Fast Facts

• Currency: Nicaraguan Córdoba (NIO), though the US Dollar is widely used for real estate transactions.
• Property Taxes: 1% of cadastral value (first $40,000 often exempt).
• Closing Costs: Typically 3–5%, including lawyer, notary, and registration fees.
• Residency Link: Property purchases above $30,000 may qualify for Investor Residency.
• Land Tenure: Most property is titled; however, always verify title status with a local attorney before purchase.

Legal Framework

Nicaragua offers full property ownership rights to foreigners. Both residents and non-residents may buy, sell, lease, and inherit titled property, with equal rights to citizens. The only restrictions apply to land within 5 km of international borders or certain coastal/island zones, which require special government authorization. The key to a secure purchase is ensuring that the property is properly titled, registered in the Public Registry (Registro Público), and free from encumbrances.

Ownership Options

Foreign buyers can hold property directly in their personal name or through a Nicaraguan corporation (Sociedad Anónima). Using a corporation may simplify inheritance and future sales, but requires annual filings and modest maintenance fees. Properties held under ‘possession rights’ should be approached with caution; these lack full title protection and can be risky without proper legal verification.

Residents vs Non-Residents

Category	Residents	Non-Residents
Ownership	Can own property in personal or corporate name.	Full ownership rights; same as citizens.
Financing	Eligible for local bank loans with income proof.	Typically must pay cash or use foreign lenders.
Taxes	Pays local property and income tax on rentals.	Taxed only on Nicaragua-based income.
Residency Benefit	Easier access to mortgages and renewals.	Can later apply for Investor Residency (> $30K investment).

Step-by-Step Legal Process

1️⃣ Hire a bilingual, registered real estate lawyer to verify the title and ownership record.
2️⃣ Obtain a ‘Certificado Literal’ (Title Certificate) from the Public Registry to confirm ownership and liens.
3️⃣ Review the cadastral map, municipal tax receipts, and ensure property boundaries match the title.
4️⃣ Sign a preliminary Promise to Purchase (Contrato de Promesa) with a 10% deposit (escrow recommended).
5️⃣ Execute the final deed (‘Escritura Pública’) before a Nicaraguan notary.
6️⃣ Pay transfer taxes (1–2%) and registration fees (~1%), then record the title in the Public Registry.
7️⃣ Ensure utilities (water, electricity) are properly transferred into the new owner’s name.

Practical Insights & Tips

• Always confirm the property is titled — avoid ‘possession rights’ unless legally regularized.
• For coastal or island properties, confirm compliance with Maritime Zone and Border Laws.
• Use escrow accounts for all deposits and payments.
• Request a copy of the Municipal Tax Clearance Certificate (Solvencia Municipal) before closing.
• Consider title insurance through reputable firms for added security.
• Hire a licensed surveyor (Agrimensor) to verify property limits if any boundary disputes exist.

Why Invest in Nicaragua

Nicaragua has one of the lowest costs of living and property taxes in Central America. The real estate market remains undervalued compared to Costa Rica or Panama, yet tourism and expat migration are steadily growing. Coastal regions like San Juan del Sur, Popoyo, and Tola are now attracting investors seeking strong rental yields and capital appreciation as infrastructure and international flight access expand.

Legal Disclaimer

This guide is for informational purposes only and does not constitute legal advice. Buyers should consult a qualified Nicaraguan real estate attorney to confirm property status, ownership rights, and compliance with local laws before any purchase. TropiCasas is not liable for decisions made based on this content.