INVEST/RETIRE IN NICARAGUA

WHY LIVE, INVEST OR RETIRE IN NICARAGUA? ARTICLE FROM: http://www.liveinnicaragua.com/ Our answer, is "Why Not?" Located in the heart of Central America, Nicaragua is an exceptional country with its spectacular lakes, towering volcanoes, friendly people and legendary towns filled with cultural richness. The country beckons foreigners to come and see all it has to offer. Some foreigners have already gotten wind of the country’s potential. A recent article in USA Today states that over 5,000 Americans currently call Nicaragua their home. Today Nicaragua has become the "in" place for Americans retiring overseas. The hottest destinations seem to be cities like Granada, Leon City and Managua which were synonymous with strife and civil war. Consequently they were off the beaten path for the majority of tourists, not to mention retirees and much less investors. Now all of this has changed. A 1998 U.S. News and World Report article touted Nicaragua as a hot new retirement destination, with Central America’s lowest crime rate. The country is not just for retirees, but for those people wanting to retire from their present situations, including burnt-out baby boomers, those tired of dead-end jobs or the rat race. Nicaragua seems fits the bill for people of all ages looking for a an alternative way of life in an exotic land outside of the United States and Canada.

  INVESTMENT TAX INCENTIVES

Nicaragua has passed a number of laws and incentives to attract foreign investment and it has worked. The GDP growth in 2004 surpassed expectations at 5.2%. This was higher than Costa Rica, Brazil, or Mexico. These laws are many and varied, ranging from total tax exoneration for tourism related business (Law 306), free-trade zones for manufacturing companies, to retirement benefits for foreigners. These laws have been complemented by programs which have cut the bureaucracy involved to start corporations (now a 45 day process maximum). Outright property ownership for foreigners can be obtained with just a valid passport.

Foreign investors under the Foreign Investment Law 344, may (but are not required) to register investments and negotiate a foreign investment agreement with the Ministry of Economy and Development. This guarantees the investor repatriation of foreign capital, remittance abroad of the net profits and effective compensation in the case of expropriation.

RETIREMENT INCENTIVES

The Nicaraguan government is focusing on attracting foreign retirees to buy properties and then move to the country full-time for their retirement.  It is now very easy to become a permanent resident of Nicaragua, taking approximately one year.

INCOME QUALIFICATIONS

1. an investor with at least US$40,000 of property; or
2. a demonstrated monthly income of at least US$500/month in the country of origin

PENSIONADO
Another attractive residency package scheme is Nicaragua’s Pensionado program. Foreign retirees are allowed to bring US$10,000 of household goods and other personal items duty-free on first arrival, and bring a vehicle into the country tax-free once every five years. Another perk is an exemption from income taxes on income generated abroad.