Ecuador asset declaration requirements and potential fines

In Ecuador, the asset declaration (declaración patrimonial) remains a mandatory informative tool for the Internal Revenue Service (SRI) to monitor the evolution of personal assets and detect unjustified increases. Single individuals must file the declaration if their assets exceed USD 244,160, while married couples or those in common-law unions must report if common assets exceed USD 488,320.

The declaration covers real estate, investments, business holdings, and debts, both within Ecuador and abroad. While the filing itself is not a wealth tax, it allows the SRI to cross-reference reported assets with declared income.

Concerns have been raised regarding a recent reform approved in October 2026, which includes a potential fine of up to USD 1,000,150 for non-compliance. Legal experts suggest this amount may be disproportionate and could stem from a drafting error. Proposed solutions to address this include legislative correction by the Assembly, a presidential veto by Daniel Noboa, or a lawsuit challenging the constitutionality of the sanction based on the principle of proportionality.