Nicaragua

The Coastal Law in Nicaragua was approved in June 2009 contributing to a more stable and clear investment environment for residential real estate and tourism infrastructure to beach areas for development. The Pensioners Law in Nicaragua was approved in July 2009 by the Legislature considerably improving the benefits and incentives for people retiring in Nicaragua to be the most attractive in Latin America. The Barceló Hotels group from Spain signed a Joint Venture agreement with the Nicaraguan Government October 2012 in order to develop the existing small local airfield into an international airport located in Masachapa along the Pacific Coast of Nicaragua and only a 15-minute drive to Grupo Mariana’s flagship real estate development.

Nicaragua has redefined itself over the last 25 years so that it is now becoming a destination country for people looking for the next big thing. The numbers of people visiting Nicaragua and the number of people who have invested in the country have been on a dramatic upward trajectory. The New Nicaragua has emerged as the must see destination in Central America.

The people of Nicaragua are renowned for their hospitality and receptiveness to visitors, based in a strong family oriented society. For the adventurous, the country is a realm of endless possibilities, including canopy tours through the forests, diving and snorkeling along living reefs, surfing and kayaking, exploring volcanoes and crater lakes, hiking mountain trails, or just relaxing on an expanse of beach. The capital city of Managua possesses a strong urban energy with many of the features expected from a metropolitan area, including expansive shopping and entertainment, a state-of-the-art medical center and international airport.

Most major airlines offer daily service to Nicaragua, including non-stop flights from major U.S. cities. Easily accessible are the cities of Granada and Leon, which offer a more languid and historic experience. Granada is the country’s oldest European-settled city where the architecture reflects the strong Spanish influence. Leon is the Nicaragua’s intellectual center featuring a collection of cultural influences and unmatched in Central America. Smaller towns and villages offer visitors a colorful introduction to a simpler way of life virtually unchanged over the decades.

It’s this simplicity that flavors the New Nicaragua even as it begins to flex its renewed strength of purpose. These things converge in Grupo Mariana, which is inextricably linked to the future of the country. Together, the country and resort have built a platform from which a compelling story can be told. In Nicaragua, the saying goes that every citizen is a poet, and this passion for all things is aptly and fully demonstrated in the country’s raw energy and zest for life.

In Nicaragua, 100% international property ownership is permitted. Unlike many other countries, there is no discrimination against foreign investors, whether it is total ownership of a company or as shareholders. The Nicaraguan law recognizes and guarantees the legal rights of all investors, irrespective of nationality.

Law 344, which was created for the Promotion of Foreign Investments, is the main legislation that governs foreign investment in Nicaragua. Law No. 344 not only provides equal treatment of foreign and domestic investment but it also eliminates restrictions on the ways in which foreign capital can enter the country, and the law recognizes the foreign investor’s right to own and use property without limitation or restriction.

Private foreign exchange market operated by local financial institutions allow for the remittance of capital, earnings, loan repayments and lease repayments freely and without restriction. National loans are accessible through local banks and law guarantees full property protection.

The real estate market boom in Nicaragua is being driven by both residential and commercial property. On the residential side many baby boomers from the US are discovering Nicaragua as a less expensive alternative to Panama, Mexico or Costa Rica where prices are typically 30-70% higher and the potential for capital appreciation is slowing down and cash flow on investment properties is not what is used to be.

Overall, this is an excellent opportunity to invest with a leading development team in one of the fastest growing, stable and thriving markets within Latin America. Nicaragua is emerging quickly onto the world stage, and Grupo Mariana is one of its resounding stars. Beachfront real estate maintains a high yield on investment. Recognizing that history is a great teacher, an investment now in Grupo Mariana is likely to enjoy the remarkable returns witnessed in neighboring countries over the last decade.

Inevitably, time will escalate the price of quality real estate. To produce the greatest returns, Grupo Mariana will drive valuations higher through the addition of an international hotel, strategic development partners, and capital financing partners such as local banking institutions, Central American Bank and other institutional investors from private & public equity funds, pension plans and sovereign wealth funds.

75 MILLION people will be retiring in the next two decades. The impact of this will be felt not with a bang, but a BOOM.

Statistics dictate that 6 MILLION of these retirees will not be able to afford to live the lifestyle they desire in the USA. They will seek other places to go – preferably places that are warm with a lower cost of living! The ones who retire wealthy will be looking for adventure and spectacular second homes – especially if those homes boast luxury living complete with a championship golf course, spas and direct oceanfront property.

Massive transfers of wealth will be happening, which will enable the more worldly, less risk-averse benefactors of this wealth transfer to buy the overseas dream properties they’ve coveted. An international lifestyle will become more commonplace as international barriers are steadily overcome. By now, you’ll have guessed that we’re talking about the Baby Boomers. The ramifications of this generation retiring will be far reaching and represents an extraordinary opportunity – for the savvy investor.

Nicaragua is poised for explosive growth – and you might be crazy NOT to invest some resources there. No previous U.S. generation has seen the world change faster and more dramatically than the 76 million Baby Boomers. If you’re one of them, you understand that for many there exists a feeling of being in a special place and time, of seeing and experiencing a myriad of transformations that imbued many with a residing sense of adventure.

That quest for adventure now is manifesting itself in the search for lifestyle options that will provide healthy returns and something different from their parents’ idea of retirement. For Boomers, it may be a desire to seek new business opportunities paired with a lifestyle shift. Or it may be reinventing themselves in a way and place that keeps them active and involved.

