Nicaragua Tax & Retirement Incentives

 

• Property tax is levied at a flat rate of 1%.

• Nicaraguan Law Defines Gross Income as The Total Income and Profits Earned in The Country During the Taxable Year.

• For rental income, 70% of the gross rent is taxable (30% of the gross rent can be deducted)

 

Incentives/Advantages to Foreign Investors Include: 

Under Decree No. 628, the “Law of Resident Pensioners and Retirees,” some of the requirements for Nicaragua’s retiree incentive program include:

 

• Be over 45 years old

• Have a monthly income of at least $400 or the equivalent in another currency (add additional $100 for each dependent family member living with you in Nicaragua)

 

Benefits (mostly in form of tax incentives):

 

Based upon retiree benefits offered to in the 1980s in Costa Rica. 

As a foreign retiree, you:

 

• Pay no taxes on any out-of-country earnings

• Can bring into Nicaragua up to $10,000 of household goods for your own home, duty-free

• Can import one automobile for personal or general use duty- and tariff-free, and sell it after 5 years, tax-free

• Can import an additional vehicle every 5 years under the same duty exemptions