Can I Work for an Ecuadorian Company on a Digital Nomad Visa? Understanding the Legal Restrictions

As an Ecuadorian immigration attorney, I see a recurring and critical question from remote workers: can the Digital Nomad Visa be used to work for a local Ecuadorian company?

The short answer is an unequivocal no. This article provides an authoritative breakdown of the legal framework, common pitfalls, and hyper-specific details you need to know to remain compliant.

The Legal Foundation: Spirit and Letter of the Digital Nomad Visa

Ecuador’s Digital Nomad Visa, officially the Visa de Residencia Temporal de Excepción por Nómada Digital, was created under Acuerdo Ministerial No. 008 and is governed by the principles of the Ley Orgánica de Movilidad Humana (LOMH). Its purpose is explicit: to attract foreign nationals who generate income from sources outside of Ecuador. The government’s intent is to boost the local economy through your consumption (spending, rent, tourism) without creating competition in the domestic labor market.

This visa is predicated on the legal definition of telework for a foreign entity. You are a resident consumer, not a local laborer.

Hyper-Specific Detail #1: The Income Requirement. To qualify, you must demonstrate a stable monthly income of at least three times the current Salario Básico Unificado (SBU). For 2024, the SBU is $460, meaning you must prove a minimum income of $1,380 per month from foreign sources. This income cannot be from an Ecuadorian employer.

The Core Restriction: No Employment with Ecuadorian Entities

Under the LOMH and its regulations, you are strictly prohibited from entering into a formal employment relationship (relación de dependencia) with an Ecuadorian company or individual while holding a Digital Nomad Visa.

This restriction is not a bureaucratic formality; it is a foundational pillar of the visa category.

Why this strict separation exists:

1. Labor Market Protection: The law protects job opportunities for Ecuadorian citizens and legal residents who hold appropriate work visas. Permitting Digital Nomads to take local jobs would undermine this core principle, as outlined in Article 50 of the LOMH.
2. Social Security and Tax Integrity: Local employment mandates employer contributions to the Ecuadorian Social Security Institute (IESS). The Digital Nomad visa structure is not designed to integrate with the IESS system, as your employment relationship is external.
3. Visa Category Specificity: Ecuador's immigration system is built on distinct categories for specific purposes. If your goal is to work for a local company, you must apply for a Work Visa (Visa de Residencia Temporal de Trabajo), which involves a different set of requirements for both you and your employer.

What Constitutes "Working for an Ecuadorian Company"?

To avoid unintentional violations, understand that "working for an Ecuadorian company" includes:

• Direct Employment: Signing an employment contract with a company registered in Ecuador and receiving a salary.
• Invoicing Local Businesses: Providing services as a freelancer or contractor and issuing invoices (facturas) to an Ecuadorian client through the SRI (Ecuador's tax agency). This establishes a local commercial activity.
• Operating a Local Business: Using the visa as a basis to establish and run a business that primarily serves the Ecuadorian market. This activity requires an Investor Visa (Visa de Inversionista).

An Expert's On-the-Ground Tip: The Cédula Process in Cuenca

Hyper-Specific Detail #2: A Common, Costly Mistake. After your Digital Nomad visa is approved and stamped into your passport, the Ministry of Foreign Affairs issues an orden de cedulación (ID card order). Many expats in Cuenca make the mistake of immediately going to the main Registro Civil office on Avenida Remigio Crespo Toral, expecting to get their cédula (national ID card) that day.

This will not work. You must first book a separate appointment, or turno, for cedulación through the official Registro Civil online portal. Showing up without a scheduled turno will result in being turned away, wasting an entire morning. Always secure the online appointment after you have the visa and the orden de cedulación in hand.

Clarifying Your Income Sources: The Legal Requirement

Your application and any future renewals hinge on proving your income originates abroad. The required documentation is non-negotiable:

• Employment Contract or Service Agreement: Clearly stating the name and address of the foreign company or clients.
• Bank Statements: Demonstrating consistent deposits from foreign sources into your bank account (which can be a foreign or Ecuadorian account).
• Letter from Employer: A dated letter on company letterhead confirming your remote role and salary.

Hyper-Specific Detail #3: The Costs Involved. Be prepared for the government fees. The visa application fee is $50, and upon approval, the visa issuance fee is $400. These fees are non-refundable and must be paid to proceed.

So, What Can You Do on a Digital Nomad Visa?

Your professional life must remain directed outward, but your personal life is rooted in Ecuador. You can:

• Continue your remote employment with your foreign company.
• Provide freelance services to international clients.
• Operate your foreign-registered online business.
• Invest your foreign-earned money in Ecuadorian real estate or financial instruments.
• Fully immerse yourself in the culture, travel, and community.

⚠️ Legal Alert: When to Consult an Immigration Attorney

If your situation involves any of the following, do not proceed without professional legal counsel:

• You receive a job offer from an Ecuadorian company.
• An Ecuadorian business wants to hire you as a consultant or freelancer.
• You plan to start a business with a physical presence or that serves the local market.
• You are unclear about your tax residency status and obligations to the SRI (Servicio de Rentas Internas).
• You receive any official inquiry from the immigration authorities (Subsecretaría de Migración).

Attempting to "bend the rules" can lead to severe consequences, including visa cancellation, fines, and deportation.

Conclusion: Adhere to the Law, Embrace Ecuador

The Digital Nomad Visa is an excellent pathway to living in Ecuador, but it is not a backdoor to the local job market. Its legal integrity depends on a clear separation between your place of residence and your source of income. By respecting this fundamental rule, you ensure a compliant and stress-free stay.

My role as an attorney is to provide clarity and ensure your journey is built on a solid legal foundation, allowing you to focus on what truly matters: building your new life in Cuenca.

Ready to ensure your Digital Nomad Visa application is compliant and successful? Have specific questions about your unique situation?

Schedule your complimentary 15-minute consultation today. Let's make your transition to Ecuador legally seamless.