New regulations strengthen tax incentives for social housing

ECIJA Ecuador’s Tax and Investment Law practice group has published a new briefing note on Executive Decree No. 440, which sets out the Regulations for the application of the tax incentive scheme for social housing – a set of rules designed to promote investment in housing projects and help reduce the housing shortage in Ecuador.

The regulations set out the mechanism provided for in the legislation to enable certain taxpayers to access tax benefits through donations earmarked for the construction of social housing, establishing the requirements, procedures and conditions for the application of these incentives.

Our briefing note analyses the main aspects of the regulations, including the taxpayers eligible for the benefit, the types of donation provided for, the procedure for obtaining the income tax relief, how the annual tax allowance works, and the considerations that individuals and legal entities interested in accessing this scheme must bear in mind.

It also highlights the practical aspects that taxpayers must observe to comply with the requirements set out in the regulations, as well as the importance of properly planning transactions that will enable them to benefit from this tax incentive.

We invite you to read our information note to find out in detail about the scope of Executive Decree No. 440.