Relocating to Nicaragua as an expat is an exciting opportunity to embrace a slower pace of life, enjoy a lower cost of living, and immerse yourself in one of Central America's most stunning and culturally rich countries.
In this guide, we’ll walk you through everything you need to know about relocating to Nicaragua from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Nicaragua follows a territorial taxation model. You will pay tax on local sourced incomes only, irrespective of your resident status.
if you are present in Nicaragua on more than 180 days during the tax year.
if your personal, social and economic interests are located in Nicaragua during the tax year.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in the Nicaragua, you may find that the source country, as a starting point, continues to tax the income.
Double taxation agreements may remove the source country’s taxing right and thus, enable you to receive incomes tax free globally.
At present, Nicaragua does not have any double taxation agreements signed.
