WHY INVEST IN NICARAGUA?
Why not? It is a land of dazzling natural beauty, tropical paradises, wonderful beaches and surrounded by hospitable people, rich cultural traditions, and abundant investment opportunities. Nicaragua has become one of the safest countries in the western hemisphere, an advantage recognized internationally by tourists and investors who have relocated to the country.
THREE THINGS TO KNOW
BEFORE INVESTING IN NICARAGUA
RESTRICTIONS ARE MINIMAL
One thing that can surprise people is that in general foreigners are not going to find themselves restricted in many ways in what they can buy or how they can do it. The only real restriction to mention is one that concerns border security. Foreigners cannot buy within 5 KM of any international border, and if they would like to buy anywhere between 5 KM – 15 KM they must get an approved permit. Realistically in Nicaragua there are so many other places to buy, be that in the forest or by the ocean, that are not within 15 KM of any border. Basically, this small restriction becomes inconsequential once you really look at what the rest of the country has to offer and at the price at which you can get oceanfront property in the country.
In the last decade Nicaragua privatized most of its monopolies which has made for a largely reduced amount of government intervention for foreign investors. The law allows for 100% ownership in every economic sector, and actually once you look further it’s clear that the policies that are put in place by the government are actually there to encourage foreign investment.
THE GOVERNMENT WANTS FOREIGN INVESTMENT
One thing that can surprise people is that in general foreigners are not going to find themselves restricted in many ways in what they can buy or how they can do it. The only real restriction to mention is one that concerns border security. Foreigners cannot buy within 5 KM of any international border, and if they would like to buy anywhere between 5 KM – 15 KM they must get an approved permit. Realistically in Nicaragua there are so many other places to buy, be that in the forest or by the ocean, that are not within 15 KM of any border. Basically, this small restriction becomes inconsequential once you really look at what the rest of the country has to offer and at the price at which you can get oceanfront property in the country.
In the last decade Nicaragua privatized most of its monopolies which has made for a largely reduced amount of government intervention for foreign investors. The law allows for 100% ownership in every economic sector, and actually once you look further it’s clear that the policies that are put in place by the government are actually there to encourage foreign investment.
FEES YOU CAN EXPECT WHEN THE PURCHASE IS FINALIZED
As with any purchase of property there are fees associated when everything is finalized. Listed we have a few of the generalized ones:
Attorney fees
These will be 1% - 1.5% of the purchase price
Title Registration fees
1% of the cadastral value with its maximum amount being 30,000 Cordoba (about $870 USD)
Transfer Tax/ Property Gains Tax
If the property is under $50,000 this will equal 1% of the total
If the property is between $50,000 and $100,000 this will equal 2% of the total
If the property is between $100,000 and $200,000 this will equal 3% of the total
If the property is over $200,000 this will equal 4% of the total
Start looking!
Realistically there are differences in all countries when it comes to the purchase of property and especially that in which is being done by a foreign entity; Nicaragua is no different. If there is any time to invest in this blossoming country, it is now. If you are a potential expat, there are many communities for you to feel right at home in, and if you’re looking for a vacation property, our waterfront homes for a fraction of what they would cost in the United States and Canada.
If you have any questions, please feel free to contact us so that we can get you started on the path to success! And if you are a realtor wanting to dip their hands into the world of international real estate, feel free to contact us as well for more information!