Ecuador Citizenship

Ecuadoran Citizenship

The Cuenca Chamber of Commerce (CCCuenca.com.ec) hosted a presentation discussing how to become a citizen of Ecuador. This allows you to obtain an Ecuadoran passport. Dual citizenships are allowed in Ecuador and the US.

We may begin the process three years after receiving our Cedula. 

Application must be completed in Quito and the final step of being photographed and getting citizenship papers must also be done in Quito. The process may take 6-7 months.  Total cost is round $1,000, including $200 application fee, $500 naturalization letter, about $250 in notary fees, plus miscellaneous fees.

There are ten paperwork requirements:

1.       Birth Certificate obtained in US and apostatized. Canadians are not subject to apostile requirement by treaty. All other documents may be obtained in Ecuador!

2.       Notarized passport

3.       Notarized Cedula with proof of underlying requirements. Jubilado requires last six months of bank statements showing Social Security deposits.

4.       SRI Certificate (no taxes owed)

5.       Index card issued by Civil Registry

6.       City Hall certificate (no taxes owed)

7.       IESS(social security)  Certificate (no taxes owed)

8.       Ecuador criminal record

9.       “Migratory Movement”  record of international travel based on passport records

10.   Four passport photos with white background.

No tests are required. Only paperwork is required for the process. (Continue learning Spanish-it’s good for you!)

Sorta gives you warm international feeling of freedom, doesn’t it?

US Driver's License Renewal

      Legal: Driver’s License renewal when out of US

Perhaps my latest adventure in bureaucracy will assist others with a problem.

My NC driver’s license expires on my birthday in January 2014. The Dept of Motor Vehicles (DMV) responded to my call by reciting the creed, “must be renewed in person within six months of expiration.”  No exceptions. Humm…I will probably not return to NC this year, so in theory I will be an illegal driver anywhere in the mundo in January 2014.

After receiving an identical answer from a supervisor, I asked a police officer, a friend of Sue’s. After a bit of research she recommended obtaining a duplicate with a fresh photo, then requesting a new license by mail in January.  So I dropped by DMV with renewed optimism, only to be slightly rebuffed by their officer.  "No, you can not do that."

Another call to Raleigh DMV finally clarified the issue. Simply call Raleigh a couple months before expiration, explain my out of country dilemma and they will issue me a new license good for 12 months. During that period I must renew in person.  Now…why didn’t they say that in the first place?

Moral of story: Procedure for success is Ask, Ask, and Ask Again.  Sounds like Latin America!

                     Legal Update

My interest in real estate was recently reawakened as I pondered how to remove more of my shrinking next egg from the devaluing US dollar. “Quantitive easing- unlimited” means the dollar will continue to lose value, robbing savers of their life’s work and retirement income. A 600 square foot terrace with unobstructed views lured us toward the purchase of an investment condo near the historic district.

Legal questions raced through my mind on topics ranging from LLC’s and taxes to domestic help. So, I’ll add to my previous musings with an update.

LLC’s here are much like in the US. Only instead of forming one on line in an hour, several complexities arise. The advantages of avoidance of reporting to the US Treasury as a financial instrument and transferring shares rather than real estate were offset by rules for Ecuadoran taxes and reporting.

An annual tax return prepared by an accountant is minor compared to the 25% tax rate on the first dollar earned!  An LLC must also report property at full value on real estate purchases and sales, causing tax problems for private sellers and capital gains on most properties.

The law requires unanimous consent by all shareholders to sell shares, raise capital or close the company. Gotta catch everyone in a simultaneous good mood!       Or write side agreements.

Domestic help is considered an employee, requiring full benefits, unless one of the following contract requirements is not met:

1.       Payment for services

2.       Supervision by employer

3.       Dependence (setting days for work)

So, you may want to allow your maid or other help to set their own day(s) for work. And since a judge is required to rule in the favor of labor in any ambiguity, write a simple contract stating the person chooses their own day of work. Be businesslike initially…then be generous at your discretion later.

What are the required benefits?  Social security (health insurance, etc) at 20.55% (employer pays 11.15%), 13^th month of pay, 14^th month of pay, 15 days of vacation, and 8.5% reserve fund after 12 months. They add up to nearly 40% of base pay. Minimum wage is now $280 per month. And not paying benefits is now a felony!      Yes, jail is a possibility!

