There are some great reports being sent to Ecuador Living subscribers after our trip last week to Cotacachi.
For example one report tells of this organic tomato farm for sale that is producing $25,000 a year income.
Another looks at 15 new condos like this being built on a small river in Cotacachi.
Yet another reviews our trek on this fantastic lake.
One report I already sent to Ecuador Living subscribers last week provides a warning (and solution) about a new Ecuador financial reporting regulation and a Social Security wrinkle for any American who plans to live abroad. An excerpt from that report explains why this is important information to know.
I am working with tax attorneys in Ecuador and the US because there is a new Ecuador wealth reporting law that requires residents or those staying in Ecuador over 183 days a year to report all wealth and assets (everywhere in the world) once a year.
This new financial reporting law requires all Ecuadorian residents with assets above $200,000, ($400,000 as a couple) to report their wealth.
This report requires an itemized list and valuation of financial accounts and personal property owned anywhere in the world every year six months after the end of the year.
Even those who do not have this wealth can be asked to submit a report showing what wealth they do have and they can be fined if this report not presented.
Here is what our Ecuador tax attorney, Floridalva Zambrano, has replied:
The whole issue about “Declaración Patrimonial” has been very confusing as the rules have been changed several times in a short period of time. The government has mentioned several times that this “Declaración Patrimonial” does not have any tax purposes, that it is only a way of checking the increase in the value of your patrimony from year to year and that it was legally obtained.
Right now this information is available through the municipalities, registries, SRI itself, bank system, etc, but it is not as useful as it would be if they have it concentrated. Kind regards, Flori”
For many US residents who plan to move to Ecuador avoiding this report will just add a bit more work to existing tax and asset protection planning.
First of all, one should keep their wealth as confidential as they legally can.
Our US tax attorney Joe Cox wrote:
I am not at all comfortable with reporting to the government of Ecuador or anyone ALL of one’s worldwide holdings. Even if it is a generic reporting or an overview. Anyone could then find out what you have and what you are worth. We have no assurance that there are security walls in the tax departments.
There are ways to avoid this report but for Americans planning to live anywhere abroad there is another concern beyond this Ecuador reporting. This concern is a US Social Security regulation.
If you are collecting Social Security and live abroad you must report overseas income correctly to Social Security or you can be penalized by a fine or imprisonment.
Plus Social Security recipients can lose Social Security benefits if they work or even own a business (even if they do not work in the business).
The same steps one would take to legally to reduce one’s financial profile (for Ecuador reporting purposes) are also likely to resolve the Social Security concerns at the same time.
If you are living in the US and planning to live in Ecuador prepare in advance.
You can read this entire report as an Ecuador Living subscriber.
Or you can contact our tax attorney Joe Cox.
We expect a lot of inquiries on this and I have asked Joe if he would give our readers a no charge consultation. Joe has set up a system so his personal assistant can take calls calls and e-mails and schedule a first time no obligation, no fee conference call on the questions about this.
See Joe’s Bio here.
Joe Cox’s email is email@example.com
Please copy his personal assistant firstname.lastname@example.org
Until next message, good living in Ecuador or wherever!
Join me and Thomas Fischer from Jyske Global Asset Management in North Carolina to learn more about economic trends and new tax and bamnking regulations.
David Cross our webmaster will also speak to help delegates learn how to have a global internet business.
We’ll have lunch at the farm and enjoy the cool summer mountains. Here’s a shot of our front yard.
Thomas Fisher speaking to our delegates at the farm.
Delegates enjoying a private conversation with Thomas Fischer during a coffee break at the farm.