Detailed comparison
| Side-by-side comparison of taxation, cost of living and scores between the two countries. |  France | |
|---|---|---|
| Taxation | ||
| Dividend tax | 37%Scale0-37% | 31.4%, Edge to this country |
| Capital gains tax | 37%Scale0-37% | 31.4%, Edge to this country |
| Corporate tax | 25%, Tie | 25%, Tie |
| Wealth tax | None | Yes, IFI (real estate only) |
| Direct inheritance | 17%, Edge to this countryScale0-17% | 45%Scale5-45% |
| Cost and real estate | ||
| Monthly FIRE budget | €1,600, Edge to this country | €2,700 |
| Cost-of-living score | 81.5, Edge to this country | 38.5 |
| Reference city | Quito | Paris |
| City-center 2-bed rent | €500, Edge to this country | €2,450 |
| Safety and FIRE score | ||
| Insecurity | 2.5 | 2.0, Edge to this country |
| FIRE Ultimate V3 score | 76.5, Edge to this country | 64.6 |
Verdict
- Ecuador wins on cost of living (index around 40), the dollarized economy (inflation of about 1.4%), a rentista visa from $1,446 a month, permanent residency in 21 months, and the absence of a wealth tax.
- France keeps the tax edge for an investor: its 31.4% flat rate is capped, whereas Ecuador taxes both dividends and capital gains on a worldwide scale up to 37% and levies a 5% ISD on every currency transfer.
- Verdict: Ecuador appeals to the dollar-pension retiree seeking a low cost and a simple visa, but France remains more favorable for wealth living on dividends and capital gains.
Frequently asked questions about this duel
Is Ecuador taxed less than France on dividends?
Not for an investor. France applies a flat 31.4% rate, capped. Ecuador folds foreign dividends into worldwide income taxed on a progressive scale from 0% to 37%, and adds a 5% ISD on currency exits. For significant capital income, France is often more advantageous.
Is the cost of living really lower than in France?
Yes, markedly. Ecuador's cost-of-living index runs around 40, well below France's level. A two-bedroom apartment rents for about €500 a month and a meal for two around €20. This is Ecuador's central argument, especially for a retiree on fixed income.
And inheritance, Ecuador or France?
Ecuador is lighter: direct-line inheritance comes out at up to 17% effective, against up to 45% in France after the €100,000 allowance per child. Ecuador even fully exempts minor or disabled children. On this specific point, the edge goes to Ecuador.