Ecuador Real Estate,Tax & Privacy

by | Feb 18, 2010 | Archives

Ecuador real estate tax & privacy concerns are important subjects. This subject is vital because owning assets outside one’s country of citizenship can provide some benefit, but can also complicate tax reporting and estate planning.  Professionals are required!

Delegates at our seminars always enjoy each other and the 70 delegates who joined us last week for our Quantum Wealth seminar in Mt. Dora at the Lakeside Inn were no exception.


This is the…


Lakeside Inn in Mt. Dora on Lake Dora

After the seminar we all came to our home and took a walk down to our lake.


Here are comments from one of the delegates who was with us last week.

Dear Gary, Wanted you to know how much I enjoyed the seminar this weekend. True to promise, the presenters were great, and there was a lot of really helpful information on many topics.  I especially enjoyed your delightful son-in-law, David. My business partner and I had been particularly interested in the web site content, and we got a lot from him and his humorous approach.

I also enjoyed the mix of delegates (participants in our world — we give programs and workshops also, and I have been doing them since 1974). I never expected to find so many from the Energy Underground in one place, and the convergence was great.

Thank you also for inviting all of us to your beautiful home on Sunday. It fits you and Merri well, and your gracious hospitality after having moved in so recently meant a lot in getting to know more about both of you.

I’m looking forward to Super Thinking and Spanish in March with my husband and also to our joining you in Ecuador following the seminar.  Again, thanks for a great weekend.

The first part of the Quantum Wealth seminar was about matching intuition with logic.  Then the seminar looked at international investing and business and our attorney, Joe Cox, was one of numerous speakers.

One of the questions Joe was asked… was about Ecuador real estate and tax.

As far as Ecuador is concerned, the occasional buyer and seller of real estate pays no capital gains tax.

As far as the IRS is concerned, if you own real estate in Ecuador (or anywhere abroad) US tax rules are almost the same as if the property were located in the US. On your U.S. tax return you would use the same depreciation rates, and the same rules with respect to income and expenses.

Owning the property personally does not require you to file any special forms.  This however can create some estate problems when it comes to wills.

There may be forms you have to submit depending on the use of the real estate  and if foreign companies or foreign trusts entities are used to hold title to the property.

If the property is your primary residence, and you live in it full time 2 out of the past five years you may be able to claim the sale of personal residence gain exclusion on the property ($250,000 if single or $500,000) if married and pay no taxes so long as your gain is less than that amount.

This exemption cannot be used if your overseas property is a second home or rental property.  You cannot use foreign property in a tax free 1031 exchange with a US property.

US citizens who own Mexican property in a”fideicomiso” should file Form 3520 and 3520A for each year thereafter.

I highly recommend that if you are US person living abroad you review your estate planning and asset ownership with an attorney experienced in this field.

The attorney I use is Joe Cox at

You can learn more about Joe at

This site has advised many times to be sure to keep your accounts in order and do not rely on privacy to avoid reporting assets correctly.

Now privacy has been eroded further by the robbery of bank data for resale by employees.

A recent BBC article entitled entitled “Germany will buy ‘tax evaders’ list if real” shows this new reason why privacy is not safe!

Here is an excerpt from the article:   Germany’s Angela Merkel: will buy the names if they are genuine

The German Chancellor, Angela Merkel, says she will buy a list of alleged tax avoiders said to be hiding money in Switzerland – if it is a genuine one.
Up to 1,500 Germans are alleged to have stashed millions of dollars in secret bank accounts across the border.

The Financial Times Deutschland reported that the data was being offered by an IT specialist who once worked at HSBC in Geneva.

He is said to be asking $3.5m (£2.1m) for the list of names.

Some estimate it could net the German government $100m.

“Everything should be done to get this data,” Mrs Merkel told a news conference in Berlin, as long as the information was “relevant”.

The seeds for this idea (bank employees stealing bank data and selling it to tax authorities) began two years ago, when a bank employee at a Liechtenstein Bank swiped data and sold it to Germany who sold it on to other tax authorities in Europe.

Some German politicians argue that it is wrong to deal in stolen goods.  I agree.  This is one reason I love Denmark and the Danish sense of ethics. The Danish government refused to buy this data saying it would be unethical to buy stolen data.

However we citizens feel,  it is likely that if governments will pay for stolen data… the trend of bank employees stealing data to sell will grow.  Owning assets outside one’s country of citizenship (especially the USA) can provide some tax benefits if you apply regulations correctly.  Yet compliance can complicate tax reporting and estate planning so be sure that you have and use a tax professional who has knowledge and experience in this field.

Learn more about international investing and tax at Jyske Global Asset Managers forex seminar in Laguna Beach this April . See details here.

Or join us for our next Quantum Wealth Seminar June 24 to June 27, 2010.  See more here


Or Join Merri and me or Ecuador Living’s staff in Ecuador in March 2010.

March 11-14     Super Thinking + Spanish Course, Mt. Dora, Fl.

March 15    Travel to Quito

March 16 Travel Quito Cotacachi

March 17-18  North Andes, Imbabura & Cotacachi Real Estate Tour

March 19-20    Cotacachi Shamanic Tour

March 21  Travel Cotacachi to Manta

March 22-23   Manta & Mid Coast Real Estate Tour

March 24 Travel Manta to Cuenca

March 25-26 Cuenca Real Estate Tour

March 27  Travel Cuenca to Salinas

Mar. 28-29   Salinas & South Coast Real Estate Tour

The Ecuador airfare war makes it cheaper to get to Ecuador than ever before… and there is still time to enjoy great Ecuador tour savings.

You enjoy discounts by attending multiple seminars and tours. Here are our multi tour adventure discounts.

Two Pack… 2 seminar courses & tours $998 Couple  $1,349 Save $149 on couple

Three Pack… 3 seminar courses & tours   $1399 Couple  $1,899 Save $98 single or $348 on a couple or more

Four Pack… 4 seminar courses & tours   $1,699 Couple $2,299 Save $98 single or $697 on a couple or more

Five Pack… 5 seminar courses & tours  $1,999 Couple $2,699 Save $496 single or $1,046 on a couple or more

Six Pack… 6 seminars courses & tours  $2,199 Couple $3,099 Save $795 single or $1,395 on a couple or more

Even Better.  Greater Savings. Our 2010 International Club membership allows you and a guest to attend as many of the 51 courses and tours we’ll sponsor and conduct in 2010  (fees would be $40,947 for all these courses individually) is only $3,500.

If you join the International Club, the entrance fee for 2010 is $3,500.  Your attendance fees at all courses will be waived. You and a guest of you choice can attend courses worth $40,947.You can calculate the savings as our schedule of all 2010 courses here.
International Club 2010 Membership $3,500 Enroll here

International Club Three Monthly Payments of $1,190

Our Spring 2010 schedule starts:

Apr. 12-15   Ecuador Export Tour ($499 or couple $749)
Apr. 17-18   Imbabura Real Estate Tour ($499 or couple $749)
Apr. 20-21  Coastal Mid Coast Real Estate Tour ($499 or couple $749)
Apr. 23-24  Quito & Mindo Real Estate Tour ($499 or couple $749)
Apr. 26-27  Cuenca Real Estate Tour ($499 or couple $749)

The multi tour discounts remain effective for the April tours.

Read “Germany will buy ‘tax evaders’ list if real


Recent Posts

Featured Courses