Orlando, FL

(407) 530-6790

Nicaragua

(505) 7550-5146

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Purchasing property in Nicaragua, it is relatively easy for a foreigner

About Nicaragua

Population  6.14 million (2016 est.)

  • Area  130,370 sq km
  • Capital City  Managua
  • Time Zone  UTC/GMT -06:00
  • Location  Central America – bordered by the Caribbean to the east and Pacific to the west, between Honduras and Costa Rica
  • Climate  Tropical but slightly cooler in highlands
  • Currency  Nicaragua córdoba ($1 USD = 30.4758 Nicaraguan Córdobas Oct 2017)
  • Language  Spanish (official) 95.3%
  • System of Government  Republic
  • Country Code  +505
  • Emergency Number  118 (police, fire, ambulance)
  • Electricity  120V (Yup, you can bring your US electronics & appliances here!)
  • Religion  Roman Catholic 50.5%, Protestant 35.2%
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  • Welcome to Nicaragua
    Affable Nicaragua embraces travelers with offerings of volcanic landscapes, colonial architecture, sensational beaches and pristine forests that range from breathtaking to downright incredible.
  • Beaches
    Whether it’s dipping your toes into the crystalline Caribbean or paddling out to the crashing waves of the pounding Pacific, Nicaragua’s beaches always deliver the goods. The big barrels of Rivas are revered in surfing circles while the clear waters of the Corn Islands are superb for snorkeling. More sedentary beach bums can choose between accessible slices of sand lined with fine restaurants and happening bars or natural affairs backed by a wall of rainforest. Even the best beaches in the country are refreshingly free of development, so you can experience them just as nature intended.
  • Outdoor Adventures
    Looking for the ultimate rush? Nicaragua’s diverse geography, intense energy and anything-goes attitude is perfect for exhilarating outdoor adventures. Get ready to check a whole gamut of new experiences off your list including surfing down an active volcano, diving into underwater caves, canoeing through alligator-infested wetlands, swimming across sea channels between tiny white-sand islands and landing a 90-plus-kg tarpon beneath a Spanish fortress in the middle of the jungle. Nicaragua’s great outdoors are relatively untamed – at many key attractions, there are no signs and few crowds – making this so-called ‘land of lakes and volcanoes’ a fantastic place for an independent adventure.
  • Colonial Splendour
    Nicaragua’s colonial splendor comes in two distinct, but equally appealing, flavors. The elegant streetscapes of Granada, Nicaragua’s best-preserved colonial town, have been entrancing travelers for centuries with their architectural grace. The town boasts a meticulously restored cathedral, well-groomed plaza and perfectly maintained mansions that shelter lush internal courtyards. Far less polished, working-class León offers a different colonial experience where crumbling 300-year-old houses are interspersed with revolutionary murals, and architectural masterpieces house corner stores. It’s a vibrant city that, while proud of its heritage, is too busy to feel like a museum.
  • Getting Off the Beaten Track
    Few destinations have such beauty as Nicaragua, yet remain undeveloped. Before you know it, you’ve dropped off the tourist trail and into a world of majestic mountains, cooperative farms, wetlands thronged with wildlife and empty jungle-clad beaches. Rent a 4WD vehicle, if you’re up for it – it’s the best way to access some of the less-traveled corners of the country, provided you have a good map – and forge onward to discover remote indigenous communities, overgrown pre-Columbian ruins and untouched rainforests. No matter how far you go, you’ll always find friendly locals willing to share their culture with strangers.

Buy properties in Nicaragua

Five papers that are necessary to verify the legality of land:

1)    Escritura– The Escritura is the legal document that demonstrates who is the owner of the land.  It could be compared to a title deed.  In the Escritura, the first person is the seller and the second person is the buyer.  The inscription shows that the name is in the name of the new buyer.  At the end of the Escritura, there needs to be a “numero de inscription” (Inscription Number) that demonstrates

If the property is not inscribed…The owner must pay taxes a la Alcaldia (1% a “valor de la venta”/value of the sale), go with the plano original and go to the Catastro for a “Certificado Catastral” and then go to la Renta (Taxes) to pay 4% value of the sale tax (4% valor de la venta).  After all of this, go with everything to “al Registro” who are going to tell you an amount that is necessary to pay the bank (typically less than what you paid for taxes at the bank).

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2)    Plano – The Plano is the physical map that shows the boundaries of the land.

3)    Solvencia Municipal – This document shows that the property is free of taxes (that no back taxes are owed).

4)    Libertad de Graveman– This document shows that the property has no liens or outstanding loans on the property.

5)    Historia Registral– This document shows the public history of the land for the previous 30 years.  (Previous owners dating back 30 years). If necessary.

6)    Certificado de no objection : This is a document from the general attorney of Nicaragua stating that the property is clean and the government has not objection for this to be sold.

Other Legal Terms: 

Promesa de Venta – A type of contract by which one party agrees to sell and another agrees to buy a certain real estate. It establishes the deadline to realize the purchase, conditions and penalties in case of withdrawal by any interested parties. Usually, both the seller and the buyer leave a guarantee in order to demonstrate their interest in specific the promise.

