nvestment Incentives in Nicaragua

LAW 306

Nicaragua’s tourism incentive law was passed in order to attract tourism and real estate developers to Nicaragua by providing tax-free incentives to investors. One of the major benefits to the law is that investors do not need to pay Nicaragua real estate taxes for up to 10 years. Some of the other benefits of Law 306 are as follows:

• 80-100% income tax exemption on rental property.
• Exemption on sales tax for products purchased for the tourist project.
• Exemption from the 1% transfer tax levied on all real estate transactions.

There are many projects in the San Juan del Sur area that have applied and qualified for Law 306 and enjoy the tax exemptions it provides. Since Law 306 was first implemented in June 1999, the Nicaraguan Tourism Institute has approved 443 tourism projects to receive benefits, for a total investment of $2.9 billion.

For a complete copy of Law 306 please click here

Retirement Incentives

The country's retiree incentive program is much like Costa Rica's was in the 1980s, attracting thousands of expatriates. To be eligible, you need only be over 45 and have a monthly income of at least $400.

There are other retirement incentives for foreigners living in Nicaragua as well. One can bring up to $10,000 in household items into Nicaragua tax-free.

Earnings outside of Nicaragua are also tax-free. Retirees can bring a car into Nicaragua tariff-free and sell it in 5 years tax-free.