The Insider's Guide to Buying Property in Nicaragua
Welcome to the 7th Heaven Properties guide to buying property in Nicaragua, your essential companion for navigating the enchanting appeal of this Central American “Land of Lakes and Volcanoes.”
With excellent surfing conditions, long golden sand beaches and comparatively affordable real estate, Nicaragua has attracted rapidly increasing attention from international property buyers in recent years.
Discover the charm of this unique destination, find out why property buyers are investing in real estate in Nicaragua and delve into the real estate market with a showcase of property listings and blog posts highlighting the country’s unique features and advantages.
From the ins and outs of buying property in Nicaragua to an essential overview of relevant taxes, this is your ultimate go-to resource.
Overview - The Nicaragua Real Estate Market
The largest country in Central America, Nicaragua has long Caribbean Sea and Pacific Ocean coastlines with beaches that stretch for miles. With a tropical climate and landscape which varies from fertile valleys to tropical rainforest, the country is extremely biologically diverse, hence its nickname “the land of lakes and volcanoes”. Until recently Nicaragua was one of Central America’s best kept secrets, but now, the secret is out. The country was named by CNN as one of the “World’s fastest-growing tourist destinations for 2017.” Its blossoming tourism sector attracted approximately 1.5 million tourists in 2017 and plans for a trans-continental canal to rival the canal in Panama, would, if realized, provide a major boost to economic growth.
While the slated opening of a new breed of high quality resorts on Nicaragua’s Pacific Coast, such as the proposed Six Senses, is likely to bolster Nicaragua’s luxury credentials, the real estate market is still considered emerging. It is very much a buyer’s market and, for the time being, property prices in Nicaragua remain lower than in nearby Costa Rica, Panama or Belize. Real estate for sale in Nicaragua, which ranges from newly built condos overlooking manicured golf courses to finished turnkey beachfront homes, is particularly popular with North American buyers, including retirees looking for more bang from their buck and investors with an eye on the increasingly lucrative rental market.
“With excellent surfing conditions, long golden sand beaches and comparatively affordable real estate, Nicaragua has attracted increasing attention from international property buyers in recent years”
Buying Process, Fees & Taxes
- Can foreigners buy property in Nicaragua?
Yes, foreigners can buy property in Nicaragua and the Government of Nicaragua welcomes investment from overseas buyers. There are practically no restrictions on foreign buyers acquiring real estate in the country and the buying process is the same for citizens and foreigners alike. However, foreign buyers are not permitted to purchase land within 5km of the international borders and require a waiver permit to purchase land within 5 to 15km from the international borders. Land that lies within 50 meters of the high tide mark is considered the property of Nicaragua and its citizens and is unavailable for purchase.
- Buying process
Buying property in Nicaragua is a relatively simple process, which typically involves the following steps:
- Begin your property search.
- Find your perfect property and make an offer.
- Once you have signed a contract for sale, your attorney should conduct due diligence including a title search and property survey.
- Your attorney will then draw up an Escritura (Title Deed) and witness the signing by both you and the seller.
- Once payment has been transferred your attorney should register the property in your name at the Cadastral Office.
- Pay all required taxes and fees.
- Fees & taxes
Transfer Tax
There is a Transfer Tax paid by the seller (except in San Juan del Sur where it is paid by the buyer) that varies by the property value:
- 1% (<$50,000)
- 2% (~$100,000)
- 3% (~$200,000)
- 4% ($200,000+)
Registration Tax
There is also a Registration Tax and IMI Tax – 1% each.
Property Tax
There is an annual property tax (IBI) of 1% of the assessed value of the property.
Latest Real Estate Listings in Nicaragua
7 
Residency & Citizenship
- How long can a foreign citizen stay in Nicaragua?
Citizens of the USA, Canada, UK, and many countries in the Caribbean and Latin America are permitted to visit Nicaragua without a visa for up to 90 days within a 180-day period.
As Nicaragua is party to the Central America Border Control Agreement (CA-4) tourists can travel within the CA-4 countries (Honduras, Nicaragua, El Salvador and Guatemala) for up to 90 days without completing entry and exit formalities at border immigration checkpoints.
- How do you become a resident of Nicaragua?
Nicaragua offers foreign nationals who would like to live in Nicaragua 2 optional routes to obtaining residency status:
Retiree Residency
According to the Law of Resident Pensioners and Retirees (Decree 628), retirees aged over 45 with an income equivalent to at least $600 per month from Social Security or a pension can apply to become resident in Nicaragua for a 5 year period (renewable). Residency offers tax benefits including no tax on out-of-country income, exemption from duty on importing up to US $20,000 worth of household goods and a vehicle valued at less than $25,000.
Investor Residency
According to the Foreign Promotions Investment Law, individuals investing a minimum of US $30,000 in a business or real estate in Nicaragua can apply for residency in the country. Applications must be made in person in Nicaragua and applicants must remain in the country for at least 30 days following the application to allow for follow up visits from Immigration officials.
- How do you become a citizen of Nicaragua?
Individuals who have lawfully resided in Nicaragua for 5 years can apply for citizenship by naturalization.
Mortgages in Nicaragua
Looking for financing to fund the purchase of property in Nicaragua?
Contrary to popular misconception, it is possible for foreign nationals looking to invest in Nicaragua real estate to apply for financing.
Some local banks offer mortgages for qualifying non-residents buying, building or improving a second home in Nicaragua.
How to Get There
There are direct flights to Nicaragua’s Sandino International Airport near Managua from Europe and the Americas.
From the USA you can fly to Nicaragua’s Sandino International Airport in Managua with American Airlines from Miami, with Delta from Atlanta or with Continental from Houston.
From Europe, fly with Iberia from Madrid or connect in the USA.
There are also regular flights to Nicaragua from various Central and South American cities.
- Miami to Nicaragua 2h 35m
- Houston to Nicaragua 3h 20m
- Atlanta to Nicaragua 3h 45m
More from the Blog
Best Country in Central America to Buy Real Estate
Which is the best country in Central America to buy real estate? Discover the top places for vacation homes and investment.
Income-Generating Homes for Sale in the Caribbean
7 of the best income-generating homes for sale in the Caribbean that deliver relaxation and a return.
Local weather
27°
0.11%