Few countries offer as light a tax burden as Nicaragua.

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

If you derive rental income from your property in Nicaragua, your earnings will be treated as normal income for tax purposes. For resident individuals, income tax (IR) is calculated on a progressive tax rate, up to a maximum of 25%. For non-residents, any income originating from within Nicaragua is taxed at a flat 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.