Why Nicaragua
Nicaragua in the News
"Nicaragua Tourism Industry Investment Incentive Law"
Photo Album
Nicaragua Information

Nicaragua Tourism Industry Investment Incentive Law

"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.
Home | Why Nicaragua | Nicaragua in the News | Nicaragua Tourism Industry Investment Incentive Law | Photo Album | Nicaragua Information | Contacts
  Contact Iain Apostolos :[email protected]
Hosted by www.Geocities.ws