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Nicaragua
Latin America
Lucky Nomads World Index
60.89 / 100
Global rank
#156
Corporate tax
30%
Personal tax
30%
Lucky Nomads Proprietary Indices
22 scoring dimensions scored independently using a deterministic methodology built on primary sources and structured analytical inference.
- SafetyShield Index5.8 / 10
- Affordability Index7.8 / 10
- Entry Ease Index5.7 / 10
- Tax Freedom Index8.4 / 10
- WiFi Index6.7 / 10
- Admin Ease Index3.8 / 10
- Healthcare Index7.2 / 10
- City Comfort Index6.5 / 10
- WeatherComfort Index6.2 / 10
- Banking Index3.5 / 10
- GeoStability Index5.1 / 10
- Justice & Order Index3.5 / 10
- Quality of Life Index7.3 / 10
- Open Society Index3.4 / 10
- Flight Index2.7 / 10
- Environmental Quality Index7.3 / 10
- English Index4.2 / 10
- Wealth Protection Index6.8 / 10
- AI Access Index5.2 / 10
- Economic Openness Index6.2 / 10
- Market Depth Index5.3 / 10
- ClimateShield Index6.7 / 10
Country snapshot
- Capital
- Managua
- Population (approx.)
- 7,000,000
- Area (km²)
- 130,370 km²
- Currency code (ISO 4217)
- NIO
- Currency name
- Nicaraguan córdoba
- Main airport IATA code
- MGA
- Airport name
- Augusto C. Sandino International Airport
General facts
- Minimum monthly cost
- From $996/month
- Main languages
- Spanish
- Jurisdiction type
- Country
- Region
- Latin America
- Web TLD
- .ni
- Phone calling code
- +505
Web TLD and phone codes are general references and can differ for territories or special numbering plans.
Tax system
- Marginal CIT (corporate income tax)
- 30%Very highTerritorial
- Marginal PIT (personal income tax)
- 30%HighTerritorial
Corporate taxation basis: Territorial. The country primarily taxes profits from domestic-source operations, with defined statutory exceptions. Foreign business profits are generally outside the base, subject to anti-abuse rules.
Pure territorial under Article 11 of Ley 822 (Ley de Concertación Tributaria). Only profits arising from Nicaraguan source are taxable for resident companies. Foreign-source profits not subject to IR. Punitive 30% withholding tax applies on outbound payments to tax haven jurisdictions (Ley 822 Art. 51), with the haven list determined unilaterally by the MHCP but not publicly published, which creates documentation risk for cross-border structures.
30% on Nicaraguan-source corporate income under Ley 822. Companies pay the higher of 30% on net income or a 1% to 3% definitive minimum tax on gross income. Newly incorporated entities exempt from minimum tax for first 3 fiscal years. Sectoral exemptions via Ley 917 free zones (0% for 15 years operadoras), Ley 1264 ZEE Belt and Road (0% renewable indefinitely), and Ley 1211 tourism (up to 100% for 10 years).
Personal income tax basis. Territorial. The country taxes income arising in or derived from its territory. Foreign-source income is generally exempt, subject to source-based rules that may vary by income type.
Strict territorial under Ley 822. Foreign-source income fully exempt for residents (foreign pensions, dividends, capital gains, rental income from abroad). Same source-based rule for non-residents. No DTTs in force, no foreign tax credit recognized.
Progressive 0 to 30% on Nicaraguan-source income only. annual basic exemption. Top 30% bracket applies above (around USD 13,600 at 2026 BCN reference rate). Capital gains generally taxed at 15%. Non-residents pay 15% flat withholding on most Nicaraguan-source income. No wealth tax, no general inheritance tax (occasional gains taxed 1 to 3%).
Tax percentages here are editorial reference figures for comparison, not individualized tax advice.
Special tax regimes
For companies
Régimen de Zonas Francas de Exportación (Free Zone Regime, Ley 917)
AvailableFree zone regime for export-oriented entities under Ley N°.
Zonas Económicas Especiales de la Franja y la Ruta (Special Economic Zones, Ley 1264)
AvailableSpecial Economic Zones regime created in October 2025 under Ley N°.
Ley de Incentivos para los Desarrollos Turísticos (Tourism Development Incentives, Ley 1211)
AvailableSectoral corporate tax regime for new tourism investments under Ley N°.
For individuals
Territorial Personal Income Tax Regime (default for Nicaraguan tax residents)
AvailableNicaragua applies strict territorial taxation for personal income tax under Ley N°.
You either qualify for Nicaragua's special tax regimes, or you don't. GeoCompass determines your eligibility, highlights the applicable conditions, and helps estimate your potential tax exposure.
Check my eligibilityVisa and mobility
Your access
Visa need and length of stay for Nicaragua. Saved on your device.
Overview
- Citizenship by investment
Not currently available
- Residence by investment
Available
- Remote work visa (digital nomad visa)
Not currently available
Programmes
Nicaragua lists several residency and mobility routes across residence by investment, work (employer sponsored), work (self sponsored), retirement routes, and family and dependant routes. Lucky Nomads tracks these programmes as editorial reference points. Thresholds, documents, and personal eligibility are evaluated in GeoCompass against your exact profile.
6 programmes listed · 6 are marked available in our editorial review
Residence by investment
1 programmeCapital, property, fund, or declared investment routes that can lead to longer-term residence.
- Available
Investor Permanent Residency (Residencia Permanente por Inversión)
Work (employer sponsored)
1 programmeEmployer-linked permits and skilled employment passes for hired professionals.
- Available
Residencia Temporal Trabajador en Relación de Dependencia (Employer-Sponsored Work Permit)
Work (self sponsored)
1 programmeSelf-sponsored work or freelance routes where you qualify without a local employer.
- Available
Residencia Temporal Trabajador Independiente / Empresario (Self-Sponsored Work / Entrepreneur)
Retirement routes
2 programmesRetirement-age or pension-linked residence options.
- Available
Residente Pensionado (Pensionado Temporary Residency)
- Available
Residente Rentista (Rentista Temporary Residency)
Family and dependant routes
1 programmeSpouse, dependant, and family reunion style permits.
- Available
Residencia Permanente por Vínculo Familiar con Nicaragüense
Not all residency routes are accessible. Some require minimum income, investment thresholds, local substance, or strict eligibility conditions. GeoCompass evaluates which options you can actually secure in Nicaragua.
Evaluate my residency optionsVisa and programme labels reflect editorial research, not individualized legal advice. Thresholds, documents, and personal eligibility are evaluated in GeoCompass. Always confirm rules with official government sources before you plan a move.
Dimensions breakdown
Strongest dimensions
- Tax Freedom Index8.4 / 10Very favorable tax environment
- Affordability Index7.8 / 10Competitive cost of living
- Environmental Quality Index7.3 / 10Strong environmental quality index
Weakest dimensions
- Flight Index2.7 / 10
- Open Society Index3.4 / 10
Published ranks by index
One row per leaderboard we publish (the composite index plus each proprietary dimension). A rank appears only when this country is currently in the published top 10 for that list. Open a row to see the full ranking. Hover an index name for the same short definition as elsewhere on the site.
This jurisdiction is not in the published top 10 on any of these lists right now.
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Founder, Lucky Nomads · Wealth manager
Researched from official sources, leading global indices and Lucky Nomads' own scoring.
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