I was born in Ecuador but grew up in the USA for most of my life and have both an Ecuadorian and USA Passport. From what I know the USA taxes its citizens no matter where in the world they live. So I am curious to know if I retire to Ecuador will I need to pay taxes to both the Ecuadorian government and the USA government being that I am a citizen to both countries? In short, I am not interested in renouncing either of my two passports but I am curious to know if double taxation is a reality for people like me? Or if there is some legal way to minimize the tax bill of either country? I would very much like to hear from Ecuadorian/American dual citizenship people like me to learn if retiring to Ecuador involve double taxation.
Double Taxation Inquiry
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One of the "benefits" of U.S. citizenship is that you become tax indebted to the U.S. no matter where you live.
This article may help you, it's geared to dual citizenship folks like yourself.
https://www(DOT)ustaxhelp(DOT)com/accountant-double-taxation-issues-american-dual-citizens/#:~:text=There%20are%20options%20to%20prevent,is%20available%20to%20dual%20citizens
Replace (DOT) with an actual .
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If you have earned income in a foreign country you can exclude over $100,000 of said income on your US form 1040. If you pay income taxes to a foreign country then you will be eligible for a tax credit or a deduction of the foreign taxes paid. Most folks these days do not itemize their deductions and would benefit from taking a credit as opposed to a deduction. The credit amount is based on how much you paid on how much foreign income and whatever your marginal tax rate is.
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