Ecuador approves new law in attempt to curb land speculation

elcomercio.com reported that the Ecuador National Assembly has approved a law which is focused on preventing land speculation. It is referred to in Spanish as the plusvalía or capital gains law. The vote was 79 in favor, 27 against and one abstention. The law will put in place a 75% tax on extraordinary profits on property sales. Property taxes will also be in affect on property transactions that are conducted through trusts or companies engaged in property development or construction. Builders engaged in social (affordable) housing would be exempt.

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Ecuador’s internal revenue service has a calculator for figuring out what your capital gains tax will likely be under this new law versus what you would have paid under the old law. Read Article