When thinking about making an investment in another country there are many variables to consider: the industry, the market, the regulations… but they can all sum up in one question: does that country want you to invest on it?
If Ecuador is the country you are considering, the answer is OF COURSE!
And if you are not considering Ecuador, maybe we can offer some information that will change your mind:
MARKET ACCESS
From Ecuador investors gain access to a market of 1.000 million people! Its agreements with Mercosur, the European Union, the European Free Trade Association, México and its on-going negotiations with India, Canada and Corea, among others, make of the country a giant door to many opportunities.
BUSSINESS CLIMATE
Ecuador is among the countries with the best economic performance in Latin America, with an average growth of 7.3% per year from 2007 to 2017, one of the lowest inflation rates in the region due to its fully dollarized economy, free trade zones and relaxed labour laws.
Moreover, it is one of the very few countries that have a Constitution that mandates the government to stimulate free competition, to promote private investment and to guarantee the execution of contracts.
The result? Non-discriminatory treatment for foreign investors, freedom of production and commercialization of goods and services, simplified structure for approval of investments through the Strategic Committee for the Promotion and Attraction of Investments, freedom to access external and internal credits and security and freedom of mobility.
INVESTMENT INCENTIVES
The country’s government has changed through time but its objective of attracting direct foreign investment has not. Ecuador counts with many laws and regulations that provide incentives, exceptions and benefits for those who bet on it, such as:
O% Income Tax
0% Tax On Currency Outflow - on dividends, payments for credit operations by international financial and non-financial institutions, regular exporters/importers.
0% Value Added Tax – in 9 industries!
5 ZEDES - customs destinations installed in delimited geographic areas where new investments can be established with tax incentives, simplification of customs processes and facilities to carry out productive chains in compliance with the provisions of the Law.
Exemption from Income Tax and its advance for 15 years, for new productive investments in basic industries.
And as if that weren’t enough, there are temporary laws, like the Organic Law of Solidarity (which expires in May!) that offer extra benefits for investments like tax exemptions and remissions of interest of obligations to encourage the social, economic and productive reactivation in certain areas.
So Ecuador definitely wants you to invest on it… and now it is up to you to take the opportunity!