Best Visas For Living In Nicaragua

Nicaragua is undoubtedly one of the best places in the world to get residency. Whether you want to have this country as a Plan-B or live here full-time, you will be welcomed with open arms. 

Imagine a place where locals are eager to hear your story, weeks’ worth of groceries can be acquired for a few bucks, and tax-free income is a reality (you’ll see how in the following lines).

That’s right. In Nicaragua, you can afford to live at an affordable cost and have an attractive tax situation. This country is so worth it that my friend and fellow Canadian Patrick Hiebert, founder of EcoVillages, has built a self-sufficient community in Nicaragua for freedom-minded people like you. 

We’re talking about a beautiful ocean view, vegetation all around you, and neighbours who respect economic, personal, and medical freedoms; this could be the place for you. Feel free to reach out to EcoVillages via expat@EcoVillages.life, and they’ll be more than happy to help you. 

In today’s article, you’ll discover all the options for residency in this lovely country. Regardless of the type of permit you’re looking for, you will find one that suits you. 

WHAT MAKES NICARAGUA RESIDENCY APPEALING?

Nicaragua offers many lifestyle benefits that make it an amazing destination for different types of expats, such as digital nomads, remote workers, retirees and investors. From the affordable cost of living to the country’s natural beauty, Nicaragua is certainly a place with something for everyone. Here are some of the reasons why expats are considering a move to this Central American country:

VALUE FOR MONEY

If you earn in a foreign currency (USD, GBP, EUR, etc.), your money can go a long way and pay for the same lifestyle you had back home at a fraction of the cost. To illustrate this, $1 USD equates to around 35 Cordobas (Nicaragua’s currency), further driving prices down for expats earning in stronger currencies. 

According to Numbeo, the cost of living in Nicaragua (including rent) is over 60% lower than in the States. For instance, a hearty meal (with rice, chicken, beans, salad and plantain) in a traditional Nicaraguan restaurant may cost you a meagre $4 USD. Other important expenses like healthcare are cost-effective; doctor visits will hardly cost you more than $20 USD, and medication is also cheap.

LIFESTYLE APPEAL

The various cities and villages also add to the country’s appeal. You may want to live in more of a colonial town like Granada or a beachside city like San Juan del Sur. Options abound here, and you’re in for a good time if you want to bask in natural beauty (volcanoes, beaches, lakes and jungles) and engage in the rich culture. 

LOW TAXES & BUSINESS-FRIENDLINESS

The government is business- and foreign-friendly; expats are welcome to come here and bring money into the country. Indeed, Nicaragua counts with a territorial tax system, so foreign-sourced income is tax-free. This perk alone makes the country worth considering if you want to protect what’s yours. Additionally, there is no wealth tax, while other taxes like VAT and capital gains stand at 15%.

FOOD AND WATER INDEPENDENCE

Last but not least, we cannot neglect Nicaragua’s food and water independence. This means the country is self-sufficient and can satisfy its residents’ dietary needs. Another added benefit is that if the country does not rely heavily on food imports, food costs tend to go down, benefitting those who live in the country immensely. Here, you can find produce like sugar, beans, and rice, as well as different types of fruits and vegetables. 

HOW TO GET RESIDENCY IN NICARAGUA?

Nicaragua is an underrated country where savvy expats and investors can thrive and find many opportunities. After looking into the reasons why living in this country is so appealing, the question now is: How can you get residency in Nicaragua, and what residency permit is best for you? 

There are many pathways to secure your residency in this country, but the answer depends entirely on your situation and personal circumstances. Let’s check the available permits: 

RENTIST & PENSIONIST PERMITS (RENTISTA & PENSIONADO)

These permits are ideal if you already have a passive income and want to live a cost-effective lifestyle in a beautiful setting. The migratory categories of Resident Rentier or Pensionist can be extended to:

• Parents;

• Spouse;

• Partner in a stable de facto union;

• Minor sons and daughters;

• Persons who are related up to the fourth degree of consanguinity, as long as they depend on the applicant.

The rentista and pensionado categories are accessible, as the requirements are easy to meet:

• For rentists, show certified foreign-sourced passive income that generates a minimum monthly amount of $1,250 USD;

• For pensioners, show a certified foreign-sourced pension that generates a minimum monthly amount of $1,000 USD;

• An extra $150 USD applies for every dependant;

• Birth certificate showing that you’re at least 45 years old;

• Birth certificate of your dependents;

• Two passport-size photos of the applicant and their dependents;

• Health certificate of the applicant and their dependents;

• Photocopy of the applicant's passport and their dependents;

• Marriage certificate, if applicable;

• Criminal record checks of the applicant and their dependents;

• List of household goods and documents of the new or used vehicle to be imported (or proforma invoice for local purchase);

• Certificate of naturalization if you have a nationality apart from that of your country of origin and, if applicable, of your dependents.