And that’s where Nicaragua comes in. The largest country in Central America, Nicaragua also is the one now playing catch-up with its neighbors, due to a recent history of political uncertainty that hampered the country’s social and economic evolution. However, after nearly two decades as a stable democracy, Nicaragua is emerging rapidly as the place where natural beauty and economic growth are combining to fuel incredible investment opportunities. Many as enough to justify investment view its staggering natural beauty. Nicaragua is home to seven percent of the world’s biodiversity, with 76 protected areas encompassing more than 20 percent of its landmass.

Along with these pristine natural features are other elements that always have attracted the curious and daring, including temperate weather, a strong history and culture, scores of recreational and tourism opportunities, picturesque cities and towns, and, perhaps most enticing, a warm and welcoming population. In addition, the country also now features a robust and growing economy, stable government and the lowest crime rate in Latin America at just 12 crimes for every 100,000 citizens.

The blend of Spanish and Indian cultures on an exuberant natural environment has produced the most interesting and colorful country in Central America. Colonial cities, volcanic parks, Indian markets, natural wildlife, sunny beaches, friendly people, and much more for you to see… come and visit this wonderful country!

To be eligible for a Nicaraguan residence you must complete the following requirements:

1. Fill out the Residence Application Form.

2. Photocopy of all the used pages of the passport (valid for the next 6 months).

3. Two recent pictures (passport standard size)

4. Criminal Record of the country where you currently reside dully authenticated by the Ministry of External Affairs and the Consulate of Nicaragua in that Country.

5. Health certificate of the country where you currently reside dully authenticated by the Ministry of External Affairs and the Consulate of Nicaragua in that Country.

6. Certificate of Birth of the country where you currently reside dully authenticated by the Ministry of External Affairs and the Consulate of Nicaragua in that Country.

7. If you are coming with your wife or husband; Certificate of Marriage of the country where it was celebrated dully authenticated by the Ministry of External Affairs and the Consulate of Nicaragua in that Country.

8. Private Working Contract (If your are going to work in a Company in Nicaragua – Done by a Company established in Nicaragua). The Immigration Department states as a requirement a private working contract that states the intention to hire the applicant in the company if Nicaraguan authorities approve the residence request. This document can be done by the company established in Nicaragua and signed by the person in charge of its administration.

Note: To assure that this document is done accordingly, we recommend signing it in our law firm or review such contract to give our recommendation if it is enough to include it in the application. This contract must be in Spanish.

9. Sworn Declaration (done in Nicaragua by a Public Notary) by the person in charge of the company stating that the company has the intention to hire you and that they will take care of you and guaranties that the company will send you home back to your (native) country, after your working contract has finished.

10. Power of attorney, so we can represent the applicant.

11. To pay the Guarantee Deposit equivalent to the cost of a return ticket to the native country. The Nicaraguan Immigration Office has a list with the amount for each nationality.

In June 2009, the Tourism Institute announced changes to the residency and retirement laws that increase the tax exemptions and benefits. All in all this new suite of laws make Nicaragua’s retirement program one of the most benefit-laden in the region.

Here are some of the specifics of the program:

• Pay no taxes on any out-of-country earnings.
• Bring up to $20,000 worth of household goods for your own home, duty-free (The previous exemption was for US$10,000).
• The tax exemption for vehicles will be increased from $10,000 to $25,000.
• Import an additional vehicle every 5 years under the same tax exemptions.
• The minimum age for eligibility is 45, but this can be waived if the applicant provesz stable income.
• Applicants can present a naturalization certificate instead of the birth certificate.
• There will be an exemption from sales taxes on home construction materials up to the first $50,000.

Documents need for applying for retiree status in Nicaragua include:

• A copy of your birth certificate (or naturalization certificate)
• A copy of your passport
• A certificate of letter from your doctor stating that you are in good physical health, are free from communicable diseases and are mentally sound.
• A letter from your local police department stating that you have never been convicted of any crime
• A certificate of income from your bank or pension plan
• A list of the household items that you will be importing

One of the purposes of that law is to regulate, through the General Immigration Directorate, the entry and stay of foreigners in our country, without violating their individual and social rights and under the same conditions as nationals except for those exceptions contained in the Constitution and laws of the Republic.

There are two types of residence: (i) Temporary and (ii) Permanent.

The Temporary Residency classifies the sub-category of self-employed or as dependent employees of a business.

The general requirements to apply for residency in Nicaragua are:

• Original passport, valid for at least 6 months
• Two passport-size photos up to date
• Birth certificate or naturalization, as applicable
• Health Certificate
• Police Records Certificate
• Marriage Certificate (if the spouse is also applying for the Nicaraguan residency)

All documents before mentioned must be issued by the appropriate authorities of the applicant’s country of origin and submitted in original and duly certified by the Consulate of Nicaragua in that country.

Such request may be done at the General Directorate of Immigration if the alien is already in Nicaragua; in case the alien is outside of Nicaragua, the application can be made through the Nicaraguan Foreign Service officer in the diplomatic missions and consular offices.

Specific requirements to apply to the sub-category of self-employed or as independent  worker or in a dependency relation will be determined in the Regulation issued by that law.

To hire a foreigner, the employer must request the presentation of the residency card, which must always be valid for the duration of the employment relationship.

Companies employing foreign personnel must also fulfill the provisions of labor legislation, the Immigration Act and its regulations.