Your essential guide to buying property in Ecuador

Unlike many other countries, Ecuador has no restrictions on foreign property ownership.

Ecuador’s stunning beaches, charming colonial towns, and affordable cost of living have made it a hotspot for expats and investors looking to own property abroad. But a common question arises: can foreigners buy property in Ecuador? The answer is yes. Unlike many other countries, Ecuador has no restrictions on foreign property ownership, making it an attractive option for those looking to invest, retire, or relocate.

If you’re considering buying property in Ecuador, this guide breaks down everything you need to know.

THINGS TO KNOW WHEN BUYING PROPERTY IN ECUADOR

Before purchasing Ecuador real estate, it’s essential to understand how the market works and the scope of what you can do as a foreign buyer. Here are some factors to consider.

1. Foreigners can fully own property in Ecuador

   Foreigners have the same property ownership rights as Ecuadorian citizens. There are no restrictions on property size, location, or type. Furthermore, a valid passport is the only requirement you need to purchase real estate. You can own property outright in your name or through a business entity (such as an LLC) without needing a local partner, special permits, or residency.

   ➜ Fee simple ownership

   Unlike in some countries where foreign ownership is limited or leasehold agreements are common, Ecuador allows fee simple ownership. That means you own both the land and any structures on it permanently and without conditions. What you do with it— sell, rent, bequeath it to your heirs, or develop it— is entirely up to you.

   ➜ No restrictions on property type

   You can buy any type of real estate property in Ecuador, whether it’s a beachfront property, a commercial space, a city condo in Quito, or farmland.

   The only exception applies to land within 50 kilometers (31 miles) of Ecuador’s international borders. For this, you’ll need special permission— a requirement due to national security laws. This rule, however, rarely affects foreign buyers as most of them invest in popular locations like Cuenca, Quito, Yunguilla Valley, and Puerto López.

   Key points: Buying property in Ecuador is as straightforward as it gets. The market is open, affordable, and accessible, making it one of the easiest places in the world for foreigners to invest in real estate. No residency or citizenship required Full ownership rights, including the ability to sell or rent Option to buy in an individual’s name or through a business entity Investor Visa eligibility for purchases of $46,000 or more No additional taxes or fees for foreign buyers

2. The buying process for foreigners

   Now that we’ve established— multiple names— that foreigners can buy property in Ecuador, it’s time to go over the homebuying process in Ecuador. Once you find a property, the transaction moves quickly, and with the right legal guidance, ownership can be secured in a matter of weeks. Here’s how it works.

   • Step 1: Find the right property– Are you looking for a colonial home in Cuenca, a beachfront retreat in Puerto López, or a mountain villa in Yunguilla Valley? Ecuador real estate has a variety of options at prices well below North American and European markets.

     Most buyers work with a real estate agent to find available properties. While private sales exist, a trusted local agent can help with pricing, negotiations, and verifying the legitimacy of a property. Choose an agent familiar with foreign buyers and real estate laws. A bilingual agent is best, as most contracts and negotiations will be in Spanish.

   LIVE THE LIFE can help you locate your dream Ecuador property—
   and negotiate for it! Click here to learn more.
   

   Foreign buyers can invest in any type of real estate property in Ecuador, whether it’s a city condo or a beachfront property in a coastal village.

   • Step 2: Hire a real estate attorney– A real estate attorney isn’t required by law, but you’ll want one. Ecuador real estate may be foreigner-friendly, but legal oversight ensures you avoid costly mistakes, scams, or paperwork errors. They’ll verify the property’s ownership, check for outstanding debts or liens, ensure local zoning laws match your intended use— especially important for farmland and commercial properties— and review and translate contracts.

     In short, hiring a lawyer before making an offer prevents problems down the line. This can set you back $500 to $1,500 in legal fees, depending on the property’s complexity.

   • Step 3: Make an offer and sign the purchase agreement– Once you find a property, you or your agent can submit an offer to the seller. If this is accepted, both parties will sign a promesa de compra-venta (promise of sale). This contract locks in the price, terms, and conditions of the sale and typically requires a deposit of 10% to 20% of the purchase price.

     The promise of sale also includes other essential information, such as the payment schedule, closing date and legal obligations, and most importantly, penalties if ever one backs out of the deal. Remember that this document is legally binding; backing out without a valid reason can mean forfeiture of your deposit.

