|
"Law
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
Website:
www.intur.gog.ni
Email: [email protected]
The
following is a very basic summary of the opportunity offered:
With
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.
Some
of the types of tourism related services and activities that
are included are:
- Services
of Hotel Industry ( Hotels, Motels, Apart Hotels, Condo-hotels
, Time Shares )
- Investments
in Protected Areas of Tourism and Ecological interest
- Air
Transportation
- Water
Transportation ( Maritime, Fluvial, and Lake Transportation
)
- Internal
and Receptive Tourism and Ground Collective Tourism Transportation
- Foods,
Drinks, and Amusement Services
- Investment
in Filming of Motion Pictures and in events beneficial for
tourism
- Rental
of ground and water vehicles to tourists
- Investments
in Tourism Infrastructure and connected Tourism Equipment
- Development
of Nicaraguan crafts ; recovery of imperilled Traditional
Industries ; Production of Typical Music Events and Folklore
dances, and publications and materials of Tourism promotion.
- Small,
medium and micro corporations that operate in the Tourism
sector, in all areas of the sectorial activity
Incentives and Benefits : Short Summary
- Exoneration
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.
- Exoneration
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
started operations
- Exoneration
from the tax on Real Estate ( I.B.I.) for a period of ten
( 10 ) years.
This
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.
- Partial
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.
- Within
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.
Many
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. |