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.
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.
General sales tax, IGV (impuesto general al valor), applies to the transfer of most goods and services at the standard rate of 15%.
The annual property taxes are approximately 1% of the assessed value of the property.
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%.
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%.
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.