Nicaragua Golden Visa & Investment Programmes

Nicaragua Golden Visa & Investment Programmes FAQ's

How strong is the Nicaraguan passport?

Although not one of the most sought-after passports, Nicaraguan passport holders enjoy visa-free and visa-on-arrival access to 142 countries and overseas territories worldwide, according to La Vida’s Passport Value Report. These include the UK, EU Schengen Zone, Singapore, the UAE and more. However, a visa is still required for the United States and China.

Can I get citizenship through investment in Nicaragua?

Through an investment of $30,000 USD in various sectors, including real estate, the support of new local businesses, or active participation in government-sanctioned forestry and agricultural ventures, one can secure immediate eligibility for permanent residency within the nation. This initiative not only serves as a pathway to lasting legal status but also fosters economic growth, promoting a symbiotic relationship between the investor and the host country. Investors can apply for Nicaraguan Citizenship after two consecutive years of living in Nicaragua, through the Permanent Residency by Investment programme.

Does Nicaragua offer a Golden Visa?

Officially, Nicaragua’s programme is known as a Permanent Residency by Investment programme. But these types of programmes across the world are also commonly referred to as Golden Visa programmes. So yes, in theory, Nicaragua does offer a Golden Visa / Investor visa programme.

What are the tax rates in Nicaragua for residents and non-residents?

In Nicaragua, a territorial tax system is in place, offering a distinct fiscal advantage to individuals and businesses. Under this framework, income generated abroad remains tax-exempt, provided it remains outside the country and does not enter a corporate bank account within its borders. This tax policy extends to income sourced from online activities, with the ‘Dirrecion General de Ingresos’ (DGI), Nicaragua’s equivalent to the IRS, refraining from imposing taxes on funds flowing into personal bank accounts for such overseas earnings.

This opens the door to an appealing strategy for many individuals and entities, combining the utilization of Panamanian corporations with Nicaraguan residency. This dual approach can yield significant tax benefits, potentially resulting in a remarkably low effective tax rate of 5% or even less. Such a synergistic approach optimizes tax efficiency, offering an attractive proposition for those seeking to enhance their financial strategies while contributing to the country’s economic growth.

 

What is Nicaragua like for investing?

Nicaragua offers a complex yet intriguing landscape for potential investors. On one hand, the country’s open economy has attracted foreign investors, particularly in sectors such as energy and mining. The establishment of free trade zones has further boosted the nation’s productive capacity, creating opportunities for investment. Moreover, unlike many of its neighbours, Nicaragua managed to relatively recover from the Covid 19 Pandemic as seen through its notable increase in FDI. Nevertheless, the country’s investment environment is not without challenges. It has grappled with political instability that has created much uncertainty for investors.

How strong is the economy in Nicaragua?

The Nicaraguan economy is one of the weakest in its region. Although the countries open economy benefits from foreign direct investment and remittances, its long-term growth is often constrained due to political and economic instability. There is a heavy reliance on agriculture that exposes it to the volatility of global commodity prices and the risks associated with weather-related disturbances that it experiences often. Nevertheless, it’s important to highlight that Nicaragua has made notable strides in its energy and mining sectors, which contribute positively to its economic landscape. Additionally, the establishment of free trade zones has played a pivotal role in augmenting the nation’s productive capabilities and stimulating economic growth

What is the real estate market like in Nicaragua?

Nicaragua’s real estate market is a blend of affordability and diversity. Compared to its Latin counterparts, it is notably lower in price. In recent years there has been a growing market in the tourism and retirement sector, with many Americans moving to the Central American nation which has played a significant role in fuelling interest in real estate investment. Additionally, Nicaragua’s retiree-friendly policies and low cost of living acted as incentives for retirees considering property purchases.

Can foreign citizens buy property in Nicaragua?

Citizenship or residency status is not a prerequisite for acquiring property in Nicaragua. Foreign individuals are afforded the equal opportunity to purchase real estate and engage in business operations within the nation, enjoying the same legal rights and privileges as local citizens. This welcoming policy promotes a favourable environment for international investment and business ventures, fostering inclusivity and economic growth.

Is permanent residency possible in Nicaragua through investment?

Yes, it is possible through three methods:

• Real Estate investment $30,000 USD
• New Business investment $30,000 USD
• Agricultural or forestry projects that are government approved $30,000 USD

Does Nicaragua encourage international investment from entrepreneurs?

The Nicaraguan government has introduced several pieces of foreign investment legislation to allow investors the same rights and responsibilities as domestic investors. Active efforts to encourage international investment and entrepreneurial activity include foreign investment promotions and free trade zones that provide tax incentives such as reductions or exemptions for businesses operating within these zones.