More Americans Are Moving Abroad Than Ever. Here's Why Ecuador Keeps Winning.
US citizenship renunciations are surging. Ecuador's dollar economy, low cost of living, and accessible visas make it a top pick for Americans moving abroad.
Something shifted in the last few years. Americans are leaving - not on vacation, but permanently. And the data is getting harder to dismiss as anecdotal.
In 2024, nearly 5,000 people formally renounced their US citizenship, a 48% increase over 2023. The third quarter of 2024 alone saw 2,123 renunciations - the highest quarterly figure since late 2016. For context, annual renunciations averaged just 200-400 before 2009. Then came the record: 6,705 in 2020. The numbers have stayed elevated ever since.
And those are just the people who made it through the process. Immigration analysts estimate the global queue for renunciation appointments now exceeds 30,000, with US consulates overwhelmed by demand and some locations reporting wait times of months or years just to schedule an appointment. The State Department still charges $2,350 per renunciation - the highest fee in the world.
What's Driving It
The Greenback Expat Tax Services 2025 survey of 1,145 Americans paints a clear picture. From 2024 to 2025, the share of expats considering renunciation jumped 63% - from 30% to 49%. Nearly half of all US expats surveyed said they either plan to or are seriously thinking about giving up their citizenship.
The reasons break down into two categories: money and representation.
The tax burden. The United States is one of only two countries in the world (the other being Eritrea) that taxes citizens on worldwide income regardless of where they live. The Foreign Account Tax Compliance Act (FATCA), fully implemented in 2014, added layers of reporting requirements that affect everything from banking to investing abroad. Many expats report difficulty opening foreign bank accounts or accessing financial services because institutions don't want to deal with US compliance requirements.
The political disconnect. Three in five expats surveyed said they don't feel fairly represented by the US government. Following the 2024 election, 63% of expats said the results confirmed their decision to remain abroad. This isn't a left-right issue - it's a structural one. Americans living overseas have limited voting power, pay into a system they rarely use, and face a tax code designed for domestic residents.
Generationally, the trend skews toward people in their prime working years. Millennial and Gen X expats were the most likely to consider renunciation, at 60% and 54% respectively. Parents with children under 18 were even more decisive: 71% had considered renunciation, compared to 31% of those without kids.
Where Are They Going?
The popular destinations share a few traits: lower cost of living, territorial tax systems, accessible visa programs, and quality of life that doesn't require a six-figure income.
The short list keeps coming up in survey after survey: Ecuador, Panama, Portugal, Mexico, Costa Rica. Each has its strengths. But Ecuador has a combination of factors that's hard to match.
Why Ecuador Keeps Coming Out Ahead
The dollar. Ecuador adopted the US dollar as its official currency in 2000. If you're receiving Social Security, a pension, remote work income, or investment returns in dollars, you spend them directly. No exchange rate risk. No conversion fees. No watching your purchasing power swing 20% because of currency fluctuations. This alone eliminates one of the biggest financial risks of living abroad.
Foreign income is not taxed. Ecuador does not tax personal income earned from sources outside the country. If your income comes from US Social Security, a pension, remote work for a US employer, or investments held abroad, Ecuador won't tax it. Property taxes are also among the lowest in the world - it's unusual to see an annual tax bill above $200, even on a substantial home. Residents over 65 with property valued under approximately $190,000 are exempt from property tax entirely.
Cost of living. A retired couple can live comfortably in Ecuador on $1,500-$2,500 per month, all-in. That includes housing, food, healthcare, transportation, and entertainment. A doctor's visit runs $25-$40. A furnished two-bedroom apartment in a good neighborhood rents for $500-$800. Weekly groceries for two: $30-$50.
Accessible visas. Ecuador offers multiple pathways: retirement visas (requiring proof of pension or Social Security income of $1,325/month or more), investment visas, professional visas, and the newer Digital Nomad Visa for remote workers. The process is straightforward compared to many Latin American countries, and Ecuador's official "Living in Ecuador" portal provides government-backed relocation support in English and Spanish.
Healthcare. Ecuador has modern hospitals with physicians trained in the US and Europe, many of them bilingual. Comprehensive private health insurance runs $100-$200/month. Residents can also enroll in Ecuador's public healthcare system (IESS). For the quality of care available, the cost is a fraction of North American prices.
Why Cuenca Specifically
Cuenca is Ecuador's third-largest city, a UNESCO World Heritage Site, and has been ranked as one of the best retirement destinations in the world by International Living, Forbes, and other publications. The expat community here is currently estimated at 5,000-8,000 residents.
The city sits at 8,400 feet in the Andes, which means year-round temperatures of 50-70F. No heating bill, no AC. It's a walkable city with colonial architecture, four rivers, markets, museums, theaters, and a thriving arts scene.
Cuenca isn't an expat bubble. It's a real Ecuadorian city of 600,000+ people where expats are a welcome but small part of the mix. That matters - it means you're living in a community, not a compound.
What This Means Practically
The trend isn't slowing down. IRS data shows expatriations rose 50% to 1,600 in Q3 2025 alone. The renunciation queue is growing. And every year, a new wave of Americans discovers that their retirement savings, remote income, or investment portfolio goes two to three times further in Ecuador than it does at home.
This isn't about running away from something. For most of the people we work with, it's about running toward a better quality of life - better healthcare access, lower stress, more financial security, and a pace of living that makes sense.
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Considering a move to Ecuador? Schedule a consultation or call 651-621-3652.