Perks for Being 65 and Over in Ecuador

Ecuador was ranked as the #1 retirement destination in the world in 2014 and again in 2015 (and #2 in 2016). Apart from the great weather, inexpensive cost of living, and a host of other attractive advantages, Ecuador also boasts some great perks for people aged 65 and over.

beach retirement

Photo from the US News and World Report, “The 5 Best Places to Retire on the Beach in 2016.”

While government-mandated incentives for people of “tercera edad” (the equivalent of “senior citizens”) are geared towards its own citizens, foreign residents are afforded the same rights as nationals so all of these advantages apply to expats with Ecuadorian residency.

 

Here are some of the benefits you are eligible for as a senior citizen living in Ecuador:

No Waiting in Lines

Senior citizens automatically may go to the front of lines. Isn’t that great? The same applies to pregnant women and women with infants in their arms (which has been quite handy in my case!).

50% off Certain Forms of Transportation

This discount applies to public service transportation via buses and flights. My in-laws usually have to “remind” the money collector on local buses to get their 50% discount: “Disculpe, soy de tercera edad.” (“Excuse me, I’m a senior citizen”).

For flights, you must purchase your plane ticket at one of the in-country agency offices (Avianca, Tame, Copa). Unfortunately, you are not able to get the senior discount if you make your purchase online. Even if the tickets are on sale, you are eligible for the discount. The discount is NOT applied to taxes and fees.

When making your reservation you will need to show your cedula (the national ID card that you will receive once you are a resident).

It’s worthy to note that these flight discounts include trips to the Galapagos as well as round trip international flights initiating in Ecuador.

Note: This discount does NOT apply to other forms of transportation such as taxis, rental vehicles, boats, and trains.

Discount

Your 50% discount includes airfare to the Galapagos.  As residents (of any age) you will also enjoy $6 park admission compared to $100 for non-residents.

 

50% Off Utility Bills and Free Landline Telephone Service

Senior citizens are eligible for discounts on their electric, water, and landline telephones. To sign up to receive the discount, you must go to the service provider and show your cedula when you set up your account. The discount will then be automatically applied to your future monthly bills with the following usage limits:

  • 50% off electric on one electric meter up to 120 kWh/month
  • 50% off water up to 20 cubic meters/month
  • Free basic landline telephone services on one landline (does not include long-distance calls and other services)

If you exceed any of these monthly limits, you will still receive the discount up to the specified limit and then you will pay 100% on the excess consumption.

You may receive this benefit as a renter as long as your name is on the utility bills.

 

50% Off Entertainment Events

Folks who are 65 and over also receive 50% off tickets for cultural and sporting events, including movies. Again, you will likely be required to present your cedula as proof of age and residency status.

Quito-FootballFlag

Attending a game of soccer (“fútbol”) in Ecuador is an experience to be remembered!

 

Reimbursement of Sales Tax

Senior citizens are eligible to receive an reimbursement of their sales tax. Ecuador’s sales tax on most goods and services is 12%. It is called IVA (“impuestos de valores agregados”) and is the equivalent of “value-added tax” or VAT. You will see this IVA charge added to your restaurant, grocery, hotel bills, etc..

There is another sales tax, ICE (“impuestos de consumos especiales”), whose value varies significantly, from 10% for soft drinks to 300% for firearms.

Senior citizens are eligible to receive a reimbursement of their IVA and ICE; for 2016 the maximum annual amount is currently $1,830.

Seniors can submit their reimbursement forms online and receive their monthly reimbursement in a matter of days as a direct deposit to their Ecuadorian bank account.

Senior citizens are eligible to get sales tax back up

Senior citizens are eligible to get their sales tax reimbursed each month for their food, housing items, clothing, transportation, communication, and cultural and sporting events.

To set up your account with the SRI (the equivalent of the IRS), you are required to have a cedula, a copy of your Certificate of Visa Registration (“Certificado de Empadronamiento”) and proof of an Ecuadorian bank account in your name. When you register, you will be given a pin to access the website. Your receipts (“facturas”) must be in your name with your cedula number. Details can be found on SRI’s website (in Spanish).

