Residency

Your Path to Nicaraguan Residency

If you've been contemplating residency in Nicaragua, this comprehensive guide offers an overview of the process as of 2023/2024. However, it's important to note that while we provide valuable insights, we are not a legal experts in Nicaragua. For tailored guidance specific to your unique circumstances, consulting with a legal professional is recommended.

The decision to pursue residency in Nicaragua is influenced by your goals and various factors. Since residency laws may evolve, this guide reflects the current situation in 2023.

Do I need to be a resident to invest in the country?

The great news is that you don't need Nicaraguan citizenship or residency to invest in this beautiful country. Foreigners can purchase property, establish businesses and own shares with the same rights as locals. But here's the golden opportunity: you can use a qualifying investment like Nica Farm to secure your Nicaraguan residency, and this comes with an array of benefits.

Do you want to become a tax resident in Nicaragua?

Nicaragua operates under a territorial tax system, ensuring that income earned abroad remains untaxed as long as it doesn't flow into a Nicaraguan corporate bank account. In fact, personal bank accounts receiving income earned overseas, including online revenue, are exempt from taxation by Dirrecion General de Ingresos (DGI), Nicaragua's equivalent of the IRS. This tax haven is exceptionally attractive for most foreign nationals, apart from U.S. citizens who need to meet specific requirements to take advantage of the foreign earned income exclusion. Many have explored the advantages of combining Panamanian corporations and Nicaraguan residency to substantially reduce their overall tax rates to a mere 5% or less. If you'd like to explore this further, consult with us to determine the best approach for your unique needs.

Are you looking for Nicaraguan residency as your "Plan B"?

Nicaragua has been a beacon of hope since 2020, drawing in remote workers, retirees, and professionals alike. With minimal Covid-related restrictions, lush tropical landscapes, and a cost-effective lifestyle, Nicaragua offers an appealing "Plan B." Furthermore, securing your 5-year investor residency with a minimum investment of $30,000 provides one of the most affordable and accessible routes to obtaining a second residency.

Are you planning on living continuously in Nicaragua for more than 90 consecutive days on a regular basis?

Nicaragua's tourist visa typically allows for 90 days of stay for citizens of most countries. If your plan involves spending several months or more in Nicaragua, residency might be your best option. However, if you're seeking flexibility, you can exit to Costa Rica for a quick border run and return, receiving a new 90-day stamp. There's no specific duration of time you must remain outside the country before returning, making it a convenient choice for many. Yet, keep in mind that these border runs are primarily effective at the Nicaragua-Costa Rica land border and may not be suitable for all parts of Nicaragua. As such, while you might not necessarily require residency to own property in Nicaragua, there are substantial advantages to gaining it.

Foreign Investor / Inversionista

If you're under 45, or if both spouses in a couple or family are under 45, the Foreign Investor residency is your primary pathway. This category demands a minimum investment of $30,000 via a qualified investment under Law 127. Your investment must generate economic activity, replace tangible assets in the country, and be substantiated through documentation like a deed of purchase (Escritura). Your investment can take the form of qualifying real estate with economic activity and/or actively managed local operations like Nica Farm.

There are benefits to Investor Class Residency in Nicaragua not available via the other classes. Investors have no minimum time in the country required. Only the six-month anniversary renewal dates of the residency (ID) card. Meaning two total days per year are required to be in the country. The only thing to note is they are specifically the six-month anniversary dates. For example someone who got their residency on January 1st would need to be in Nicaragua on July 1st and January 1st of each year.


Historically, it was relatively straightforward to purchase property, place it in a Sociedad Anonima (S.A.) corporation, and apply for residency. However, it's important to note that this approach did not align with the original spirit of the Investor Class Residency in Nicaragua. What the government now seeks is genuine economic activity. For example, purchasing a farm or a business operation that actively contributes to the local economy may be the key. However, most individuals seeking investor residency are not keen on owning and managing such operations. For those under 45 looking to secure residency through investment, I encourage you to contact us, and we can discuss specific options tailored to your situation. The Investor Class Residency is subject to approval by both the Immigration Ministry and the Ministry of Finance (MIFIC).

Significant Changes to the Investor Residency Program

The Ministry of Finance (MIFIC) has adopted a stricter approach to evaluating the financial basis for approval. MIFIC now prioritizes genuine investment with a positive economic impact on the country. Your investment, whether it's in land or a business, must have a physical presence; owning your home isn't sufficient unless there is a tangible economic connection. If your business doesn't own property, such as in the case of a corporation, you'll need a rental agreement. MIFIC is interested in seeing the impact of your investment on the economy and its job creation. To fulfill this requirement, you'll need two or more

We hope this clarification sheds light on the process of obtaining residency as a foreign investor in Nicaragua. Nica Farm guarantees that investing with us will result with a certification from MIFIC.

If you have any further questions or need assistance with the application process, please feel free to contact us.

Warm regards,

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Francisco Duarte, Nicaragua