Should always be performed before a Notary Public, and can register with the Real Estate Registry to avoid default by the seller.

Catastro– Place where the Plano is kept (measurements, physical description)

Registro– Where equal copy of the Escritura is kept

La Ley de la Costa– Law stating that coasts are public and regulated by each individual municipality; typically a 1 year contract for taxes (changes year to year).  Contract could be a 100 year rent or outright ownership, need to verify on the Escritura to see what the status is.

Impuesto de Bienes y Imbueles– Annual Tax (typically .2% of value of property).  Broken into two 6 month payments (June and December).

Escritura Suplitorio– Suplementary Escritura when an original Escritura isn’t available.  When one sells land with an Escritura Suplitorio (check to make sure everything is ok), the next owner of the land will have a normal Escritura.

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Terms in Escritura:

Dominio– (te da la escritura) the right in the Escritura to own the land

Possesion– (derecho de vivir) The right to live on the land.

*A good Escritura should include both the Dominio and Possesion.

Can Foreigners own property in Nicaragua?

Yes! Unlike other countries, Nicaraguan law makes no distinction between its citizens and foreigners with regard to owning property of any kind. It doesn’t matter what country you are from, if you have a valid passport, you can purchase land just like any “Nica.”.

Owning your property in a corporation?

As an foreigner buying property in Nicaragua, there are advantages to setting up either a Sociedad Anonima (S.A.), or a Compania Limitada (CiaTlda) which are equivalent to an S-Corp or LLC, respectively. The most commonly used entity is the S.Ao.

There are different kinds of Powers of Attorney:

Full Power of Attorney: This POA allows buying and selling any goods, accepting mortgages on properties, acquiring debts, giving any good as warranty, and signing checks. It is a Power of Attorney in which the agento.

Traveling to Nicaragua

Information about traveling to Nicaragua:

  • If you want to enter Nicaragua as a tourist, you must take into account that, depending on your nationality, immigration or other requirements are required. It is also important to know which vaccines are mandatory and recommended to enter the country.

    Necessary documentation
    Depending on the traveler’s nationality, the requirements to travel to Nicaragua. While some countries are required to obtain a visa, others only need a DNI.

  • ID and passport

    Nicaragua has a free mobility agreement with El Salvador, Guatemala, and Honduras, so the citizens of these territories will only need their National Identity Document (DNI) to travel to this country.

    On the other hand, this is the list of countries that do not need a visa, but a passport, for stays of up to 90 days. This document must have a minimum validity of six months at the time of the trip:

    A: Andorra, Antigua and Barbuda, Argentina, Australia, and Austria
    B: Bahamas, Bahrain, Barbados, Belgium, Belize, Brazil, Brunei-Darussalam and Bulgaria
    C: Czech Republic, Canada, Chile, Cyprus, Costa Rica, and Croatia
    D: Dinamarca
    E: Estonia
    F: Finland and France
    G: Germany, Greece
    H: Hong Kong, and Hungary
    I: Ireland, Iceland, Israel, Italy, Marshall Islands, and the
    J: Japan
    K: Kuwait
    L: Latvia, Liechtenstein, Lithuania, and Luxembourg
    M: Macedonia, Madagascar, Malaysia, Malta, Mexico, and Monaco
    N: Netherlands, Norway and New Zealand
    P: Panama, Paraguay, Poland, and Portugal
    Q: Qatar
    R: United Kingdom, and Romania
    S: Solomon Islands, South Korea, Slovakia, Slovenia, Spain, Saint Kitts, and Nevis, San Marino, Saint Vincent and Grenadines, Saint Lucia, São Tomé and Príncipe, Singapore, South Africa, Sweden, and Switzerland
    T: Taiwan, Trinidad and Tobago, Turkey and Tuvalu
    U: United States, Uruguay
    V: Vatican City, Vanuatu

    In addition to the passport, to enter the country, the traveler is requested a return ticket to the place of origin and a proof that he has the economic means to remain in Nicaragua.

  • Visa

    The rest of the countries that do not appear on the list need a visa to enter Nicaragua as tourists. Among these territories are Bolivia, Colombia, Ecuador, Peru and Venezuela. This visa can be requested at any consulate.

    However, there are other States that must have a consulted visa, that is, that must be approved by the Migration and Immigration Office. Among these countries are Cuba and Haiti.

    To be able to manage the visa, it is necessary to have a passport with a minimum validity of six months on the day of departure, as well as complete an application form.

  • Other requirements

    Children who wish to enter Nicaragua will need their own passport. In addition, if traveling alone or with only one parent, they will usually need an official authorization signed by both parents.

    On the other hand, it is allowed to travel to this country with pets. If you are going to do it by plane, check with the airline the conditions to transport the animal on the flight. In the following article, you will find information about all of them: List of the main airlines of the world by countries.

