Residency and Tax Incentives for Retirees in Nicaragua
When you decide to leave everything behind and move to a new country to spend your golden years in a completely new environment and culture, it is always a plus if your new home country makes the move easy and even throws some incentives into the deal.
People in Nicaragua are very warm and welcoming, you have a tropical climate, property prices are still low and Nicaragua makes retiring easy. You have to prove that you are a citizen of the country of origin, that you are of good health, physically and mentally, you have to have a police record of good conduct from your local police and at least USD 600.00 monthly fixed income from Social Securities or pensions. If you come with dependents it is an extra USD 100.00 per dependent. The minimum age is 45, but their are exceptions if a regular income can be proved. You will have to provide the following papers, notarized and translated into Spanish (the Spanish version has to be notarized as well):
- A copy of your birth certificate
- A copy of your passport
- A certificate or letter from your doctor stating that you’re in good physical health, are free from communicable diseases, and are mentally sound
- A certificate or letter from your local police department stating that you’ve not been convicted of any crime
- A certificate of income from your bank or pension plan affirming that you’ll have enough money to meet the minimum requirement of US$600 a month
- A list of the household goods you will be importing.
The benefits you will receive after obtaining your residency permit are as followed:
- import up to US $20,000 worth of household goods for your residence, duty-free
- One (1) vehicle valued at US $25,000 or less will be permitted to enter Nicaragua and be used by the retiree, duty-free
- A retiree may bring one (1) additional vehicle to Nicaragua with a value of US $25,000 or less, duty-free, every five (5) years
- Retirees constructing residential homes will be awarded a tax exemption of US $50,000 off the cost of building material
So what are you waiting for, if you haven’t decided yet where to retire, you may want to give Nicaragua a chance and visit this beautiful country to see if it is right for you.
Also – we have a guide to buying real estate in Nicaragua for you to check out.