Taxes
Nicaraguan Real Estate Taxes
Few countries offer as light a tax burden as Nicaragua. Although the government has suspended its pensionado program, pending changes, taxes in general are relatively low.
Transfer Tax
Property transfers are subject to a 4% transfer tax on the purchase price. While most sellers ask the buyer to pay it, it should be known that it is a prepayment of income tax. The seller is the only one to benefit from its payment.
Sales Tax
General sales tax, IGV ( impuesto general al valor), applies to the transfer of most goods and services at the standard rate of 15%.
Property Tax
The annual property taxes are approximately 1% of the assessed value of the property.
Rental Income Tax
Earnings from rental properties are treated as normal income for tax purposes. As a non-resident foreigner, any income originating from within Nicaragua is taxed at a flat rate of 15%.
Capital Gains Tax
Nicaragua taxes its citizens, residents, and non-residents on all income originating in the country. Capital gains are treated as ordinary taxable income. You will be liable for tax on such earnings, up to a maximum of 35.5%.
Inheritance/Gift Tax
A charge of 4% is levied on the gift or inheritance of property. In fact, the government will not allow you to register a property until these taxes have been paid.