Ecuador lets you send money abroad freely — and charges 5% for it. Here is what the ISD covers in 2026, which flows leave at 0%, why the import credit disappeared, and how foreign groups structure their payments.
Ecuador uses the US dollar, has no exchange controls and lets you send money abroad whenever you like. It simply charges you for doing so. The Impuesto a la Salida de Divisas (ISD) is a 5% tax on almost any transfer of money out of the country — payments to foreign suppliers, service fees to a parent company, loan repayments, card spending abroad.
For a foreign-owned company, the ISD is often the tax that decides the structure. The good news is that the two flows owners care about most — dividends and properly structured loans — can leave Ecuador without it. This guide sets out what is taxed, what is exempt and how foreign groups organise their payments.
| Payment abroad | ISD in 2026 | Notes |
|---|---|---|
| General rate | 5% | Back to 5% since April 2024 |
| Imports of listed raw materials and inputs | 2.5% | Decree 272; list of about 1,120 tariff lines since June 2026 |
| Imports of listed pharmaceuticals | 0% | Decree 272; 2026 only |
| Fuel imports | 0% | |
| Card spending or withdrawals abroad | 5% above US$5,188.26 a year | Per person, all cards together |
| Transfers by individuals | First US$1,446 per fortnight exempt | 3 basic salaries; cards excluded |
| Cash carried out | 5% above US$1,446 | Plus one basic salary per accompanying minor |
The tax applies whether or not a bank is involved: transfers, cheques, offsets between accounts and payments made from abroad on behalf of an Ecuadorian company all count. Banks, the Central Bank and couriers withhold it automatically.
Law and practice: Ley Reformatoria para la Equidad Tributaria (LRET), arts. 155–163; Executive Decree 272 of 30 December 2025 (differentiated rates for 2026); MPCEI Agreement 2026-0035-A (list in force from 1 June 2026); SRI Resolution NAC-DGERCGC24-00000045 (card exemption).
Payments made from abroad
If an Ecuadorian resident pays a foreign expense from money held abroad, the law presumes the money left Ecuador and the ISD is due — settled once a year, in July.
Export proceeds that stay abroad
If an exporter does not bring its sales proceeds back, ISD is due on them six months after the goods reach their destination.
Both presumptions target the same habit: keeping money in a foreign account and paying from there. For a company with Ecuadorian sales and a parent abroad, that habit is expensive.
| Payment | ISD | Main conditions |
|---|---|---|
| Dividends to a foreign company or non-resident individual | Exempt | No Ecuadorian-resident owners in the chain above the payer |
| Repayment of foreign loans (principal and interest) | Exempt | Lender a foreign financial institution or qualified lender; term 180+ days; rate within the reference rate; not a related party in a tax haven |
| Return of capital | Exempt | Up to the capital originally brought in and registered with the Central Bank |
| Payments by free-zone operators | Exempt | Free-zone regime under the 2023 law |
| Imports under an investment contract | Exempt | Capital goods and raw materials, within the contract’s amounts |
| Services, royalties, intra-group charges | 5% | No general exemption |
The dividend exemption is the one that matters most. Dividends paid to a foreign company or a non-resident individual leave without ISD, provided no Ecuadorian resident sits in the ownership chain. The 10% dividend withholding tax still applies — see our dividend guide.
Law and practice: LRET art. 159 and its regulation. The loan exemption is lost if 50% or more of the balance is repaid within 180 days. Confirm the conditions against the current consolidated text before a large payment.
Until the end of 2024, ISD paid on imports of listed raw materials and capital goods could be credited against income tax. That credit is gone: from 2025, ISD is simply a deductible expense or part of the cost of goods. Credits from earlier years can still be refunded.
The 2.5% and 0% rates for listed imports were introduced partly to soften that loss. Habitual exporters can still recover ISD paid on imported inputs on the same list.
Law and practice: Constitutional Court ruling 58-11-IN/22; Executive Decree 468 (2025 rates); Tax Policy Committee resolution CPT-RES-2026-001 of 2 April 2026 (exporter refunds).
Not as management or service fees: dividends to a non-resident owner leave without ISD; fees pay 5%.
A loan from a foreign bank or qualifying lender, 180 days or more, at or below the reference rate.
So that capital can later be returned without ISD.
Inputs on the 2.5% or 0% lists save half or all of the tax.
Both exempt imports, and free zones exempt most outflows.
The presumption catches it anyway.
One structure that does not work: having a related company in a low-tax jurisdiction lend to the Ecuadorian company. The loan exemption excludes related lenders in tax havens, and Ecuador now asks taxpayers to assess for themselves whether a jurisdiction qualifies.
The Impuesto a la Salida de Divisas, a 5% tax on money transferred or paid out of Ecuador, including payments to foreign suppliers, service fees and card spending abroad above an annual allowance.
Yes, the general rate is 5%. For 2026, listed imports of raw materials and inputs pay 2.5% and listed pharmaceuticals 0% under Decree 272.
No, if paid to a foreign company or non-resident individual with no Ecuadorian residents in the ownership chain. The dividend withholding tax still applies.
Yes, for loans from foreign financial institutions or qualifying lenders with a term of at least 180 days and interest within the reference rate, unless the lender is a related party in a tax haven.
Not since 2025. The credit for ISD on imports ended on 31 December 2024; ISD is now a deductible cost. Exporters can still recover ISD on listed inputs.
No. Payments by Ecuadorian residents from foreign funds are presumed to be outflows and taxed once a year.
US$5,188.26 a year per person across all cards, for 2025 to 2027.
The 10% dividend tax, ownership reporting and a Paraguay holding.
SAS, RUC and SRI, handled from a Paraguay base.
Tell us how money will flow between Ecuador and your group. We map the ISD on each payment and set up the exemptions — fixed quote within one business day.
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