   • Step 4: Title search and due diligence– Before you finalize the purchase, your attorney will conduct a full title search through Ecuador’s Land Registry Office. This ensures that the property is clear, properly registered, and free of unpaid taxes or fees. Outstanding municipal taxes or utility bills could be transferred to you if not cleared.

     If any issues arise, your attorney will work to resolve them before closing. We highly recommend not to skip this step so you can complete your real estate investment confidently and with peace of mind.

   • Step 5: Finalize the sale and transfer of ownership– Once everything checks out, both parties meet at a notary public to sign the final deed (Escritura Pública). There, you will pay the remaining balance, register the new ownership with the Land Registry, and receive the official property documents as proof of ownership.

     After this step, the property is legally yours— fully owned with no restrictions. The entire process, from making an offer to closing, can take as little as four to eight weeks if all paperwork is in order.

   Key points: The homebuying process in Ecuador is simple and efficient. Foreign buyers follow the same steps as Ecuadorian citizens, with no extra requirements or bureaucratic hurdles. A real estate attorney is not required but highly recommended. Work with a bilingual real estate agent experienced with foreign buyers. Title searches and due diligence are crucial. Final ownership transfer happens at a notary public. Closing can take as little as four to eight weeks.

3. Types of financing for buying property in Ecuador

   Foreigners can buy property in Ecuador, but financing options can look a little different from what you might be used to back home. While traditional bank mortgages are available, they aren’t always the easiest options for foreigners. The good news is that there are plenty of ways to make property ownership happen.

   ➜ Cash payment

   If you’re in a position to pay for your property upfront, you’ll find that cash is king in Ecuador’s real estate market. This is by far the most common way expats and investors buy homes, mainly because bank loans for foreigners can be challenging to obtain.

   Most transactions are completed via wire transfer from your home country or Ecuadorian bank account. If you’re bringing in funds from abroad, it’s a good idea to talk to your bank beforehand to ensure a smoother transfer with no unexpected delays.

   ➜ Ecuadorian bank mortgages

   Getting a mortgage from an Ecuadorian bank as a foreigner is tricky, but not impossible. If you already have permanent residency and a strong local credit history, you may qualify. But the terms aren’t always ideal compared to what you might expect from a U.S. or European lender:

   • Shorter loan terms, typically 5 to 15 years instead of 30-year terms in the U.S.
   • Higher interest rates, which can range from 9% to 14%.
   • Larger down payment requirements, which can be 30% to 50% of the purchase price.
   • Strict approval process, which can include proof of local income and local tax records.

   For most foreign buyers, this option isn’t practical. It’s still worth knowing about, however, especially if you plan to establish residency and build a financial history in Ecuador.

   

   Ecuador’s stunning beaches, charming colonial towns, and affordable cost of living have made it a hotspot for expats and investors looking to own property abroad.

   ➜ Seller financing

   One of the most underrated financing options in Ecuador is seller financing. Here, the property owner acts as the lender, allowing you to pay for the home in installments rather than all at once.

   • You and the seller agree on a down payment, typically 20% to 50% upfront.
   • The remaining balance is paid over time, depending on the agreement.
   • Interest rates are negotiable, but usually lower than bank loans.
   • You get to move in right away, even while you make the payments.

   Not every seller offers financing, so you’ll want to ask about it early in the negotiation process. If you go this route, having a real estate attorney draft the agreement is a must to ensure both you and the seller are protected.

   LIVE THE LIFE provides financing for all our properties. Click here to learn more.

   Key points: With a little planning and the right strategy, securing your dream property in Ecuador is easier than you might think. Cash is the most common option. Mortgages from Ecuadorian banks are difficult to obtain for foreigners. Seller financing is an option. You can also leverage your assets from outside Ecuador to finance your purchase. Consider LIVE THE LIFE financing, where rates range from 12.5% to 14.5%.

4. Property taxes and additional fees

   One of the biggest financial advantages of buying property in Ecuador is the incredibly low property taxes. You only need to pay a fraction of the cost you usually spend in the U.S.A. However, there are still a few additional fees to consider when purchasing and maintaining a property.

   • Annual property taxes in Ecuador are some of the lowest in the world. The exact amount varies based on the property’s location, size, and the assessed value of the property. In general, this is 0.1% to 0.3% of the municipal assessed value, or roughly $500 per year.
   • Closing costs typically amount to 2% to 4% of the property’s value. These fees cover legal paperwork, notary services, and government registration. For a $100,000 property, expect to pay around $3,000, which is 3% of the purchase price.
   • Buyers agent fees are normally around the $5,000 mark. This already includes the $2,500 upfront fee when you hire a buyer’s agent, and the $2,500 fee you pay upon closing.

