Buying and selling property in Ecuador
Foreigners can own property here with the same rights as Ecuadorians. What trips people up is the process: certificates, a binding contract before the deed, municipal taxes and a registry that makes the sale count.
Buying a home
Whether it's your first place in Cuenca or a second purchase after you've settled, we check the property before you commit money, draft or review the contracts, and see the sale through to registration.
Before you sign anything, we confirm:
- the title is clean, with an unbroken chain of owners going back at least 15 years
- there are no liens, mortgages, court orders or lawsuits on the property
- the seller can sell, including a spouse's consent where it's needed
- municipal taxes and utilities are paid up
- the boundaries in the cadastre match the deed, and zoning allows how you plan to use it
- for a condominium, the building rules and the monthly fees (alícuotas)
From offer to registered owner
- Offer and due diligenceWe pull the registry and municipal certificates and run the checks above. Usually two to six weeks before closing.
- Promesa de compraventaA notarised, binding contract that sets the price, deposit (customarily 10%), deadline and conditions. Unlike many US offers, it isn't loosely contingent: backing out usually costs the deposit.
- Taxes and the deedThe transfer tax is paid, then buyer and seller sign the escritura pública before a notary, who checks identities and tax payments. The balance is paid at signing.
- RegistrationThe deed is inscribed at the Registro de la Propiedad, typically in 5 to 15 business days. Only then is the sale effective against third parties.
- After closingWater and electricity accounts (ETAPA and CENTROSUR in Cuenca) and the municipal records move to your name.
What a purchase costs, beyond the price
| Item | Usually | Paid by |
|---|---|---|
| Transfer tax (alcabala) | 1% of the higher of the price or the cadastral value; 1% to 1.5% with local surcharges | Buyer, by custom |
| Notary | Roughly 0.1% to 0.5% of the value, on a sliding scale | Split, by custom |
| Property registry | Depends on the value | Buyer |
| Municipal certificates | About $20 to $50 in total | Buyer, by custom |
Notary and registry fees are set by schedule and change; we confirm the exact figures for your property before closing.
Selling, including when you're leaving Ecuador
Selling has its own taxes and paperwork, and it's often done on a deadline, or after you've already gone. Plan it a few months ahead if you can.
Taxes on the sale
- Plusvalía, a municipal tax of 10% on the profit from urban property, paid by the seller. The taxable profit shrinks by 5% for each year you've owned the property, up to 20 years.
- The profit may also count as income for Ecuador's income tax. The plusvalía you pay can be credited against it.
Selling from abroad
You don't need to be in Ecuador to sell. A special power of attorney (poder especial) lets someone you trust sign for you. It has to name the property and what the attorney may do.
- Signed in Ecuador before a notary: ready the same day. If you know you're leaving, this is the simplest route.
- Signed abroad: before a local notary, then apostilled, translated into Spanish and registered here. Allow two to four weeks.
If the property backs your investment visa
A home used for an investor visa carries a registry note that blocks its sale while that visa is active. It can be lifted once the visa ends, for example when you move to permanent residency, or the property can be swapped for another that still meets the visa minimum. We handle both with the ministry and the registry.
Renting out your property
Long-term rentals in urban areas fall under Ecuador's tenancy law, which favours tenants more than many owners expect:
- housing leases run at least two years for the tenant
- you must give 90 days' notice before the lease ends, or it renews for a year
- you can only end a lease early on specific legal grounds, such as two months of unpaid rent
- a deposit of one month's rent is customary
- rental income is taxable in Ecuador, and you'll need a tax ID (RUC) to report it
We draft leases that work within these rules and help you register for tax.
Finding a property
We're lawyers, not estate agents. Our preferred realtor is Ecuador At Your Service, a Cuenca agency voted Best Real Estate Company by Gringo Post readers. We refer clients to each other, but we're independent businesses, and we'll review a deal found through any agent.
Thinking about buying before you've moved, or using property for residency? Start with the investor visa guides on myecuadorvisa.com.
Tell us about the property
Write to us at ecuador@gracenelsonlaw.com and we'll reply by email, in English or Spanish. If you'd rather talk it through, book a consultation.
Or call 099 611 0451 in Ecuador or (651) 621-3652 from the US, or message us on WhatsApp.