Real estate investments often promise attractive returns. However, in Nicaragua, the rewards can be even more substantial thanks to the tax benefits associated with these investments. Both local and foreign investors can access these advantages. Here, we break down these tax benefits and how they can enhance your investment in Nicaragua's real estate sector.

Tax incentives and real estate investment laws

Nicaragua has laws with tax incentives that considerably favor investors in the real estate sector. Among these, the Investment Promotion Law offers tax exemptions for both local and foreign investors who enter certain sectors, including real estate. These exemptions could involve not having to pay certain taxes or a significant reduction in tax rates when making a real estate investment.

The benefits don't end there. In addition to these exemptions, you may be eligible for other tax incentives depending on the type and location of your real estate investment. From housing development to tourism projects, the opportunities to maximize your tax benefits in Nicaragua's real estate sector are vast.

Additional benefits for foreign investors

For foreign investors, Nicaragua offers additional tax benefits. The Law of Legal Stability for Foreign Investments guarantees that foreign investors will not be subject to changes in tax laws for a period of up to ten years from the start of their investment. This regulation provides a sense of security and financial predictability, key elements when considering an international investment.

In addition to these tax benefits, real estate investment in Nicaragua can offer attractive returns. Thanks to a growing economy and an emerging real estate market, foreign investors have the opportunity to participate in a market with great growth potential.

Benefits for property rentals

For those who purchase a property with the intention of renting it out, there are tax deductions that can be very beneficial. Expenses related to the maintenance and management of the rental property, as well as interest paid on a mortgage loan, may be tax deductible.

These tax deductions can significantly reduce your tax liability, thereby maximizing the return on your investment. It is important to remember, however, that tax laws may vary, and it is always advisable to seek the advice of a financial advisor or real estate expert.


Investing in the real estate sector in Nicaragua can have great tax advantages that go beyond typical financial returns. Whether you are a local citizen or a foreign investor, you can take advantage of tax incentives, exemptions for foreign investors, and tax deductions for property rentals. Make sure to thoroughly understand these benefits and leverage them to maximize your profits.

At Discover, we are ready to guide you through this process and help you make informed investment decisions. Contact us!