   Once you own a property, there are a few other recurring costs to keep in mind. These may include homeowner association (HOA) fees, utilities, trash collection fees, and property insurance. All that said, what you’ll pay will still be lower than in most other countries.

   Key points: If you’re looking for a place where homeownership won’t drain your wallet, Ecuador is hard to beat. Property taxes are extremely low; most homeowners pay less than $500 a year. Closing costs are minimal. Ongoing expenses are far below North American standards. Ecuador does not impose foreign buyer taxes. Paying taxes is simple; it’s done at the local municipal office.

   While buying property in Ecuador is a simple process, there are a few other key factors that can impact your experience as a homeowner. From understanding local infrastructure to navigating zoning laws, being aware of these details will help you make a smart and confident investment decision.

   • Consider natural risks

     Ecuador’s location along the Ring of Fire means that certain areas experience earthquakes, volcanic activity, and heavy rainfall. While these risks vary by region, they’re important to consider when choosing a property.

     In highland cities like Quito and Cuenca, occasional mild tremors are common but rarely cause damage. Coastal areas like Puerto López, on the other hand, may be exposed to strong winds, erosion, and heavy rains during certain seasons.

     Many newer homes are built with earthquake-resistant materials to meet modern safety standards, so it’s worth asking about a property’s structural integrity before buying. If you’re considering a coastal property, it’s also a good idea to check for erosion risks and flood history.

     

     In urban centers, electricity, water, and internet are widely available— modern utilities and high-speed mobile networks are part of life.

   • Verify infrastructure availability

     Ecuador’s infrastructure is well-developed in major cities like Quito, Guayaquil, and Cuenca, but services can be less reliable in rural or remote areas.

     In urban centers, electricity, water, and internet are widely available— modern utilities and high-speed mobile networks are part of life. However, if you’re looking at property in the countryside or on the coast, you may need to install independent water systems, rely on solar power, or arrange for satellite internet.

     Another important factor is road access. Ecuador has a solid highway system, though properties in rural and mountainous regions may only be accessible by dirt roads. If you plan to live in a remote area, consider how seasonal rains might affect travel and deliveries, as well as your transportation.

   • Check zoning and land use laws

     Zoning laws in Ecuador are not always strictly enforced, but it’s still essential to verify how a property is classified. This is especially important if you plan to rent it out, farm or develop the land further.

     Properties in urban areas are typically classified as residential, commercial, or mixed-use. If you plan to run a business or offer short-term rentals, make sure the zoning permits commercial activities.

     For rural properties or farmland, it’s crucial to check if the land is restricted or subject to conservation regulations. Some beachfront areas and protected regions have limits on construction and renovations, so always confirm what permits are required before purchasing.

   • Visit the country before buying

     No matter how much research you do, nothing beats experiencing Ecuador in person before purchasing property. Each region offers a unique lifestyle, and what looks great online may feel different in reality.

     Walk through neighborhoods, visit markets, and talk to locals and expats to get a true sense of daily life. Viewing properties firsthand helps you assess construction quality, accessibility, and surroundings.

     If possible, rent for a few months to explore different areas before committing. Taking the time to visit ensures you make an informed decision and choose a home that truly fits your needs. In Yunguilla Valley, for instance, you can set yourself up at LIVE THE LIFE Lodge and Health Center and spend a few weeks experiencing what the area has to offer.

Final thoughts: Be informed, be prepared

Buying property in Ecuador is more than just a smart investment—it’s an opportunity to create the lifestyle you’ve always wanted. Whether you’re looking for a vibrant city escape, a peaceful mountain retreat, or a beachfront paradise, Ecuador offers endless possibilities at incredible value.

By understanding the market, infrastructure, and legal details, you’ll be ready to make a confident decision and find the perfect place to call home. Your next adventure starts here—why wait?

START YOUR NEXT CHAPTER IN ECUADOR

LIVE THE LIFE offers a wide array of relocation assistance programs to ensure you have the best possible start in Ecuador. Whether you need help with your visa or constructing your dream home, we’re here for you.

Make the leap with LIVE THE LIFE. You can also get in touch via our Ecuador number (0979.947.640) or on WhatsApp.