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Residency as Foreign Investor

Nicaragua is attracting more and more foreign investment in several areas, some of which are big investments like energy, mining, tourism, garment-based free zone companies, farms, real estate, etc. and others are smaller investments such as a Bed & Breakfast, farms, property rentals and so on.

Either type of investment is positive for the country and for Nicaraguans; that is why it is mandatory to follow the right path when investing.

For a foreigner it is important to know the following steps:

1. - Form a Corporation in Nicaragua; the best way is through a Limited Liability Company or a Sociedad Anónima, in Spanish).

2. – Then the second step is to invest money in Nicaragua either by purchasing property, importing equipment for the corporation and so on. Previously, it was possible to invest in the personal name of an individual and the corporation was limited to only administrating the business, nowadays this has changed. If the investment in Nicaragua is over thirty thousand dollars in any kind of business e.g., tourism, industry, farms, etc. the government will file the corporation in its records as a Foreign Investor.

3. The third step will be the application for Residency as a Foreign Investor.


To be considered a Foreign Investor in Nicaragua, the Ministry of Industry, Commerce and Development (MIFIC) is bound to confirm the investment. An appraiser will visit the property or site of the investment and it will then be mandatory to obtain a certification from a CPA. As a result, an Endorsement’s Certification will be issued. This document will support the application for Residency as Foreign Investor in Nicaragua, which is considered a Permanent Residency for a period of five years. After five years, MIFIC has to extend a new Endorsement Certification and it will be necessary to renew the Residency period. Nowadays MIFIC requires a re-investment of 15 - 20% percent of the initial investment.

The minimum investment to be considered as Foreign Investor is thirty thousand dollars, which can be invested in Real Estate, Equipment, Tools, etc.

Immigration Authorities will require the following basic documents:

1. Police Record

2. Health Certificate

3. Birth Certificate

4. Copy of the Corporation´s documents and a copy of the Power of Attorney granted to the Legal Representative in Nicaragua.

5. A Copy of the Cédula RUC from the DGI, Income Revenue Service in English.

Requirements to form a Corporation (S.A.) in Nicaragua:

1. Sign the Articles of Incorporation in a Public Deed with a Nicaraguan Notary, in Nicaragua

2. Registration of the Articles of Incorporation at the Public Registry for Commerce.

3. Registration of the Company Books (Minutes Record, Stock Record, Journal and Ledger) at the Public Registry for Commerce.

4. Registration as a Merchant at the Public Registry for Commerce.

5. Registration at DGI (equivalent to IRS in the USA)

6. Registration at the Municipality.

7. Issue of the Stocks and the registration in the Stock Record Book.

The minimum information for the Articles of incorporation is:

1. Full name of all the partners. The minimum have to be two business partners, both can be foreigners, it is not mandatory to have a Nicaraguan business partner.

2. Name of the Company.

3. The Purpose of the Company.

4. The Initial Capital.

5. Full list of members of the Board of Directors.

Best Regards, Paul Tiffer R.

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