No. 306 Decree No. 89-99" The government of Nicaragua
offers incentives under the Tourism Investment Act. These incentives
relate to taxes, both present and future. For a detailed brochure
available in English or Spanish, please contact: Nicaraguan
Institute of Tourism P.O. Box 5088 Managua, Nicaragua Phone:
505-222-4334 , Fax: 505-222-6610
Email: [email protected]
following is a very basic summary of the opportunity offered:
a required investment that varies from area to area within the
country, and certain other qualifications, and for investments
that relate to tourism, an investor may qualify for exoneration
on a variety of taxes.
of the types of tourism related services and activities that
are included are:
of Hotel Industry ( Hotels, Motels, Apart Hotels, Condo-hotels
, Time Shares )
in Protected Areas of Tourism and Ecological interest
Transportation ( Maritime, Fluvial, and Lake Transportation
and Receptive Tourism and Ground Collective Tourism Transportation
Drinks, and Amusement Services
in Filming of Motion Pictures and in events beneficial for
of ground and water vehicles to tourists
in Tourism Infrastructure and connected Tourism Equipment
of Nicaraguan crafts ; recovery of imperilled Traditional
Industries ; Production of Typical Music Events and Folklore
dances, and publications and materials of Tourism promotion.
medium and micro corporations that operate in the Tourism
sector, in all areas of the sectorial activity
Incentives and Benefits : Short Summary
from Fees and Import Taxes and of the General Value Tax (
I.G.V.) in local purchases of construction Materials and fixed
accessories of the building.
from import fees and taxes for motor vehicles, both for passengers
and cargo which are declared necessary to establish and operate
a tourism activity by INTUR, and in the purchase of equipment
contributing to the saving of water and energy, and those
necessary for the project, for a period of ten ( 10 ) years
as of the date on which INTUR declares that said company has
from the tax on Real Estate ( I.B.I.) for a period of ten
( 10 ) years.
exoneration will only cover real estate properties of the
company, used exclusively in activities of tourism.
Exoneration from the General Tax on Value ( I.G.V.) applicable
on services of design / engineering and construction.
foreigners have already taken advantage of the investment incentive
program available. Applications and approvals take approximately
90 days. There are a number of qualified people who will assist
in the application process. Most are lawyers / notaries. The fees
to do this run from U.S. $ 1,500 to $ 3,500 depending on the scope
of the project. Nicaragua is anxious to spur Foreign Investment
related to Tourism. The government recognizes that a major contributor
to the economic growth of the country will be in the Tourist sector.
exoneration from eighty ( 80 ) % to 100% of Income Tax, depending
on the classification and location of the project , for a
period of ten ( 10 ) years after the project has begun operation.
The actual start-up date can be negotiated and deferred up
to 3 years.
the period of tax exoneration, a company may decide to re-new
or re-invest, and the exoneration period may be extended for
an additional 10 years, as long as the new investments are
valued at a minimum of 35% of the value of the initial investment.