Retiring in Ecuador: a complete guide
From the reasonable cost of living to the accessible visa process, here’s everything you need to know if you’re considering retiring in Ecuador.
Summary
Ecuador is one of the cheapest destinations globally, with retirement costs of less than $800 per month.
Emigrating to Ecuador as a senior US citizen is a relatively straightforward process.
Ecuadorian retirees get 50% off of all basic services, including airfare, rent, and utilities.
Learn more about your retirement options by getting matched with a financial advisor and planning a sound retirement strategy.
What are the pros and cons of retiring in Ecuador?
Ecuador’s low cost of living and simplified emigration program for US seniors make it an attractive retirement destination but not necessarily a perfect one. These pros and cons can give you a broader perspective on whether retiring in Ecuador is the right decision for you.
Pros
Economically competitive conditions: Ecuador is commonly referred to as the world’s best place to retire well. Healthcare, rent, and other essential goods and services are much more affordable in Ecuador than in the US.
Warm weather year-round: Ecuador’s climate is warm and consistent throughout the year, making it a pleasant place to live and explore.
Large expat communities: Ecuador is a popular retirement destination, so you can connect with other retirees, many of whom are likely to speak English.
Cons
Underdeveloped infrastructure: Public transport, bureaucracy, and access to general public services can be limited. However, infrastructure inside major cities is sufficient.
Limited English is spoken outside of major cities: Although you are likely to encounter many English-speaking expats in Ecuador's major cities, other regions almost exclusively speak Spanish.
Governmental corruption: Ecuador’s government is ranked 9.1 out of 10 for corruption, making it one of the most corrupt in the world. This can result in civil unrest and theft of public funds. Is Ecuador a good place to retire?
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What’s the average cost to retire in Ecuador?
Whether you’re retiring to Ecuador, Thailand or Turkey, one fact will remain the same: Before settling on a decision, you'll need to confirm that you’re 100% able to afford the costs associated with retiring to the country you choose. This will include visa application fees, packing and moving expenses and living costs once you’ve arrived.
Overall, the cost of living in Ecuador is about 54% lower than in the US, which is good news for most. In the Ecuadorian city of Cuenca, for example, a retired couple needs around $20,400 annually to get by.
Expats in Ecuador also enjoy the same rights as Ecuadorian citizens, meaning as foreign resident retirees, you’ll get the chance to benefit from:
Halved prices on all public and private transport (including international flights)
Discounted electric bills
Discounted water bills
Free local landline phone services
Discounted tickets for certain events
Tax exemptions and reductions
As you’re budgeting for a potential future in Ecuador, note that one of the minimum requirements for the Ecuador Retirement Visa is proof that you’re earning a minimum monthly income of $1,275. You’ll also need to add $250 to that figure per dependent if applicable.
What are the best places to retire in Ecuador?
If you pick the right place to retire in Ecuador, your golden years can be filled with balmy weather, a laid-back lifestyle, authentic Ecuadorian cuisine, and extremely affordable accommodation. Take a look at this list of the best places to retire in Ecuador:
Cotacachi: This region has a thriving expat community and is only 20 minutes away from the capital city. Luxury apartments can be rented here for as little as $1,300 per month.
Quito: Quito is Ecuador’s capital city and is on UNESCO’s Official World Heritage City list. It features indigenous architecture, a historic center, easy access to healthcare services, and an airport, among many other lifestyle amenities.
Otavalo: Ecuador’s textile capital, Otavalo, is a comfortable and community-focused suburb close to Quito that has year-round Spring weather and plenty of US expats to connect with.
Cuenca City: Cuenca is the third largest city in the country and a UNESCO World Heritage Site. It’s a stellar retirement destination if you’re hunting for a laid-back lifestyle, a mild climate and excellent cuisine.
At what age can you retire in Ecuador?
Ecuadorian retirement age is 65. However, as a US expat who has emigrated to Ecuador, you do not need to meet this age requirement to retire there. You only need to meet the minimum income requirement of $800 per month.
Only those who are over 65 may apply for tercera edad (elderly benefits).
What is the average cost of retirement in Ecuador?
At approximately $800 - $1,000 per month, the average cost of retirement in Ecuador is considered one of, if not the lowest in the world.
Do you pay taxes after retirement in Ecuador?
After emigrating to Ecuador, retirees are not required to pay taxes.
Furthermore, registered retirees are given a 50% discount on all basic services, including national and international airfares, and are not required to contribute to Social Security.
Foreigners are afforded the same retirement benefits as Ecuadorian citizens.
What programs are there for emigrating to Ecuador?
To retire in Ecuador, you must emigrate using a residency visa intended for foreigners.
After two years of living in Ecuador as a resident, you can apply for permanent residence.
Once you are over the age of 65, you will be recognized as eligible for retirement status and benefits.
What visas do I need to retire in Ecuador?
You need an Ecuadorian residence visa to retire in Ecuador as a US citizen.
You will need to provide proof that you earn more than $800 a month in retirement income, plus $100 extra for every dependent you have.
US citizens can enter Ecuador for 90 days within a year without a Retirement Visa. Still, they must have health insurance coverage for that 90-day timeframe and pursue visa options if they want to stay longer.
Later down the line, if you choose to remain in Ecuador permanently, you’ll have the chance to get an Ecuador Permanent Residency Visa, often referred to as a PRV. You can apply for this 21 months after you receive your Ecuador Retirement Visa and start living in the country.
What are my healthcare options in Ecuador?
Ecuador’s healthcare system, Institute Ecuatoriano de Seguridad Social, or IESS, is universal, which means it is accessible to anyone, regardless of income, status, or citizenship.
Foreign residents can enroll for a monthly fee charged at 17.6% of their income.
Health insurance and medical treatment are far cheaper in Ecuador than in the US. Dental care is also significantly cheaper, costing 80% less than similar care in the States.
You do not need private medical insurance to access healthcare in Ecuador, but due to the system’s lack of resources, obtaining medical insurance is advised for those retiring in Ecuador.
What is the housing market like in Ecuador?
Ecuador homes will usually be cheaper than homes in the US thanks to the country’s overall lower cost of living. Certain areas are, however, still more expensive than others.
For comparison:
| Location | Rent per month for a one-bed apartment | Apartment price per square meter |
|---|---|---|
| Cuenca | $423.08 | $1,340 |
| Manta | $490 | $1,864 |
| Guayaquil | $394.44 | $1,150 |
| Daule | $250 | $1,000 |
What happens to my retirement benefits if I retire in Ecuador?
If you’re eligible for Social Security, you’ll still be able to collect and receive these payments in Ecuador, and you won’t be taxed on this income by the Ecuadorian government. If you maintain a US bank account, it should be easy enough to receive and withdraw monthly benefit checks around the country.
There shouldn’t be much of a barrier regarding holding onto and maximizing your retirement benefits. Also, since you might save on living costs by moving to Ecuador, your relocation decision could see you giving yourself more disposable income than you anticipated.
Is Ecuador a good place to retire?
There are many good reasons to retire in Ecuador. Its spring and summer-like climate, incredibly low cost of living, and vibrant expat community make it a more than viable place to settle down for retirement.
The number of retirement benefits you can access if you emigrate to Ecuador also makes it an appealing destination for living out your golden years.
Get expert retirement advice
Ecuador is a beautiful, tropical-climate country that is considered a good place to retire for its affordability, interesting cultural heritage, and long list of retirement benefits for expats. However, retiring in Ecuador also means facing the realities of a lack of political stability and limited infrastructure.
To plan for your retirement, let Unbiased match you with an SEC-regulated financial advisor who can offer you expert advice.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.