Nicaragua is an attractive investment opportunity for companies seeking growth in the tourism sector.  People and nature combine to create an enchanting environment, while the government’s strong support for the tourism industry, with one of the region’s most generous tourist incentive laws, makes for a unique investment opportunity.

Kilometers of beautiful beaches, one of the world’s largest islands in a lake, a chain of over 20 volcanoes and genuine colonial cities combine to give your investment great competitive advantages.

A varied group of investors, ranging from boutique hotels in coastal areas and colonial cities to international resorts such as Barceló, Crowne Plaza, and Intercontinental, have set up successful operations in Nicaragua.  These companies are benefiting from the growing number of tourists that are choosing Nicaragua and from our tourism law’s generous incentives.  Between July 1999 and December 2004, over 300 projects have been approved under the tourism incentives law.

Nicaragua is being discovered by tourists around the world. The number of tourist arrivals has increased by 16% a year over the past 10 years.

Competitive Cost Structure and Incentives

• Qualified tourism projects can receive the following tax benefits under Law #306, the Tourism Investment Incentive Law:
  • 80% to 90% income tax (IR) exemption
  • Property tax exemption for 10 years (IBI)
  • Import tax and value-added tax exemption on the purchase of accessories, furniture, or equipment.

• Tax exemptions related to project implementation:
  • Value-added tax on design/engineering and construction services
  • Exoneration of import duties and taxes and of the General Value Tax (I.G.V.) for the local purchase of construction materials and fixed building accessories.

• Tax incentives can be extended if project undergoes extensive expansions
• Over 300 projects have been approved to benefit from this law since 1999.