To send money from Ecuador to the USA, you use an Ecuadorian bank wire, a money transfer operator like Western Union, or a digital platform — providing your ID, the recipient’s U.S. bank details (including the 9-digit ABA routing number and, for wires, a SWIFT/BIC code), and enough funds to cover Ecuador’s 5% outbound transfer tax on top of any provider fees. Because both countries use the U.S. dollar, there is no currency conversion or exchange-rate spread to worry about. The main costs are the tax and the fees; the main friction is paperwork.
What You Need Before You Start
Ecuadorian banks and money transfer operators will ask for a specific set of details before they process the transaction. Have these ready:
- Your identification. Ecuadorian residents present the Cédula de Identidad; foreign nationals use a valid passport. If the money is going out on behalf of a business, bring the Registro Único de Contribuyentes (RUC).
- The recipient’s full legal name, exactly as it appears on the U.S. bank account.
- The U.S. bank’s name and address, the account number, and the 9-digit ABA routing number. For international wire transfers you also need the receiving bank’s SWIFT or BIC code.1American Bankers Association. ABA Routing Number
Above certain regulatory thresholds, your bank will also require a Formulario de Origen de Fondos (Source of Funds Form). This anti-money-laundering document asks where the money came from — salary savings, an inheritance, a property sale — and why you are sending it, such as family support or a trade payment. You can pick it up at a branch or download it from your bank’s website.
Fill it out accurately. Incomplete or inconsistent answers can trigger account freezes or an investigation by Ecuador’s financial intelligence unit, the Unidad de Análisis Financiero y Económico (UAFE), and the delay is worse than the extra ten minutes of paperwork.
The 5% ISD Tax on Outbound Transfers
Ecuador applies the Impuesto a la Salida de Divisas (ISD) to money leaving the country. The general rate is 5%, calculated on the full amount being sent and deducted at the moment the bank or operator processes the transaction. Reduced rates of 2.5% and 0% exist but apply to certain commercial imports, not to personal remittances.
Not every transfer is fully taxed. Bank transfers equal to or less than three times the Salario Básico Unificado (SBU) are generally exempt. With the 2026 SBU set at $482, the exemption covers transfers up to $1,446 per biweekly period.2Ministerio del Trabajo. Salario Básico Unificado de 2026 en USD 482 Additional exemptions may apply for catastrophic illness treatment or certain educational expenses, but you must submit supporting documentation to the Servicio de Rentas Internas (SRI) to qualify. As of January 2025, the ISD is no longer available as a tax credit; it can only be treated as a deductible expense on your Ecuadorian tax return.
Splitting a large transfer into smaller amounts to stay under thresholds, or moving cash through undeclared channels, is not a workaround. The SRI can impose substantial fines, and systematic evasion can bring criminal charges under Ecuador’s Código Orgánico Integral Penal. Keep records of every transfer and every tax payment for at least five years in case of an SRI audit.
Choosing a Transfer Method
You have three practical options, and the right one depends on how much you are sending, how fast it needs to arrive, and whether the recipient has a U.S. bank account.
Bank Wire Transfers
Traditional bank-to-bank wires move through the SWIFT network. You need an Ecuadorian bank account; the recipient needs a U.S. account. Major Ecuadorian banks like Banco Pichincha and Banco Guayaquil offer this service in branches and through online banking.
Wires are reliable but the fees stack. Your sending bank charges an outgoing transfer fee. Each intermediary (correspondent) bank in the SWIFT chain may deduct its own fee, typically $15 to $30. The receiving U.S. bank often charges an incoming wire fee that varies by institution, commonly $0 to $25. All of that is on top of the ISD.
Money Transfer Operators
Operators such as Western Union work well when the sender or recipient does not want to use a bank account. You hand cash to a local agent in Ecuador, and the recipient collects it at a U.S. location, has it deposited into a U.S. bank account, or receives it on a prepaid debit card. These operators run their own settlement networks, which can move funds faster than SWIFT wires in some corridors. Fees vary by provider and transfer size, and the operator typically shows the total cost, including the ISD, before you confirm.
Digital Platforms
Online platforms and mobile apps link an Ecuadorian bank account or card to a U.S. destination through their own software. You handle the whole transaction from a phone or browser. Fees are usually lower than traditional bank wires, but limits and processing times vary, so compare a few providers before committing to one.
Sending and Tracking the Transfer
You can initiate a transfer at a branch or through your bank’s online portal. Online, look for the international transfer section, often labeled “Transferencias al Exterior,” enter the recipient’s details and the amount, and confirm. Most banks require multi-factor authentication, usually a code sent to your phone, before the transaction goes through. At a branch, a teller processes the request and prints a summary for your records.
Once the transfer is registered, the bank or operator issues a confirmation with a transaction reference number. Money transfer operators call this a Money Transfer Control Number (MTCN). Share it with the recipient so they can track the funds. The confirmation also serves as proof that the transfer was dispatched and that any applicable taxes were withheld.
Banks generally send email or text notifications when the money leaves your account and again when it arrives. If an intermediary bank flags the transfer for extra verification, respond quickly. File the receipt and tax documentation somewhere safe once the recipient confirms deposit.
What the U.S. Recipient May Need to Report
For the person receiving the money in the United States, the transfer itself is generally not taxable income. Gifts and bequests from foreign individuals are excluded from gross income under U.S. tax law.3Internal Revenue Service. Gifts from Foreign Person Reporting, though, is a separate question from tax owed.
Form 3520 for Large Foreign Gifts
If you receive more than $100,000 in total gifts or bequests from a nonresident alien individual or a foreign estate in a single tax year, you must report those gifts on Part IV of IRS Form 3520.4Internal Revenue Service. Instructions for Form 3520 You must also separately identify each individual gift exceeding $5,000.3Internal Revenue Service. Gifts from Foreign Person The form is due by April 15 of the following year, subject to any filing extension. Late or incomplete filings can trigger penalties.
FBAR and Form 8938 for Foreign Accounts
If you keep an Ecuadorian account alongside your U.S. one, separate rules can apply. A U.S. person with a financial interest in or signature authority over foreign accounts whose combined value exceeds $10,000 at any point during the year must file a Report of Foreign Bank and Financial Accounts (FBAR) using FinCEN Form 114, submitted through FinCEN’s BSA E-Filing system rather than with your tax return.5Internal Revenue Service. Report of Foreign Bank and Financial Accounts (FBAR)
IRS Form 8938 (Statement of Specified Foreign Financial Assets) kicks in at higher thresholds. For single filers living in the United States, that is $50,000 on the last day of the tax year or $75,000 at any point during the year. For married couples filing jointly, the thresholds are $100,000 and $150,000.6Internal Revenue Service. Do I Need to File Form 8938, Statement of Specified Foreign Financial Assets Missing either the FBAR or Form 8938 deadline can be expensive. Non-willful FBAR violations alone can cost over $16,000 per account per year.