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Frequently Asked Questions
Get familiar with the most frequently asked questions about purchasing property in Nicaragua.
Yes, as long as you have a valid passport you can buy property in Nicaragua. You have the same rights to own property as naturalized Nicaraguans.
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Yes, you do. We highly recommend finding an experienced and knowledgeable real estate transactional attorney who is reputable and practices in the area where you are purchasing the property. You will need the support of your attorney in the due diligence, closing documents, and the process of registering the property in your name.
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- Find a realtor to represent you.
- Find and choose a property.
- Make an offer and get a contract in place with the accepted terms to follow.
- The lawyer will do a due diligence work to make sure the property is in good standing, without any liens, solvent of taxes, and that the survey coincides with what you are buying.
- Closing documents and finalizing payments.
- Register the property to your name.
The requirements to register are a Topographic Plan and Cadastral Certificate authorized and approved by the Physical Cadastre; Municipal Solvency (Real Estate Tax) that is requested at the corresponding Municipal Mayor’s Office; Cadastral Appraisal Certificate and proof of payment of the Real Estate Transfer Tax, issued by the General Directorate of Revenue.
Most transactions are made in cash payments. However, in some cases, we can find short-term financing options from sellers, and the conditions will vary with each transaction. Normally, the down payment is 30% and 50% of the sale price with maximum payment terms of 2 years with monthly payments. In Nicaragua, some banks are offering the opportunity of financing to foreigners with a prior study, but the down payments are a little higher and the mortgage terms are approximately 10 years.
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Annual property taxes of 0.8% are paid on the assessed value of your property to the local municipality.
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There are many factors to consider when estimating build costs. For budget purposes, we suggest a range from US$95 – US$140 per square foot.
No, not if you leave a power of attorney in place. You can get a POA in Nicaragua or it can be done outside Nicaragua.
There are 3 ways to become a resident. These are the basics. We recommend talking to a reputable lawyer for more in-depth information about becoming a resident of Nicaragua:
- Investor:Â Foreign citizens can apply by investing US$30,000 to create a business or by investing in an existing business. The most important item to consider is that this must be a formalized and registered business in Nicaragua.
- Retiree:Â a person retired from a public or private institution who desires to be a permanent resident in Nicaragua and receives a minimum monthly pension equivalent to US$1,000.
- Person with private income:Â a person who has a stable and permanent income, such as dividends, lease, loans, credit, among others, from abroad, and desires to be a permanent resident in Nicaragua and receives a minimum monthly income equivalent to US$1,250 for at least 5 years.
Nicaragua is one of the safest countries in Central America, and San Juan del Sur and Tola are one of the safest places in Nicaragua. Crime is very low in Nicaragua and people are very friendly. The main problem we have seen is with petty theft, so don’t leave your camera, cash, or other valuables on the beach while you take a dip in the ocean. Just use common sense and you will be ok.
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There are two seasons on the Pacific coast of Nicaragua. The dry season is from December to April and the rainy season is from May to November. In the dry season, it rarely rains in Nicaragua, and in the rainy season, it will rain for a portion of most days. October is by far the wettest month in Nicaragua. The average yearly temperature on the Pacific coast of Nicaragua is 81° F (27° C) with an average rainfall of 75 inches annually.
Public medical services in Nicaraguan hospitals are free. San Juan del Sur has a primary hospital and Tola has a health center. If you require private medical attention, the best option is the Vivian Pellas Metropolitan Hospital, which is located in the city of Managua, approximately two hours from both cities. This private hospital provides first-class medical service with state-of-the-art equipment.
Contact us in advance, we can sort you out with a private transfer car or SUV.
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From San Juan del Sur LIR (Liberia, Costa Rica) and MGA (Managua). More people are flying to Costa Rica and arriving in Nicaragua via the land border. The time from Liberia is about 3 hours, depending on the time at the border crossing. The time from Managua is approximately 2.5 hours.
From the Tola area ECI (Emerald Coast International)
You’ll be pleased to hear that there are several exceptional education opportunities in the area of San Juan del Sur. There are religious schools, public schools at no cost, and two excellent schools for foreigners: San Juan del Sur Day School and Escuela Adelante.
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