Nicaragua

Nicaragua - Civil Law
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Nicaragua taxes

If you want to do business in Nicaragua, this article explains the tax laws for a Sociedad Anónima (S.A.), which is the most common company type in Nicaragua.

Nicaragua taxes corporate income on a territorial basis. This means that income earned outside the country, from our research, but seek professional advice, is not subject to taxation. Income accrued within the country is taxed at a corporate income tax rate of 30%. Nicaragua ranks 136th overall with regards to corp. taxation rate internationally.

The valued added tax rate in Nicaragua is 15.00%, that ranks the country as 79th when compared to value added tax rate worldwide. In terms of other taxation, an employer will contribute 19% to the equivalent of a social security fund and an employee will contribute 6.25%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 76hours. Contributing to this is the number of yearly labor tax payments, which is 2 in NI.

Thin cap standards aren't in effect. Thin capitalisation refers to any type of restrictions on a business and the debt-to-asset ratios.
Dividends received are generally tax-exempt. However, stock dividends may be considered capital income and subject to a withholding tax of 10%. A dividend is a distribution of a portion of earnings of the business, established by the board, to shareholders. Dividends can be either cash payments, shares of stock, or other property.
Capital Gains are generally subject to a final withholding tax of 10%. Reduced rates may apply for gains from the transfer of Nicaraguan shares that took place outside the country (5%), gains from the lease of fixed assets and non-fixed assets (7% and 5%, respectively) and gains from the transfer of certain assets such as real estate or vehicles (progressive rate from 1% to 4%). A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 15%. Which means that the taxman expects legal entities to pay tax on15% of interests remitted abroad. The dividends withholding tax rate is 15%. This should be interpreted that usually the tax authorities expects legal entities to automatically withhold 15% of dividends remitted abroad. The royalties withholding tax rate is 15%. This means that the taxman expects legal entities to withhold 15% of royalties paid to non-residents. Payments on dividends, interests or royalties to residents of jurisdictions considered tax havens are subject to a withholding tax of 17%.
There is no known tax on wealth in Nicaragua. There are real property and inheritance taxes. There are no widely used research and development tax incentives in this country.

The above is not tax or legal advice for your particular circumstances. We are able to refer you to an expert in Nicaragua who will advise you. Click the free consultation button above or press Incorporate now if you are in a hurry.

It takes approximately 67 hours to file and prepare documents for a Nicaragua Civil Law.
The corporate tax is approximately 30% which is 136 in the world.

Owners of a company in Nicaragua are not allowed to carry back a loss and may be allowed to carry forward a loss for 3 years.

The vat rate in Nicaragua is 15% which ranks 78 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
3Tax treaties
0%Offshore Tax
30%Corp rate
-Loss carryback years
67Corporate time
15%VAT rate
10%Capital gains
NoAEOI planned

Read this to learn about incorporating a company in
Nicaragua

We can help you form a company in Nicaragua. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Nicaragua, which is required by law.

We can help you with your incorporations needs for an initial payment of just $1000.

Easy Step by Step Process:
The standard process typically takes between two (2) to three (3) weeks depending on when we receive all the required information from you. Once we receive your information, we will email you a complete set of documents for your review within 3 working days upon confirmation of payment. After executing the documents, you will need to mail them to us and we will formally submit your application for filing with the Registry. The Registry will then take about 3-8 working days to process the incorporation and produce certificates necessary for opening your bank account.

Applying for Your Bank Accounts:
Incorporations.IO maintains close working relationship within our extensive network of partner banks to help you apply for and receive banking services that are most appropriate to your specific situation. From the time of verification of incorporation it can take (1) one week to (2) two weeks to apply for and receive a bank account. We work primarily with banks that allow for remotely opened accounts to ensure you are ready to do business as soon as possible.

Applying for Payment Processing:
We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we have partners that can assist you and are happy to help you with introductions that can empower your business.

Start Online or via Phone:
We can get started for you whenever you are ready via a US$1000 initial payment via credit card. I get notified whenever a payment is made here and would send out the welcome letter and initial forms we would need within 12 hours. If you prefer, we can also process via a phone or Skype call.

Nicaragua Tax Treaties

CountryTypeDate signed
Costa Rica
TIEA2006-04-25
Guatemala
TIEA2006-04-25
El Salvador
TIEA2006-04-25

Country Info

National Flag of
República de Nicaragua (spa)
Currency
NIO
Area Code
+505
Capital
Managua
Region
Central America
Native Languages
Spanish