    In addition, dogs and cats must have a veterinary certificate that demonstrates the animal’s good health. In addition, it is essential to carry a vaccination certificate that shows that you are vaccinated against rabies.

Escrow Account in Nicaragua

  • ESCROW ACCOUNT IN NICARAGUA

    Opening an escrow account is an important step in real estate transactions in Nicaragua, as it provides security for both buyers and sellers. An escrow account ensures that funds are held securely by a neutral third party until all agreed-upon conditions are met. Here’s a step-by-step guide on opening an escrow account in Nicaragua and understanding the role it plays in protecting your investment.

  • WHAT IS AN ESCROW ACCOUNT?

    An escrow account is a secure account used to hold funds during a real estate transaction. In Nicaragua, an escrow account is typically managed by a licensed escrow company or a bank and serves as a trusted intermediary. Funds deposited into escrow are only released once both the buyer and seller have met their agreed-upon obligations, reducing the risk for both parties.

  • WHY USE AN ESCROW ACCOUNT IN NICARAGUA?

    Using an escrow account provides several benefits in real estate transactions:

    Security for Both Parties: Funds are held in a neutral account, ensuring neither party can access them without authorization.

    Proof of Funds: Escrow accounts demonstrate that the buyer has the financial means to complete the purchase.

    Protection Against Fraud: Escrow services are licensed and regulated, adding an extra layer of trust and security.

    Mitigated Risks: An escrow account reduces the risk of disputes by clearly defining terms and conditions for the release of funds.

  • CHOOSE A REPUTABLE ESCROW SERVICE PROVIDER

    Before opening an escrow account, you’ll need to choose a reputable escrow service provider. In Nicaragua, escrow services are typically offered by banks and specialized escrow companies, some of which are internationally recognized. A few things to look for when selecting an escrow provider include:
    Reputation and Reviews: Research the provider’s track record to ensure reliability and compliance.
    Licensing and Regulation: Verify that the company is licensed and regulated to provide escrow services.
    Experience with Foreign Buyers: Select a company familiar with working with international clients, as they can help with specific legal and tax considerations.

  • SET UP THE ESCROW AGREEMENT

    Once you’ve chosen an escrow provider, your next step is to set up an escrow agreement. This document defines the terms of the account, including:
    Conditions for Release of Funds: Clear instructions for when funds will be released to the seller, usually upon closing.
    Deposit Schedule: Defines any initial deposit or down payment and subsequent payments.
    Account Management Fees: Escrow services come with fees, which vary by provider. Make sure you understand these costs.
    Dispute Resolution: In case of disagreements, the escrow agreement outlines how disputes will be managed.
    The escrow agreement protects both parties and ensures everyone understands their responsibilities.

  • DEPOSIT THE FUNDS INTO THE ESCROW ACCOUNT

    With the escrow agreement in place, you’ll be instructed on how to deposit funds. Depending on the purchase agreement, this may be a down payment or the full purchase amount. Funds are typically transferred via wire transfer, so make sure to confirm the escrow account details with your provider and coordinate the deposit schedule. When transferring funds internationally, confirm the transaction fees, currency exchange rates, and any necessary paperwork for compliance with Nicaraguan banking regulations.

  • CONDUCT DUE DILIGENCE AND FULFILL CONTRACTUAL OBLIGATION

    The funds are now secure in the escrow account, and due diligence begins. This involves several steps:
    Title Search: The buyer’s attorney will verify the title, ensuring it’s free of liens or claims.
    Property Inspection: Arrange for inspections of the property, including structural, environmental, and utility assessments.
    Fulfill Conditions: Any other contract requirements, like appraisals or zoning approvals, must be satisfied before funds are released.
    This period ensures that both buyer and seller have met all contractual obligations and that there are no hidden issues.

  • RELEASE OF FUND FROM ESCROW

    After closing, the escrow provider will release the funds to the seller. Ensure that the following steps are taken:
    Confirm Final Payment: The escrow company transfers the agreed-upon amount to the seller, completing the transaction.
    Receive Closing Statement: The buyer receives a closing statement from the escrow provider, detailing all financial transactions related to the sale.
    The seller and buyer should verify that all conditions were met and that there are no remaining obligations.

  • PAYING ESCROW FEES

    Escrow services in Nicaragua come with fees, which are usually a percentage of the property’s sale price or a flat fee. The cost may vary depending on the escrow provider, the complexity of the transaction, and whether the buyer or seller assumes responsibility. Make sure to understand these costs before finalizing your choice of escrow provider.

  • PEACE OF MIND

    Opening an escrow account in Nicaragua provides security, transparency, and peace of mind throughout the real estate buying process. By choosing a reliable escrow provider and carefully following each step, you’ll ensure a smooth and secure property transaction. For international buyers, working with a knowledgeable real estate agent and a qualified attorney familiar with Nicaraguan property laws is crucial to avoid potential pitfalls. Whether you’re purchasing a vacation home, investment property, or a new residence, an escrow account is a valuable tool to protect your investment and ensure a successful transaction.