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Labor Laws in Ecuador

  • Annual Leave: Minimum of 15 days
  • Maternity Leave: 12 weeks
  • Public Holidays: 11
  • Workweek: 40 hours per week.

Income Tax in Ecuador

Individual income taxes are progressive, ranging from 0% to 37% based on the worker’s earnings.

Value Added Tax (VAT) in Ecuador

The standard VAT is 13%.

Social Security in Ecuador

  • The Social Security Institute of the government manages the social security system, which covers health benefits, pensions, and certain social payments.
  • All private, public, and foreign employees and self-employed professionals are covered by social security legislation.
  • Social security contributions must be paid to the Ecuadorian Social Security System.
  • Private employees under an employment relationship will contribute at the rate of 9.45% of remuneration arising from employment (except certain statutory social benefits received.)
  • Special rates apply to employees working in special sectors of the economy.
  • Voluntary contributors can contribute at a rate of 17.6% over their income.
  • The employer contribution amounts to 12.15% of total remuneration.

Work Visas Ecuador

Here is a summary of the work visas available to foreigners to work in Ecuador:

For long-term stays, individuals will need a resident visa. Ecuador provides two main types of resident work visas.

  • Professional Visa (9-V Visa): For individuals with degrees working in their professional field.
  • Technician Visa (10-V Visa): For technical experts with a contract from Ecuadorian companies.

Ecuador offers a Digital Nomad Visa known as the Rentista Visa, allowing individuals to live and work in Ecuador for up to two years. This visa is available to those who work remotely for companies based outside of Ecuador.

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