Investing in Nicaragua Real Estate

Participate in an early-in investment real estate market

Critical to any successful real estate investment is the question of timing. Ideally, you want to invest in any real estate market at the right time and in the right place. In Nicaragua today there is an opportunity to catch a positive growth trend before the rest of the world catches on - what we call an early-in investment real estate market.

Vacation and retirement destinations spring up all over the world - Costa Rica, The Bahamas, Jamaica, Aruba, were all once a figment of someone's imagination. Today, these countries welcome millions of people from all corners of the earth… and Nicaragua has set her sights on being added to that list. If you missed taking profits in places like Mexico, The Virgin Islands, and Hawaii, now is the time to discover opportunities in Nicaragua.

Tourism meets real estate in Nicaragua

Nicaragua boasts a rich cultural heritage, beautiful scenery, incredible biodiversity, lakes and volcanoes and an ever growing range of leisure activities. Tourism was a non existent industry not long ago but is now the country’s top earner. Visitor numbers are increasing dramatically and set to break the 1 million mark this year.

Tourism trends are useful predictors of real estate sales. You know how it goes. You go on holiday, you find a charming little fishing village and spend two glorious weeks relaxing and enjoying the lifestyle. On one of your last days you glance in a realtor’s window and start looking at property. In Costa Rica the course of events was much like what is happening today in Nicaragua: First, political stability was achieved with focus on improving the economy and infrastructure. Then its wealth of spectacular beaches attracted tourists in record numbers …followed by retirees and real estate developers.

Nicaragua and baby boomers

The demographics are set to underpin considerable future growth in Nicaragua’s real estate market. Time Magazine recently reported: "Many of the 76 million American boomers are more likely than their parents to consider retiring to a foreign land, because they have traveled more, have higher hopes for retirement, and tend to be more active and adventuresome." The Baby Boomers are looking beyond Florida and the southern states to countries in Central America. Nicaragua stands out as offering a unique combination of low cost of living, affordable properties as well as one of the most attractive retiree benefits package in Central America.

Investing in Nicaragua has few restrictions

Nicaragua’s foreign investment law establishes equal treatment of foreign and domestic investment, eliminates restrictions on the way in which foreign capital can enter the country, and recognizes the foreign investor's right to own and use property without limitation. There are no restrictive visa or work-permit requirements to inhibit investment. Much of the property is held as freehold (fee simple) title and, as of 2006, three major international title insurance companies offer insurance on property in Nicaragua: First American, Stuart Title and Land America.

Without question, and at times contrary to popular belief, Nicaragua is a stable, safe, and peaceful country for investment. It is this misunderstanding that many investors work to their advantage. Here are the facts: Nicaragua is the second safest country in all of Latin America (behind Uruguay) and has a lower reported crime rate that than France, Germany and the United States, according to a United Nations/Interpol study.

In Nicaragua you can run a tourism-related business tax-free for up to 10 years

Nicaragua's Law 306 is one of the most attractive, and extensive, tourism-incentive laws in Latin America. This law is sweeping in scope and offers hard-to-beat benefits for investors who take advantage of the program. If your business qualifies, you pay no income taxes for up to 10 years, pay no real estate taxes for up to 10 years, and bring in (or buy locally) all the supplies you need, from furniture and boats to linens and cash registers…tax-free. If you've ever considered starting a business, opening a cafe, having a B&B or running guided tours …Nicaragua is the place to do it.

Nicaragua has one of the fastest real-GDP growth rates in the region

Nicaragua has one of the fastest real-GDP growth rates in Central America and has complied with prescribed IMF demands for cutting its deficit, implementing structural reforms, and maintaining overall monetary stability. The Nicaraguan Government has participated in successful completion of negotiations of the Central American Free Trade Agreement.

Nicaragua is set to benefit from rapid and sustained economic growth in the years to come. The passage of several laws specifically designed to attract and protect foreign investors have opened an exciting window for investment in Nicaragua. The in-flow of foreign direct investment is increasing rapidly. Since 2002, 10 major shopping centres have opened as well as numerous international hotels and restaurants. Toursim is booming and those arriving will have witnessed the massive upgrade taking place in roads and utilities, particularly in Granada, the capital Managua, the beach town San Juan del Sur and elsewhere on the Pacific coast. Already investors have seen returns of upwards of 100% on purchases in key ‘hotspots’ since 2000.

It takes little imagination to see where Nicaragua is heading.

Selected books on living and travelling in Nicaragua and on its history and culture