check out the online forums if you have more questions. Mary
Excellent article Lee. I will see you again in about another year and a half. In the mean time, say hi to Pucho for me.
Scott
I am curious what your thoughts are on disease risk and prevention, being that Ecuador is malaria-endemic, along with dengue and yellow fever, etc. What would someone planning to move there need to expect or prepare for? Is it a common problem among expats?
Thank you! 🙂
Not really a problem up here at 8,300 feet. Some areas on the coast and in the Amazon jungle might have outbreaks…
your article was very enlightening. Thank you. I just retired as a nurse, am 64 yrs old and just want to retire and live at a slower pace. an old friend of mine moved to Ecuador for the same reason. Please tell me how to get started-my income is approx.$2000 per mo. I want to avoid as many pitfalls as possible. If you can direct me to some reliable people, I would be most appreciative.
Respectfully I Submit
M Prater
Contact Maite Duran of Gringo Visas. http://www.gringovisas.com/ She has helped many expats to get their residency visas while they are still in the States. We had a couple of issues that she resolved for us and we recommend her highly. Good luck. Mary
Hello, I am from Ecuador and as the article says you have to investigate a lot before coming here. Let me give you some tips about my country, some things I’m proud of and other thing I am really ashamed.
Weather: Is one of the positive things, for example Quito (capital city) and Cuenca are pretty much an eternal spring, it never snows, the mornings are warm and afternoons are a little bit cold but not as cold as it can get in the US o Canada. If you go to Guayaquil the weather is like Miami pretty much all year round.
Geography: Is so nice to drive 20 minutes up to 3 hours to go from the highlands to a beach, and change suddenly to the jungle, you have many places to visit with different climates and animals in such a small country.
Work and Salary. The starting salary is about $340 this means working as a cashier in a supermarket and event an entry level position in a company, a good salary is about $1000 monthly and a great salary is about $2000 monthly but for these good salaries the competition is really hard, 2 languages at least, graduate degrees and age, there are a lot of masters degree in Ecuador and even with experience, studies, languages and age around 30 years old the salary the people get offered is around $800 (not enough for living really good)
It is a lie that you can live in Ecuador with $600, well you could but you have to spend a little in renting an apartment or house and this means a dangerous zone.
Real State: It is cheaper than the US or Canada but you have to come and see it for yourself, DO NOT TRUST ONLINE PURCHASES online check neighborhoods or references but dont even think about buying online.
Language: Mostly 75% of the population do not speak English, they will try to understand you in touristic zones but not in the majority of places, for example I work in a telecom and I can say that even here in my company only 15% of us speak English fluently, the rest a couple words or no English at all.
Transportation: It is very cheap around 25 cents a ride in a bus or even $1 ride in a taxi however buses do not have established schedules, buses are crowded pretty much in every hour and it is not so safe, forget about taking an iPod or a cellphone out in the bus, you will have a high chance to get robbed, in fact if I take a bus I put my cellphone in silence and I wear no jewelry.
Kindness: People are nice however because of several security issues nowadays people do not trust anybody therefore they could seem a little bit rude, for example if somebody asks me in the street for an address i never answer and I walk away because i don´t trust I because I think I may get robbed. I never take fliers in the street no even at a mall.
Laws, law suits, visas: Try to find a good immigration lawyer for visas, there are a lot of paperwork to do, in Ecuador most of the applications to file and process for visas or any legal process cannot and are not handle online, there is a lot of paperwork involved. About lawsuits is not like in the USA that if something happens to you like an accident in an slippery floor in a hotel or restaurant you can file a lawsuit, well in Ecuador you may sue them but you have a chance f 0.1% of wining. Even in transit accidents lets say you hit a person with your car who did not crossed the bridge property and just jumped in front of you normally is that persons fault, well you will go to jail and pay all his or hers expenses and if that person dies pretty much you are screwed that is why a lot of people who even witness an accident never talk to the police in order to no get involved and in a lot of accidents even the drivers runaway and do not help anyone. Also there is a lot of corruption in Ecuador.
Prices: Food is not expensive however technology it is very expensive, for example 25 oranges costs $1 but the latest iPhone could cost double or triple the price in the US. Same is for cars, computers and clothing.
Health: Doctors and dentist are not as expensive like in the US, however avoid public health go to a private hospital. Public Health is a mess and even in the emergency room you have to wait a lot because of crowded hospitals. Health insurances are good options and even paying for an event for example a plastic surgery for breast implants and a liposuction with one of the top doctors can cost $7000 but in the us could be triple of even 4 times this cost.
Driving: If you thought driving in Chicago was hard you dont want to drive in Quito or Guayaquil, poor signals, a lot of traffic, and impatient and rude drivers.
Walking: You can walk in several zones in the city, but even in a nice neighborhood avoid taking your cell out to pick up a call.
Banking: you will need all your paperwork in order to have a savings account for checking account and credit cards it is pretty much impossible to get one for a foreigner without good proof of incomes.
Wow Dan! Thanks for the great write-up for what new expats can expect. Mary
Wonderful timely advice. We are coming to coming to check out Ecuador at Christmas and are looking to experience the season in your country. As we have no Spanish fluency would appreciate connecting with a travel agent or guide who can help us plan our itinerary (safely and affordably). Advice welcome. Thanks in advance.
Robert and Monika
Thanks for all the great information.
What are the taxes to live there and how much (%)? Sales tax, property tax, school tax, Income tax, state or province or municipality tax etc.. and which relate only to earned income and which relate only to property ownership? I assume your pension or social security from a foreign country is not taxed by the government or the banks when you deposit it.
Personal property: someone said you have a one time opportunity to bring into Ecuador, personal property from your home country. Is this limited to household goods or is a car, motorcycle also exempt from being taxed in this one time event? What visa/residency status does one need to qualify for this?
I’m not familiar with Ecuadorian tax laws, perhaps this would be a question to pose on one of the Facebook groups (most popular with over 10,000 members is the Ecuador Expats) or the User Forum on Gringo Post.
Once you receive permanent residency status you have a one time opportunity to bring in your household goods. There are restrictions (sorry no cars or motorcycles unless you are an returning Ecuadorian citizen), you can check the Aduana del Ecuador website for the regulations concerning Menaje de Casa.
Good luck, Mary
Was good information, I’m planning on retirement in Ecuador in the next 2 to 3 years.my retirement will be around 1400 a month. Many things you say are true, I have been there many times, my wife is from there. I have had my share of issues there with government officials,etc. Still love the people and country, the problem is generally not the people but government run places and the government itself.and yes, don’t be in a hurry for anything,including your waitress at a restaurant. Your right, I’m leaning more on renting than buying. Any and all advice is appreciated.