What are the typical closing costs for a property transaction in Nicaragua?
Typical closing costs for a real estate transaction are set out below. In some cases these can be negotiated with the seller. It makes sense to calculate the closing costs based on the full purchase price of the property despite the fact that, in practice, the property may be valued by the Catastral Office at less than the actual purchase price. As this 'assessed value' will not be known until after closing, the transfer tax and registration fee are normally calculated on the full purchase price to be on the safe side and any extra refunded to the buyer once the registration process has been completed.
Also, the exact fees and costs charged by your lawyer will vary depending on the lawyer you have chosen, the type and location of property, the terms and conditions of the sale and whether or not you wish to take out title insurance. A general guide to fees and costs is provided below to give you an indication the range of services and associated fees.
| Transfer tax | 1% |
| Registration tax | 0.55% (capped at $350 for commercial property) |
| IMI tax (for purchases in San Juan del Sur) | 1% |
| Registration administration fee | $100 |
| Preparation of Power of Attorney | $75 |
| Legal due diligence | Between 1% and 1.5% |
| Application for First American Title Insurance (where applicable) | Between $500-1500 |
| Survey of (residential) property (where needed) | $50-300 |
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