Note: If you are renting, you shouldn’t be charged IVA. Nor are you charged IVA for purchasing property. You do need to pay IVA if you rent out a space for commercial use.

 

Reduction of Income Tax

Income tax rates in Ecuador are based on one’s annual salary. This tax is paid when an individual’s net yearly income exceeds a certain limit and is called the “Impuesto a la Fracción Excedente.” For people over 65, the minimum income limit is doubled. For example, the minimum limit for 2016 is $11,170. In other words, senior citizens with a yearly income under $22,340 will not be required to pay any income taxes.

 

Exemption of Municipal Taxes

When selling property, the seller is typically responsible for paying a municipal capital gains tax called “Alcabalas.” Senior citizens have the advantage of being exempt from paying alcabalas for the sale of a property valued at $183,000 or less (the equivalent of 500 times the monthly minimum wage, which for 2016 is currently $366/month). If the property value exceeds this amount, taxes are paid on only the excess.

An interesting case study to be aware of is the example of a property owned by spouses, one of whom is 65+ and the other is under 65. According to Ecuadorian law, the property is automatically owned equally by each spouse, and thus each spouse in theory is responsible for paying 50% of the acabalas at closing. However, according to law, the 65+ spouse would be exempt so the actual cost of this tax would be half of the declared amount.

My in-laws have been enjoying their Ecuadorian residency since 2012.

My in-laws have been enjoying their Ecuadorian residency here on the coast since 2012.

 

Note: This post was created in April 2016 and any information provided here may be subject to change!

Ecuador’s Halftime Super Bowl Ad

Ecuador saw a 14% increase in international tourism between the years 2013 and 2014 and are hedging their bets that an expensive ad during the Super Bowl on February 1 will have big payoffs for even greater numbers of visitors in 2015.

Ecuador is the first foreign country to buy an advertising spot during the Super Bowl to promote tourism. According to Ecuador’s Ministry of Tourism, the 30 second Super Bowl ad that boasts, “All You Need is Ecuador,” cost $3.8 million (earlier news stories reporting lower amounts did not include taxes).

Ecuador's Super Bowl commercial boasts that "All You Need is Ecuador"

Ecuador’s ambitious Super Bowl halftime commercial boasts that “All You Need is Ecuador”

 

The Super Bowl advertisement will be featured during half time and will be aired in 13 major markets, including New York, Boston, Philadelphia, Chicago, Seattle, L.A., San Francisco, Dallas, Houston, Denver, Atlanta and Miami. There will be an additional 8 commercials that will run during NBC’s “Today Show” leading up to the Super Bowl.

The focus of this bold campaign is to highlight Ecuador’s four unique tourist destinations: Galapagos, Coast, Andes and Amazon. Truly, this small country has a lot to be proud of!

The "All You Need is Ecuador" campaign highlights

The “All You Need is Ecuador” commercial is to be aired during the Super Bowl and highlights Ecuador’s four distinct regions

 

Inspired by The Beatles’ “All You Need is Love” tune, the first phase of the “All You Need is Ecuador” campaign was launched in April 2014 and was featured in 19 major cities throughout the world including NYC, Paris, Madrid, London, Berlin, and Amsterdam to name a few. The $19 million campaign lasted 10 days and consisted of displaying one giant letter in a major plaza of each participating city. Together the letters formed the words “All You Need is Ecuador.”  Each letter was covered with iconic images that show off Ecuador’s tremendous beauty and diversity, including giant tortoises, rare birds and orchids, colonial buildings and cathedrals, and spectacular natural landscapes.

Unique campaign strategy

The Ministry of Tourism’s unique campaign of placing giant letters from their slogan in key cities around the world.

 

In conjunction with the theme of “All You Need is Ecuador,” the government of Ecuador has adopted the slogan of Ecuador: Ama la Vida which can now be seen on buses, sides of government buildings, and even Ecuadorian product packaging. This upbeat reference to savoring life is reminiscent to me of Costa Rica’s famous “Pura Vida!

