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Ecuador slashed the sales tax on tourism services from 15% to 8% for the four-day Labor Day holiday. Hotels, restaurants, car rentals, and tours all qualify under Executive Decree 368. Here's what counts, what doesn't, and how to make sure you're getting the discount.
President Noboa signed Decreto 368 cutting the tourism IVA from 15% to 8% for the May Day long weekend (April 30–May 3). Hotels, restaurants, car rentals, and travel agencies all qualify. Here's how it works.
A Trans Esmeraldas interprovincial bus overturned on the E20 highway during Semana Santa travel, injuring more than 20 passengers. A separate crash in Colta killed 2. The incidents underscore the persistent dangers of Ecuador's highway system during peak holiday travel periods.
Friday April 3 is a mandatory national holiday in Ecuador. Banks are closed through Sunday, government offices shut down, but supermarkets and pharmacies stay open. President Noboa's VAT reduction to 8% on tourism services kicks in for the long weekend.
Ecuador returned to international capital markets in January 2026 for the first time since its 2020 debt restructuring, selling $4 billion in sovereign bonds across two tranches. The move included a $3 billion debt buy-back and sent country risk plummeting from over 2,000 points to 460.
Ecuador's Semana Santa holiday runs April 3-5 with Good Friday as a national holiday. Banks and government offices close, IVA drops to 8% for tourism, and major processions take place across Quito, Guayaquil, Cuenca, and Riobamba. Here's your practical guide.
Executive Decree 348 temporarily reduces Ecuador's IVA from 15% to 8% for tourism services from April 3-5 during Semana Santa. The cut covers accommodation, food and beverage, tourist transport, travel agencies, and ecotourism operations.
LATAM Ecuador launched the first-ever direct flight from Cuenca to the Galapagos Islands on March 31. The twice-weekly Airbus A319 service starts at $310 round-trip and eliminates the need for an overnight layover in Quito or Guayaquil.
Ecuador's Constitutional Court declared the Strategic Economic Cooperation Agreement (SECA) with South Korea constitutional, clearing the final legal hurdle. 98.8% of Ecuador's exportable products will enter Korea tariff-free, opening access to 51 million consumers.
Ecuador and the United States have signed a trade agreement that eliminates tariffs on 53% of Ecuador's non-oil exports. The deal covers bananas, shrimp, flowers, cacao, and other key agricultural products, strengthening economic ties between the two countries.
Ecuador's economy is projected to grow approximately 2% in 2026 with inflation holding near 1.5%. Country risk stands at 460 basis points. Here is what the numbers mean for expats living on dollar-denominated income in a dollarized economy.
Ecuador remains 50-70% cheaper than the United States in 2026, but inflation and the Colombia trade war are nudging some prices higher. Here are the latest monthly budgets, healthcare costs, and price benchmarks for expats in Cuenca, Quito, and the coast.
