Rental Income Tax

Say you own real estate in Ecuador that you live in half of the year and rent out the rest of the time. You may be wondering how much, if anything, you owe in taxes on that rental income. The basic answer is that the Ecuadorean government charges 25% of the gross rental income as tax. If you are a United States citizen, for example, that rental income also gets counted as income on you tax return. You are not double taxed, however, because the amount you paid to the Ecuadorean government gets deducted from the amount you own to the United States government.
As with all things tax related, there is also a complex answer which involves the various means of reducing the tax burden such as owning the real estate through an offshore corporation. To get the full story about that, you will need to talk to a skilled accountant who specializes in international real estate.

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