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Withholding tax in Ecuador 2026
The default for non-residents is 25% of the gross payment, final — salaries, fees, royalties, interest and gains alike — rising to 37% for recipients in tax havens and falling to 10-14% for dividends.
The clean escape: occasional services under 6 months paid from abroad by a foreign company are not Ecuadorian-source at all.
At a glance
- top rate
- 37% (tax-haven recipients)
- entry band
- 10% on dividends
- tax year basis
- Withheld per payment
- filing deadline
- None where withholding is final
- residency basis
- Ecuadorian-source payments to non-residents
- regime flag
- Treaty benefits automatic only with a valid residence certificate and qualifying conditions
Rates
Withholding on non-residents (2026)
| Rate | Base | Applies to |
|---|---|---|
| 25% | Gross | Salaries for work in Ecuador, professional fees, directors' fees, interest, royalties and capital gains |
| 37% | Gross | The same income paid to residents of tax havens and low-tax jurisdictions |
| 10% / 14% | Gross dividend | Dividends — 14% for undisclosed chains or Ecuador-resident-owned haven links |
| 0% | — | Occasional services under 6 months paid from abroad by non-resident companies and not deducted locally |
Advance withholding residents meet (2026, selected)
| Rate | Base | Applies to |
|---|---|---|
| Progressive | Monthly salary | Employment income — final for salary-only earners |
| 2% | Gross | Labour services by individuals; interest from local credits and instruments |
| 10% | Gross | Professional fees, teachers, notaries, online influencers, real-estate leases and franchise royalties |
| 8% | Gross | Athletes, trainers, referees and artists |
| 1% | Sale value | Unlisted share sales — advance on the gains tax |
Thresholds & allowances
- Treaty reliefAutomatic within conditions
Requires the payee's valid tax-residence certificate; otherwise withhold and reclaim
Residency
Residency trigger
Resident-side withholdings are advances credited in the annual return; large corporate taxpayers self-withhold monthly at 1.25-10% instead of suffering agent withholding.
Non-resident treatment
Non-residents with fully withheld income file nothing; refunds of excess withholding run through documented requests, and permanent establishments file like companies.
Notes
- Withholding agents must verify the payee's foreign residence certificate before applying any treaty rate — and keep the evidence for audits.
- Interest paid to financial institutions is withholding-free; savings interest is exempt outright.
- Rulings from the tax administration bind it for the requesting taxpayer.
- A 15% rate hits lottery and gambling winnings and payments to registered tourism providers for foreign artistic shows.
FAQ
What withholding applies to non-residents in Ecuador?
A final 25% on gross Ecuadorian income — 35% for tax-haven residents — with dividends at 10% (14% for undisclosed chains).
Are short foreign assignments in Ecuador taxed?
Not if the stay is occasional and under 6 months with pay from a foreign company that no Ecuadorian entity deducts — that income is not Ecuadorian-source.
Figures: tax year 2026, compiled from public sources. Not tax advice.