This information is derived from the State Department's Office of Investment Affairs, Investment Climate Statement. Any questions on the ICS can be directed to EB-ICS-DL@state.gov
Last Published: 7/13/2017

Investment Incentives

In December 2015, Ecuador’s National Assembly approved a Public-Private Partnership law intended to attract investment. The law offers incentives including the reduction of the income tax, value added tax, and capital exit tax, for investors in certain projects. It designates Latin American arbitration bodies as the dispute resolution mechanism. The law came into effect upon publication in the official registry on December 18, 2015.

The Organic Law of Production Incentives and Tax Fraud Prevention, which took effect on December 30, 2014, provides tax incentives related to depreciation calculations and income tax rates, which could benefit some foreign investors.
 

Foreign Trade Zones/Free Ports/Trade Facilitation

The 2010 Production Code authorized the creation of Special Economic Development Zones (ZEDEs) that are subject to reduced taxes and tariffs. The government considers the extent to which projects promote technology transfer, innovation, and industrial diversification when granting ZEDE status.
 

Performance and Data Localization Requirements

On October 11, 2016, Ecuador’s National Assembly passed the Code of the Social Economy of Knowledge, Creativity, and Innovation, covering a wide range of intellectual property matters. Article 148 of the Code establishes that agencies must give preference to open source software with content developed in Ecuador when procuring software for government use.
Visa and residency requirements are relatively relaxed and do not inhibit foreign investment.
COMEX Resolution 011-2015 placed tariff surcharges of five percent to 45 percent on about 3,000 tariff lines beginning in March 2015. Ecuador began easing the surcharges in January 2016. As of April 2017, surcharges are applied on about 2,200 products at either 23.3 percent or 10 percent. Ecuador committed to the WTO to eliminate the surcharges by June 2017.

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