Reforms to the Free Trade Zone Regime in Ecuador

ECIJA Ecuador' s Investment team presents a new briefing note on the recent reforms to the free trade zone regime, an initiative that seeks to strengthen Ecuador's competitiveness as a destination for investment in technology, innovation and digital services.

The regulation incorporates the figure of technological service industrial free zones, expanding the catalogue of eligible activities to include sectors such as software development, artificial intelligence, cybersecurity, blockchain, Fintech, cloud computing, video games, scientific and technological research, among other services linked to the knowledge economy.

Among the most relevant changes, the regulation expressly recognises hybrid and remote work modalities for companies installed in technology free zones, establishing control, traceability and compliance criteria. It also relaxes certain physical infrastructure requirements, allowing in certain cases the implementation of digital security mechanisms adapted to the nature of these activities.

The reforms also reinforce the objective of generating specialised employment and promote a more favourable environment for attracting domestic and foreign investment. In this context, the new regulatory framework seeks to position the country as a regional hub for the export of technological services and the installation of high value-added companies.

The note prepared by ECIJA Ecuador analyses the main changes introduced by the regulation and its implications for investors, operators and companies interested in developing projects within this special regime.