Buying, selling and renting
How to sell a property in Ecuador
Which documents to prepare before listing, how to set the price, which taxes the sale triggers (plusvalía, alcabala, income tax) and how it closes at the notary and the Property Registry.
Selling a property well is, above all, having the paperwork in order before the buyer turns up. A serious buyer — and their bank or BIESS — will ask to see the recorded deed, a recent certificate of encumbrances and the property tax paid up. This guide lists what to prepare, how the taxes you will pay are worked out and what happens on signing day.
1. Prepare the documents
- Your deed recorded in the Property Registry (it is your title of ownership).
- The certificate of encumbrances, solvency or ownership history from the canton's Property Registry, to show there are no mortgages, prohibitions or attachments — or which there are and how they will be lifted.
- This year's property-tax (predial) receipt and, if the municipality issues one, the appraisal certificate or cadastral record.
- In a condominium (horizontal property), a certificate from the administration that the service charges (alícuotas) are paid up.
- If the property has a current mortgage, the lender's details for its cancellation or substitution.
2. Set a realistic price
The parties set the price (Civil Code, art. 1747), but the market decides whether anyone pays it. Compare similar properties in the same area — size, age, condition, parking — and bear in mind that, if the buyer borrows, the lender will commission its own appraisal and lend on that value. Keep the cadastral appraisal in mind too: it is the minimum base of the alcabala tax (COOTAD, art. 532).
3. The taxes a sale triggers
| Tax | What the rule says | Source |
|---|---|---|
| Tax on profits and plusvalía (municipal) | 10 % of the profits and plusvalía from transferring urban property, a rate an ordinance may change; the taxpayer is the owner who sells at a gain; special improvement levies, among others, are deducted. | COOTAD, arts. 556–558 |
| Alcabala (municipal) | 1 % of the taxable base; taxpayers: the contracting parties who benefit from the contract. | COOTAD, arts. 531, 532 and 535 |
| Income tax | Income from the occasional sale of real estate is exempt. It is not occasional but habitual when the sale is part of the business of someone who subdivides, develops, builds or buys and sells property. | LRTI, art. 9 no. 14; Regulation, art. 18 |
4. Negotiate and sign
Accept an offer in writing
Set the price, payment method, deadlines and who bears each cost. If the buyer needs a loan, agree what happens if it is not approved.
Promise of sale (optional)
If the deed is not signed straight away, a promise meeting art. 1570 of the Civil Code — public deed, term or condition, the contract specified — protects both parties. If a deposit (arras) is paid, the Civil Code governs what happens if either side backs out (arts. 1742 to 1744).
Minuta and tax assessment
The lawyer drafts the minuta; the municipality assesses the alcabala and the plusvalía. Without the receipts the notary cannot grant the deed (COOTAD, arts. 537 and 560).
Deed and recording
The public deed is signed before the notary and recorded in the canton's Property Registry (Civil Code, arts. 1740 and 702). Recording passes ownership to the buyer.
Handover
Hand over the property in the agreed condition, with the keys, the latest utility receipts and, in a condominium, notice to the administration.
5. If the property is let
The Tenancy Law (Ley de Inquilinato, art. 31) says a transfer of ownership ends the lease, but the new owner must give the tenant three months to leave; if the owner does not serve notice (desahucio) within one month of recording the transfer, the lease continues. Leases made by public deed and recorded in the Property Registry are respected. And a tenant who has lived in the property without interruption for 15 years or more has the first option to buy on equal terms (art. 37). Tell the buyer from the start.
Frequently asked questions
Do I pay income tax when I sell my house?
The Internal Tax Regime Law exempts income from the occasional sale of real estate. It stops being occasional when the seller's business is subdividing, developing, building or buying and selling property. Check your case with the SRI or a tax adviser.
Who pays the plusvalía tax?
The COOTAD (art. 558) names the owner who sells at a gain as the taxpayer, and makes the buyer liable up to the tax left unpaid. The parties may agree who bears it; put it in writing.
Can I sell a home that still has a mortgage?
Yes, as long as the mortgage is cancelled or substituted when the sale closes. The buyer or their lender will see the mortgage on the certificate of encumbrances.
What happens to my tenant if I sell?
The sale ends the lease, but the new owner must give three months to leave and serve notice within one month of the recording; otherwise the lease continues (Tenancy Law, art. 31).
Sources
- Código Civil (Codificación 2005-010) — FAOLEX, FAO (copia del texto oficial)
- Código Orgánico de Organización Territorial, Autonomía y Descentralización (COOTAD) — Consejo de Participación Ciudadana y Control Social (copia publicada)
- COOTAD, texto actualizado al 10-03-2026 — LegalCloud (normativa ecuatoriana)
- Extracto arts. 9 al 9.5 de la Ley Orgánica de Régimen Tributario Interno y su reglamento — Servicio de Rentas Internas (SRI)
- Ley de Inquilinato (última reforma R.O. 913-6S, 30-XII-2016) — Gobierno del Ecuador (gob.ec)
- Préstamo hipotecario: Vivienda terminada — Banco del Instituto Ecuatoriano de Seguridad Social (BIESS)