Entre Ríos Beach, which is the commercial name, is approved as an urban development under the legal name of “Urbanización Los Manglares”. The developer has all permits necessary to construct the urban development and sell lots.
Ecuador has no restrictions on foreign owned real estate. All lots in the ERB are sold with clear title and title insurance that guaranties permanent ownership. The property registry is the governmental entity in Ecuador that guaranties title insurance. For general information about living, doing business, visas; please have a look at the website of International Living at www.internationalliving.com/Countries/Ecuador
Taxes and Expenses:
When buying a property there are the notarial expenses and county taxes to consider. The county government maintains an official lot value of all properties that are usually lower than the commercial value (sales value). Since all taxes and expenses are based on the sales value in the deed, this is normally set equal to the official property value. The expenses involved in signing the clear deed are the responsibility of the buyer.
To obtain a clear deed the buyer must pay the following expenses and taxes:
- The sales tax (acabalas), which is 1% of the sales value in the deed.
- The gain tax (plusvalia), which is basically 10% of the difference between previous and current sales value in the deed. The county government has a formula to calculate this.
- The notarial expenses in elaborating the deed document. This can be done in any notary in Ecuador, and the expense will vary some between notaries.
- The title insurance for the deed in the Property Registry of San Vicente County. There is an official table for this tax, based on the official value of the lot.
- The property tax (predial) for owning the lot. This is 0.1% of the sales value in the deed to be paid on a yearly basis.
An example: The lot B1 has an area of 225.00m2, which gives an official value of US$ 3,098.25. To obtain the deed, the buyer must pay the following taxes and expenses:
- The sales tax: $ 30.98 (+ $5.00 for administration fees)
- The gain tax: US$ 64.02 (+ $5.00 for administration fees)
- The notarial expenses, which is for the notary in San Vicente some $ 150.00
- The inscription tax for the deed in the Property Registry: $ 100.00
- The property tax: $ 3.10 (+ $5.00 for administration fees yearly)
In total the buyer must pay some $ 355.00 to obtain and the clear title with title insurance.
Signing the buyer´s contract as a title also depends of the notary. In San Vicente signing the buyer´s contract as a private contract is much more economical at $ 30.00
Constructing and coexistence in the Entre Ríos Beach:
The fundamental objective for the ERB is to create an area of harmonic coexistence, based on the respect for the natural environment and ensure its main objective; residential and lodging. For this reason there exists, in addition to county regulations, the Internal Regulations ERB that regulates security, coexistence and constructions. You may download the entire “Reglamento Interno ERB (Spanish)” at the bottom of the page. The most important regulations on construction are the following:
Zoning and activities allowed and prohibited inside the area of the urban development
- To better the functioning of the urban areas, and to rationalize the internal activities, and at the same time secure an environment of comfort and coexistence, the urban sectors are zoned based on the activities and usage. The urban development is zoned into areas exclusively residential and areas with activities mixed between residential and lodging.
- The areas exclusively residential are located at the north, between the park and the river banks of Muchacho River. The area is defined by the following lots and sectors; Lot 1 to 8 of sector C, and the sectors D, E, F and G.
- The areas with mixed activities between residential and lodging, are located at the south, between the park and the river banks of Canoa River, at the side of the road Canoa – Jama, and in front of the beach. The area is defined by the following lots and sectors; Sector A, B, C9-C15, H and I.
- In the areas with activities mixed between residential and lodging, in addition to residential homes, it is allowed commercial activities like hotels, hostels, and similar lodging establishments.
- It is strictly forbidden the constructions and functioning temporal or permanent of all activities that produce environmental, acoustic or physical contamination, like discothèques, portable discothèques, cabarets, garage, tire, wooden or other repair workshops, sawmills, gas stations, sale from vehicles with speakers, use of lots for guarding construction material in commercial activities that needs heavy machinery to be moved, use of lots for farm animals, churches or similar.
Technical regulations
- The construction must not have a ground floor which size exceeds a coefficient of 35% of the total lot area (50% for the lots in the sector B), and a total construction which size exceeds a coefficient of 105% of the total lot area (150% for the lots in the sector B).
- The construction must respect the front, side and backside withdrawals, established in the urban development plans approved, and established by the Municipio de San Vicente in the document “linea de fabrica”.
- Maximum height of construction is three floors and/or 9.00 meters.
- The residential constructions should have at least one parking space inside the lot, and the commercial constructions should have sufficient parking space inside the lot so that the clients can park, in addition to the regulations of parking spaces given by the Municipio de San Vicente.
- No lot can de sub divided or fractioned. In the case of individualize properties inside a lot; this must be done under the regulation of Horizontal Property.
- It is the obligation of each owner to construct a permanent septic tank. The plans of the septic tank can be obtained at the administration. It is strictly forbidden to leak the sewer into the rivers.
We emphasis that we are selling lots with full infrastructure, we don´t construct the buildings. Still, we can recommend other contractors to build the house or tourist complex of your dreams.
Download the Reglamento Interno ERB (Spanish) (WORD)