Baby Boomer Retirement in Ecuador

by Kathleen Peddicord

Everything you've heard about Ecuador is true. The country offers perennial springtime in the mountains...a land of longevity in Vilcabamba...and Spanish-colonial charm in Cuenca...all of which can be enjoyed on even an extremely modest budget.

Ecuador is not known for its beaches, and its coast remains relatively undeveloped. Current talk of a new beach road, though, is bringing investor attention to one particular stretch of coast, giving our editors reason to return Ecuador to our active radar screen.

If you retire in Ecuador, you can rent a condo in the beautiful colonial city of Cuenca for $300 a month, according to International Living magazine, which gave the country its No. 1 spot in its 2009 World’s Top Retirement Havens. Plus, it states, retirees never have to wait on line!

Activities: Hiking in tropical cloud forests, beaches, bird watching, shopping, UNESCO World Heritage sites, visits to the Galapagos Islands
Health care: Adequate, inexpensive medical care is available in the major cities, but services are limited beyond that.
Human development index: 80.6
Weather: Tropical to temperate

Source: GlobalPost.

Top Health Insurance Options For The Retiree Abroad

The Best Place to Retire on a Budget

Cuenca is perhaps the most affordable place in the world to retire comfortably. You could retire here on less than $800 per month.

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Ecuador at a Glance

Population	13.7 million (July 2007)
Gross Domestic Product (GDP)	$98.28 billion (2007)
GDP Per Capita	$7,100 (2007)
Inflation Rate	3.3% (2007)
Currency	U.S. Dollar
Exchange Rate Versus U.S. Dollar	N/A
Language	Spanish (official)
Capital	Quito
Population of Capital City	1.8 million (2001)
Time Zone	GMT minus 5
Seasons	Coastal area is tropical--wet, warm/hot year-round Andean Highlands is temperate--four seasons
International Dialing Code	593
Electricity	120-127 V/60 Hz; Plug Types: A & B (U.S. style)
	Presidential Republic
Name and Party Affiliation of Current Leader	Rafael Correa, Alianza PAIS
Income Tax Rate for Residents	5% to 25%
Property Tax	0.025% to 0.5%
Capital Gains Tax	25% of the increase in assessed value
Inheritance Tax	0% to 35%
Rental Income Tax	Taxed as regular income
Transfer Tax	1%
Sales Tax	12%
Restrictions on Foreign Ownership of Property	Permisson needed (usually granted) to acquire land within 30 miles of the coast
Local Chamber of Commerce	www.ccq.org.ec Av. Republica y Amozonas Edif. De las Camaras, Pisos 5 y 6 Quito, Ecuador This e-mail address is being protected from spambots. You need JavaScript enabled to view it
American Chamber of Commerce	www.ecamcham.com Av. 6 de Diciembre y La Nina Edf. Multicentro, Piso 4 Quito, Ecuador Tel: (593-2)507-450
Primary Exports	Petroleum, bananas, cut flowers, shrimp, cacao,coffee, hemp, wood, fish
Residency and Visa Requirements	Tourist Visa: automatic 90 days upon entry Residency: Retirement, Real Estate/Securities Investor, Industry Export Investor, Executive Citizenship: Three uninterrupted years of legal residency
Special Benefits for Foreign Residents or Retirees	None
National Airline	TAME www.tame.com.ec