Foreign Ownership of Nicaragua Property
Foreign nationals may own property in Nicaragua either personally, using a Nicaragua registered corporation, or under a US.Trust held by a Nicaraguan Corporation.
Nicaragua Property Title
Nicaragua property ownership is Fee Simple / Freehold, however the title to many properties confiscated in the 1980’s remains unclear. Buyers are therefore advised to use the services of our real estate agents and exercise due diligence when purchasing a property in Nicaragua, as even a comprehensive title search can sometimes fail to uncover problems.
Nicaragua properties are generally constructed from concrete blockwork, brick, reinforced concrete and tile with most of the properties sold through our real estate agents provided with a new plot plan.
The cost of building a house in Nicaragua in 2006 is approximately $40 to US$70 per square foot, depending upon the quality of the materials used and complexity of the construction. Generally, roads and utility services can be carried to a property reasonably easily, depending on the local terrain.
Nicaragua Property Taxes
Taxes are very inexpensive. Annual property taxes approx. 1.5% of the assessed property value,
which is 50% or less of market value. Farmland comprising of up to 30 manzanas (51.6 acres) is exempt from real estate tax.
Nicaragua Property Insurance
Properties in Nicaragua may be covered by local insurance companies for fire, earthquake and floods but not for acts of war.
The Nicaraguan Government offers special benefits for tourism projects valued over 200,000 córdobas (approx. US$11,205) in the Departments of Carazo, Granada or Rivas, and special benefits for tourism projects valued over 300,000 cordobas (approx. US$16,807)on the Atlantic Coast. These benefits include exemption from taxation on construction materials and other items.
Foreign Investors in Nicaragua are allowed to register their investments and negotiate a foreign investment agreement with the Ministry of Economy and Development. However should they choose not to register, they are allowed to repatriate their foreign capital, less any losses incurred, within 3 years of making the investment. Additionally they are also allowed repatriation of the net profits gained from registered investment and compensation should there ever be any expropriation of funds for reasons of public or social interest.
In addition to the above, other tax benefits may be negotiated depending on the type of business proposed. The laws bought in under the Foreign Investment Law appear to have worked very well, with no known complaints to date.
Getting to Nicaragua
The main international airport for Nicaragua is Managua, which is centrally located on the Pacific coastline of Nicaragua. The airport is served by American Airlines with connections to Miami; Continental Airlines with connections to Houston; Copra Airlines with connections to Guatemala City, Panama City, San José (Costa Rica) and San Salvador; Delta Airlines with connections to Atlanta and Los Angeles; and Taca Airlines with connections to Los Angeles, Miami, San José (Costa Rica) and San Salvador. There are also some seasonal carriers such as Air Transat which flies from Montreal and also local carrier Aero Caribbean which flies to Cuba.
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Our local representative in Nicaragua can be contacted by emailing us through our Contact Us page.