Ecuador's new slogan

Ecuador’s new upbeat slogan

 

While the first phase of the “All You Need” campaign focused on highlighting the richness and diversity that Ecuador has to offer, the airing of Ecuador’s Super Bowl commercial presents the second phase which aims to emphasize how all of these incredible experiences are concentrated into one tiny country. “One Country. Like Nowhere Else, All in One Place, So Close” is the motto.

Only the size of the state of Nevada, Ecuador offers much to explore.

Merely the size of the U.S. state of Nevada, Ecuador is a rich play land ready for exploration. A 30-minute domestic flight west from the snow capped Andean volcanoes transports you to the beautiful, warm Pacific coast. Thirty minutes to the east and you’ve arrived to one of the most biodiverse rainforests on the globe. Where else in the world is that possible?

 

Ecuador’s government increasingly recognizes the economic potential of tourism saying that it is the future of Ecuador. Last year, approximately $600 million dollars was generated by the tourist sector. The goal of Ecuador’s Super Bowl ad is to make the estimated 120 million spectators fall in love with this little known place and come visit.  Of the 1.5+ million tourists to Ecuador in 2014, twenty-one percent visited from the U.S. Officials say that  a 1% increase in U.S. visitors to Ecuador in 2015 will cover the money invested on the Super Bowl ad.

To wrap up this post, below is a playlist of eight promotional videos from the Ministry of Tourism that are definitely worth the watch.

 

It is no doubt an exciting time to be here in Ecuador watching a myriad of transformations taking place.  When we bought a house on the coast in 2006 we never could have imagined how quickly Ecuador would become a global destination for both tourists and expats alike.

 

**UPDATE (Feb 5): Here is the final advertisement that was run at halftime.

 

Smaller than Nevada but that’s a good thing

Ecuador is just slightly smaller than the state of Nevada in the US.

This geographic factoid becomes increasingly difficult to believe once you begin to explore the incredible diversity that Ecuador has to offer.
The spectacular Andes mountains run north to south and roughly divide the country into thirds.
In the central Andean region, you will observe towering volcanoes (many still active) and snow and glacier-covered peaks. In the surrounding valleys and foothills are attractive colonial cities, colorful indigenous markets, high elevation lakes and hot springs, and historic haciendas.
On a clear day in Quito, ride up 3,600 feet to a final elevation of over 13,000 ft on the “teleferico” (gondola). From there you will see the vast extent of the highlands, including three very impressive volcanoes (Antisana 18,700 ft; Cayambe 18,725; and Cotopaxi 19,347 ft). If you are an outdoor enthusiast, there are endless activities to keep you busy!

Tom approaching the summit of Cotopaxi
Lynn biking in the Andean foothills
Donkey we befriended along the bike ride
In the eastern third of the country, the “Oriente,” you find yourself in the headwaters of the Amazon Basin. This is the land of cloudforests and rainforests teeming with waterfalls and abundant life including jaguar, monkeys, tapir, and dazzling tropical birds. Tom and I actually saw 8 species of monkey in 2 days near Ecuador’s border with Peru! Here in these remote areas exist an impressive diversity of indigenous groups, many of whom still maintain their traditional ways of life. There are jungle lodges to visit, white-water rafting trips to take, and more hot springs to soak in.

El Jardin in Puyo

Rafting on the upper Pastaza
Rainforest at Tashapi (near Puyo)
Then of course, heading west you will drop down to the Pacific Ocean. We enjoy travel to the Andes and the Oriente but for living purposes, we absolutely love the coast!

Tom’s mom, JoAnn, enjoying a book and a good “hammocking” session at our house in Crucita

Tom, Eduardo, Paola and Red (who purchased a beachfront lot from us last March) making sushi rolls from fresh tuna
The beach in Crucita where we live
The icing on Ecuador’s cake of course is the Galapagos Islands, 300 miles off the coast.
Young sea lion
Blue-footed boobie with baby
While Ecuador is not a big country, we hope you’re beginning to recognize that there are so many amazing places to visit and explore!
And being small definitely has its benefits! A flight from Quito to Manta is a mere 30 minutes!
So imagine leaving your home on a cold wintry morning in the US, landing in Quito around 4pm and then arriving to the coast in time to enjoy your seafood dinner at sunset! Yes, this can and does happen! We invite you to give it try!