Most employees and independent contractor s assume you will pay bus fare and lunch.

See my previous postings on legal issues. The prior post on labor law/ maids is now inaccurate.

As always, get multiple opinions on these issues. They are a moving target. And I am always fallible!

                 Still learning,     Gary

Drivers License in Ecuador

                                       Drivers' License

We may not have to take the time consuming drivers license course! Yes, the law changed last year.  This info previously appeared is SOZ several months ago, but I missed it. Maybe you did too.

Here is the latest law on Ecuadoran drivers licenses courtesy of Pro-Ecuador blog  http://blog.pro-ecuador.com/?p=3755 :

Thanks to a post on the Ecuador_expats yahoo groups bulletin board, we have the following information.   This is a good site to join, by the way, to read about real people living in Ecuador.
The new law is only for returning Ecuadorians and expats with a series 9 permanent residency visa. It is called “Canje de la licencia extranjera.”  The law states that Ecuador will recognize the validity of International documents and permissions regarding driving in conformity with norms and requisites in international instruments (drivers licenses).

The requisites are as follows:
1.  Original and copy of the original valid foreign drivers license.
2.  Original and copy of your ID documents such as cedula and censo. You receive these documents after you get your residency visa.
3.  Original certificate of authenticity.  This is an apostilled document from your home state’s secretary of state office saying that your driver’s license is valid.  It must be translated into Spanish.
4.  Original and copy of your blood type.  You can get this at the Ecuadorian Red Cross for $2.50.
5,  Two photographs, facing, ID size
6.  Pass the psychometric exam and the driving test (written, practical, and medical).  The psychometric exam is a coordination test.
7.  Fill out the special request form which you get from the Transit office in Quito, or you can download it from the www.ant.gob.ec website.  ANT stands for Agencia Nacional de Transito in Quito.

I have added the websites and its details (in Spanish).

Print this form for application for drivers license:

http://www.ant.gob.ec/index.php/internacionales/homologacion/canje-de-licencia-de-conducir-extranjera-por-licencia-de-conducir-ecuatoriana-art-10-lotttsv

Government website for Transit Authority:  http://www.ant.gob.ec/


CANJE DE LICENCIA DE CONDUCIR EXTRANJERA POR LICENCIA DE CONDUCIR ECUATORIANA     
Con el afán de dar cumplimiento a lo dispuesto en el artículo 10, de la Ley orgánica de Transporte, Tránsito y Seguridad Vial (LOTTTSV) publicado el 29 de marzo de 2011 en el Registro oficial 415; En el cual se reconoce que los ciudadanos ecuatorianos y extranjeros residentes en el país que  tengan una licencia de conducir profesional o no profesional   emitida por un Estado extranjero y que se encuentre vigente, podrán canjear la misma con su similar ecuatoriana. En todos los casos se deberán cumplir los requisitos establecido en el artículo 94 de la citada ley, sin que el documento extranjero sea retirado.
Requisitos:
Original y copia a color de licencia de conducir extranjera vigente
Original y copia de cédula de identidad o pasaporte, visa y censo
Original y copia a color del certificado de la licencia vigente emitido por una de estas instituciones:Por la Embajada o Consulado del país de origen en el Ecuador, en castellano, o
Por la Embajada o Consulado del país de origen de la licencia de conducir de la Representación Diplomática del país mas cercano, en castellano, o,
Por la entidad de Tránsito autorizada del país de origen, el mismo que en caso de no estar en castellano deberá ser traducido y notariado en el Ecuador, o
Por la entidad de Tránsito autorizada del país de origen, apostillada en el caso de que se emita en castellano.
Original y copia del carnet del tipo de sangre
Dos fotografías actualizadas a color tamaño carnet
Llenar Formulario para canje de licencia de conducir extranjera.     (downlod this form to complete)
NOTA:
Al efectuarse el proceso de canje de licencia de conducir extranjera por la licencia de conducir ecuatoriana, las Agencias de Atención al Usuario NO retendrán la licencia de conducir extranjera y SI se tomará los exámenes establecidos en el Art. 94 de LOTTTSV.
El trámite es personal

                                 Let us know how this works!

