How to Retire in the World's Top Retirement Haven

Saturday, January 09, 2010

Dear Reader,

Our Overseas Residency series, with the latest information on residency requirements in some of the countries we know are popular with many of you as second-home destinations, is back this week after the holiday break.

We've written about Belize, and the Qualified Retired Persons (QRP) program that offers a range of benefits, including exemption from capital gains tax and import taxes on household goods.

Then it was on to Costa Rica, where a new immigration law comes into effect on March 1st this year, and one main difference is the amount of income needed for residency (not surprisingly, the amount required will increase).

Brazil was next on our agenda. There are two main types of visa that are of interest in this country, the retiree visa and the business visa. The retiree visa is renewable every 5 years, and requires a minimum monthly income from an approved pension source of $2000 a month.

Today, we look at the World's Top Retirement Haven according to International Living. Ecuador is of increasing interest to many of you as a retirement or relocation destination. It's incredibly affordable, from the cost of living (a couple are living in Cotacachi for $600 a month), to real estate prices (you can buy a true beachfront condo on the sand from $50,000). That property can help you gain residency as well (see below).

So, just how easy is it to become a resident in Ecuador? Attorney Roberto Moreno shows us the main options, and gives us a good tip if you plan on bringing your pets with you.

Margaret Summerfield

Dear Reader,

The process of becoming an Ecuadorian resident is straightforward, but we recommend that you hire an Ecuadorian immigration attorney to help you. The most common residency visas are outlined below. Please note that fees and documentary requirements are subject to change.

Once you have obtained residency status, you can come and go from Ecuador as you wish. According to the law, you cannot be absent for more than 90 days per year, however, in the first two years of your residency (exceptions are sometimes made for medical treatment, etc). With an immigrant visa, you can apply for citizenship after you have lived in Ecuador for 3 years.

RETIREMENT VISA REQUIREMENTS
You must have income of at least US $800 a month for main applicant and $100 a month for each dependent. You must prove the source of your income--it should be from a recognized government or pension source. You'll also need the following documents:

Passport valid for at least six months.
Application for visa and form containing personal information.
Official document of support of the retirement pension or permanent income apostilled or legalized at an Ecuadorian Consulate
Certificate issued by the Ecuadorian Consul verifying the income

INVESTOR IN LAND/PROPERTY
You must have the final deed for the purchase of a property with a minimum value of US $25,000 and US $500 for each dependent, and the following:

application for visa and form containing Personal Information
deed of purchase registered before the Register of the Property
actualized encumbrance certificate from the Registry of Property

INVESTOR IN CERTIFICATES OF DEPOSIT
The certificates of deposit must be a minimum of US $25,000 for one year and $500 for each dependent. Again, you need the following documents:

visa application and personal information form
time deposit with a term of 365 days minimum
To get a Title, Policy or Certificate of Deposit:
- Your passport (original and copy)
- Bank account in Ecuador
- A letter from your lawyer certifying that it will be used to get the visa

It's important to note that all official documents coming from abroad should be legalized by Apostille.

One benefit of residency is the ability to import your household goods, and a vehicle, tax-free. You'll have to carry out the following steps:

Obtain a resident visa
Hire the services of a Custom Agent in Ecuador (we can help you)
Provide a list of household goods that includes information such as the name of the article, quantity, referential value, condition (new or used) for the Custom Agent
Legalize the list of household goods at an Ecuadorian Consulate (for some custom agents this is not necessary)
Hire the services of a freight company that will provide the Bill of Lading

The vehicle must comply with the following:

Value up to $20.000 / Cubic capacity up to 3.000 cubic centimeters
No older than 4 years since manufacture when you are importing your household goods
The vehicle can´t be sold in the next 5 years, counted since the arrival date
It has to be shipped in the same container as the household goods

Household goods can arrive in Ecuador up to 6 months after your own arrival date in the country.

If you plan on bringing your pet to Ecuador, bring them in as carry-on baggage if possible, to avoid paying custom taxes.

Roberto Moreno

For more information on residency in Ecuador, please feel free to contact Roberto, (JavaScript must be enabled to view this email address).

How to Retire in the World’s Top Retirement Haven