Incentives Law for the Tourism Industry of the Republic of Nicaragua

Tax incentives for the tourism sector are governed by Law 306 "Law of Incentives for the Tourism Industry of the Republic of Nicaragua" and its regulations (Decree No. 89–99).

Individuals or legal entities that invest in tourism services and activities duly authorized by INTUR, after fulfilling the requirements established in the law for each of them, are eligible.

Hotel industry services; (2) Investments in protected areas of tourist and ecological interest without affecting the environment / public places of tourist and cultural interest / historical preservation complexes; (3) Air transportation; (4) Water transportation; (5) Internal and receptive tourism / collective land tourism transport; (6) Food, beverage and entertainment services; (7) Filming of films / artistic, sporting and other beneficial events for tourism; (8) Leasing of vehicles to tourists [land, air and water]; (9) Related tourist activities and equipment; (10) Development of Nicaraguan handicrafts / rescue of traditional industries in danger / productions of typical music and folk dance events / printed matter and tourist promotion materials.

The tax incentives that Law 306 grants to projects related to infrastructure, such as "Hotel industry services" (1), "Food, beverage and entertainment services" (6) and "Related tourist activities and equipment" (9) , are the following:

Execution stage: (∆) Tax exemption for the local and / or imported purchase of materials and accessories for the construction of the works, the acquisition of equipment and vehicles (those established by law for the activity); (∆) exemption from Value Added Tax (VAT) applicable to engineering and construction services.

Operation stage (10 years): exemption for the renewal of equipment and vehicles, of the Real Estate Tax (IBI) if they are owners and of the Income Tax [80% or 90% if they are located in a Special Zone of Planning and Tourism Development (ZEPDT)]. What is related to IR does not apply to “Food, beverage and entertainment services”.

In tourist activities number (2), (3), (4), (5), (7), (8) and (10), the incentives granted by Law No. 306 are specific for each of them

Income Promotion Law for Retired Residents and Income Residents

Nicaragua, within its regulatory framework, related to tourism, applies the Law for the Promotion of Income of Retired Residents and Renting Residents, Law No. 694, approved on June 18, 2009 and published in La Gaceta No.151 of August 12 of the same year.

The opportunity is given to the segment of pensioners that is made up of citizens who have fully or partially met their working age and that of rentier those who enjoy their own patrimonial income that, by logical consequence, they need for themselves and their family, of the greatest tranquility and respect, and that Nicaragua is the propitious place for this because of the climate of peace and security that we have achieved and that the State of Nicaragua fosters through the law, its institutions and its citizens, as well as its customs. and cultural events.

Retired residents apply with a minimum pension amount of US $ 1,000 

People over 45 years of age, who have been declared retired or retired by governments, official bodies or private companies of their respective countries.

In this category are foreigners or Nicaraguans, as long as the pension or retirement comes from other governments, foreign official bodies or foreign companies and may be extended to relatives who depend on the applicant, with US $ 150 for each dependent.

Rentista residents apply with a minimum rent amount of US $ 1,250 

People over 45 years of age, who have stable permanent income generated abroad for at least five years or more.

In this category are foreigners or Nicaraguans, who have resided abroad permanently for more than 10 years and who verify the enjoyment of the income generated abroad in a stable and permanent way, and may extend it to relatives who depend on the applicant, with US $ 150 for each dependent.

The benefits granted by this law, to the pensioner or rentier that applies to it, are the following:

  • Enjoy duty free and exemption from all import taxes in force for the introduction of household goods, whose value may not exceed twenty thousand dollars of the United States of America (US $ 20,000.00) or its equivalent in cordobas.
  • Exempt from payment of import taxes and Value Added Tax (VAT) for the introduction or local purchase of a new or used motor vehicle for their personal use or that of their dependents, whose maximum CIF price is (US $ 13,000.00) . every four years.
  • Exonerate for a single time from the payment of Value Added Tax (VAT) for the purchase of materials for the construction of a home of your property in which you will live, those whose value does not exceed fifty thousand dollars of the United States of America (US $ 50,000.00).
  • Exempt from the payment of Value Added Tax (VAT) for the rental or rental of vehicles for tourist use of the beneficiary and his closest family nucleus within the national territory.
  • Exceptionally and in the opinion of INTUR, an exemption from taxes for the admission of instruments or materials for professional or scientific practice may be granted when the Pensioner or Rentista is required to provide their professional services to the Nicaraguan State, to technical or higher education centers or that their work is of social interest to the country. The value of the instruments or materials may not exceed two hundred thousand dollars of the United States of America (US $ 200,000.00).

The requirements to apply are: 

Birth certificate, two passport size photos, health certificate, passport photocopy, marriage certificate, criminal record certificate, description of household items and vehicle specifications. All documents translated into Spanish, with a photocopy reason and duly apostilled / authenticated.