Domestic Help

                                       Domestic Help

      The reddish font is a warning: it is now a felony to not pay "Social Security" taxes on domestic labor pay. Late last year the law changed and is being enforced. Household help, including maids, must be given benefits required by law.
      Like in last year's great  movie, "The Help," domestics are entitled to retirement and health insurance benefits provided by the government from payroll taxes. Now, who wants to be on the wrong side of that? Jail time and heavy fines are a possibility.
      So, to stay out of trouble, have a labor attorney draw up an employment agreement and pay the modest payroll taxes.
      Do not interpret Cuencano friendliness for more than it is.
      A friend learned the hard way. The very friendly maid went to a labor attorney after they declined to play the game of "another gringo will pay me twice what you are."  That was a shock after months of gringo gifts and generosity.  A simple severance agreement was quickly drawn up and half a month's pay was given as severance.
     The rule of vesting is that on the 15th visit to work in your home, the maid is considered your employee. This applies even she only works 3 or 4 hours a visit. Even visits for family events or holidays (when no work is done) may be considered a labor visit.  And "why didn't you pay me for coming to your birthday party?"
      There's a moral to the story then:  Have a contract paying a fair wage (not excessive so as to impact other employers), then be generous as you desire, outside the contract.
      We are still learning their way of thinking!
   

RUC-Rise...We are in business!

                            SRI (IRS in Ecuador)

If you are a law abiding residente de Ecuador, but want to minimize income taxes, there is a solution for you!

A RUC or Registro Unico de Contribuyentes registers you for business without a trip to Quito. If you earn under $10,000 a year, you pay no income tax to Ecuador. And you qualify for the Rise ("re-say"), or small potatoes personal business registration.

Our monthly taxes of $3.50 must be paid at any bank. We simply provide our 13 digit Rise number and make the payment. Best of all, there are no tax forms to be filed. Can there be anything that simple from the government? Imagine that in USA or Canada!

We are teaching English part time, so our friends at Arco Language Institute walked us through the process. We visited the SRI (think IRS) on Remigio Crespo Avenue, waited in a short line to "take a number" and took a seat. Shortly later, we were beeped to line 17, where an attractive and efficient young lady assisted us. We provided color copies (and displayed originals) of our passport, Cedula and Censo. No cash needed.

The only delay was for our electric bill to prove we were living here. Oops, we had to make a separate trip to get a factura of our paid bill at the Max Uhle utility office. Since our gas and water bills are paid with our apartment dues, nothing else would do!

So now we can bill you for our services, but only in small amounts! Don't ask us for free English lessons ... we may be tempted.

Routine Legal Drama

                                                       

Routine  Legal  Drama

After looking at 50+ homes and apartments we are having real drama attempting to purchase a condo/appt (3rd floor with great views and a quiet neighborhood).  Things like unpaid SS taxes on staff for many years, fumes from gas heaters, recent burglary, and undisclosed issues are part of the culture. No wonder it took us six requests to obtain the annual condo meeting minutes!   We modified our offer to immediate all cash in order to gain a simultaneous closing to 1. pay off existing mortgage, 2. obtain clear title and 3. pay realtor. Closings in stages are common here.  Otherwise, we might have had to wait weeks after paying mortgage to obtain clear title.   Price negotiation requires patience and the help of an unhurried realtor – a rare item here and in the states!    Due diligence is very important.   Things like title insurance and home inspectors are rare items. There is no MLS and anyone can be a ‘realtor’. 

It's an adventure learning business here.   Law is not like US Common Law, but European - statutory only, no court rulings, legal precedents, etc.  Traffic laws and driving culture is like maritime law - the small must give way to larger difficult-to-steer craft, and pedestrians are very small craft. We have learned not to rely on green lights or ‘walk' signals.  City traffic moves quickly, sometimes ignoring things like red lights, especially the famed taxis (and buses!)

  I was impressed when the government caught the Director of Immigration falsifying documents …and immediately fired him and his entire staff.  After two months they recently resumed the process of issuing residency cards or Cedulas (think US green card). Of course our 90 day tourist card has expired. We are still in limbo over residency issues, but yesterday we met with local Director of Foreign Affairs and Immigration. She is going to try to expedite us. Another helpful Cuencana.