You are entitled to the following benefits and tax exemptions: 

• Apply for permanent residence immediately before the Directorate General for Migration and Foreigners (in Spanish, DGME);

• Exemption from the guarantee deposit required by the DGME;

• Duty-free treatment and exemption from all import taxes on household goods worth no more than $20,000 USD (or its equivalent in Cordobas);

• Exemption for VAT for the import or local purchase of new or used motor vehicles for personal use or that of their dependents worth no more than $13,000 USD;

• A one-time-only exemption from the VAT payment for the purchase of materials for the construction of the habitual residence worth no more than $50,000 USD;

• At the discretion of the Nicaraguan Institute of Tourism (INTUR), an exemption on materials worth no more than $200,000 USD may apply if the applicant is required to provide professional services to the Nicaraguan State, to technical or higher education centres or when his work is of social interest to the country.

If you have family ties with a Nicaraguan citizen or are married to one, you may benefit from an expedited path to residency

INVESTOR PERMIT (INVERSIONISTA)

The investor permit is for you if you want an expedited way to permanent residency and can pay a meagre $30,000 USD investment. What’s more, you can invest this amount in any of the three following options: 

• Real estate;

• New local business;

• Government-approved forestry or agricultural projects.

Once you make the investment, you need to submit the following documents:

• Certificate of Registration of Investment issued by the Ministry of Industry and Commerce (MIFIC);

• Certified copy of the Company Constitution or Declaration as a merchant registered in the Mercantile Registry;

• Photocopy of the commercial registration from the Mayor's Office;

• Solvency from the General Directorate of Revenues;

• Single Taxpayer Registry (Registro Único del Contribuyente, RUC);

• Notarized Declaration of Sources of Income;

• Residence application letter addressed to the General Directorate of Migration and Foreigners (Dirección General de Migración y Extranjería);

• Original passport in good condition and photocopy (valid for no less than six months). Nationals of CA-4 countries (El Salvador, Guatemala, Honduras and Nicaragua), in exceptional cases, may present an original and photocopy of a valid Identity Card;

• Two passport-size photographs;

• Birth certificate issued by the country of origin;

• Naturalization certificate in case of having another nationality, duly apostilled or authenticated;

• Criminal record check issued by the competent authority in your country of origin or residence for the last three years apostilled or duly authenticated by the Consulate of Nicaragua, the Ministry of Foreign Affairs of the country of origin, and by the Ministry of Foreign Affairs in Nicaragua

• Health certificate issued by the competent authority of the country of origin or previous residence, apostilled or authenticated, or by the Nicaraguan health authorities

SPOUSAL VISA (EXTRANJEROS CON VÍNCULO DE AFINIDAD O CONSANGUINIDAD CON NICARAGÜENSE)

If you are married to or have consanguinity ties with a Nicaraguan citizen, you can enjoy an expedited route for residency. Here are the requirements you must meet:

• Certificate of Marriage with a Nicaraguan citizen or Notarial Declaration of Stable Partnership, registered in the Civil Registry of Persons, both with at least two years of duration and in accordance with the provisions of the National Legislation;

• Photocopy of Citizen Identity Card or Birth Certificate of the Nicaraguan spouse;

• Birth Certificate and photocopy of the Nicaraguan children's Identity Card;

• If you are an economic dependent, you must present a notarized declaration of support and a declaration of sources of income of the person who assumes the support;

• If you have your own business, you must present a notarized declaration of sources of income, registration with the mayor's office, fiscal solvency and RUC identification card;

Related content: Beyond "I Do": The Benefits Of Citizenship By Marriage

In addition to its prime location, Nicaragua offers attractive benefits such as territorial taxation, affordable housing, and friendly locals. It’s a country worth considering

CONCLUSION

Nicaragua is probably one of the most underrated countries for expats. Whether you want to go down the investment route, live off passive income (private income or pension) or simply live with your Nicaraguan spouse, this country is more than happy to welcome you. 

Benefits like territorial taxation, affordable living, and friendly locals make Nicaragua a country worth considering. Additionally, its privileged location makes it an attractive hub for travel across the Americas and Europe, and after living the required time, you can also apply for citizenship. Whether you’re seeking a new passport or simply a Plan-B residency, remember we can work together to make your expat goals a reality.