Property transfers are subject to a 6% transfer tax; the buyer pays 5%, and the seller pays 1%. Property taxes are 1.5%, paid on the assessed value of the property. (Most assessments, in fact, lag behind the actual current values.)

Import Duties

Any amount of local or foreign currency can be imported to or exported from Nicaragua. Visitors are allowed approximately 400 cigarettes, three liters of alcohol, and one large bottle of perfume duty free. Samples with no commercial value are also considered duty free.
As a foreign retiree, you can bring up to $10,000 worth of household goods for your own home duty free.
Income Tax

As a foreign retiree, you pay no taxes on out-of-country earnings. Any income originating from within Nicaragua is taxed at a flat 15%.

Tax Incentives for Retirees in Nicaragua

Nicaragua's retirement laws provide significant tax incentives for foreigners. Follow this link for more information on residency and Nicaraguan tax incentives.

Nicaragua offers advantages few other places can match. The cost of living, for example, is a fraction of what you're accustomed to back home. You can employ a full-time maid here for about $100 per month. You can see a movie for $2…and get your hair cut for $1.25. Two people can have an excellent meal, including a good bottle of wine, for less than $20.

Tax Reductions for Foreign Investors

In March 1999, the National Assembly passed very attractive tax reductions for foreign investors that make Nicaragua one of the most progressive in this area in all of Central America.

Among the provisions the law allows for are:

* Tax exemptions for NGOs who pursue nonprofit work
* Exemptions on import taxes
* Exemptions on sales taxes for hospital investments
* Lower taxes on the import of U.S. cars whose larger engines were being taxed at a higher rate than those smaller ones in Japanese cars
* Elimination of taxes on capital goods, intermediary goods, and raw materials destined for the agricultural sector, small handicraft industry, fishing, and aquaculture.

Nicaragua's Law 306 is one of the most attractive, and extensive, tourism-incentive laws in Latin America.

This law is sweeping in scope and offers hard-to-beat benefits for investors who take advantage of the program. If your business qualifies, you pay no income taxes for up to 10 years, pay no real estate taxes for up to 10 years, and bring in (or buy locally) all the supplies you need, from furniture and boats to linens and cash registers…tax-free.

Nicaragua Land Of Paradise

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