Nicaragua

{"ftc_utility":"medium","fbar_trigger_notes":"US expats with Nicaraguan cordoba (NIO) or USD bank accounts exceeding $10,000 aggregate at any point in the year must file FinCEN 114. Nicaragua's banking system is dollarized in practice for many accounts. Local banks include BAC, Banpro, Lafise, and Ficohsa - all reportable foreign financial institutions for FBAR purposes.","ftc_utility_reason":"Nicaragua taxes residents on worldwide income at progressive rates up to 30%. US expats earning Nicaraguan-source income who pay local tax can use the foreign tax credit to offset US liability on the same income. For US-source income (e.g. remote work for US employers), Nicaragua would also tax it but the FTC applies against US tax. The lack of a tax treaty limits optimization options.","presence_day_count_notes":"Nicaragua generally allows 90-day tourist stays for US citizens, extendable. Long-term residency requires a residency visa (pensionado, rentista, or investor categories). The 330-day physical presence test under US law is achievable in Nicaragua as the country does not impose a maximum stay limit that would force departures disqualifying the count, provided valid immigration status is maintained.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":6000,"local_tax_rate_on_earned_income":0.25,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by Nicaraguan tax residents is subject to tax at progressive rates up to 30% on the net amount after any applicable deductions. No blanket pension exemption exists for foreign retirees. Nicaragua's Ley No. 822 taxes residents on worldwide income.","tax_rate":0.3,"locally_taxed":true},"social_security":{"notes":"No US-Nicaragua totalization or income tax treaty exists. US Social Security benefits received by a Nicaraguan resident are technically subject to Nicaraguan tax as foreign-source income. In practice, enforcement on foreign pension-type income for retirees living modestly is limited, but the legal exposure exists.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"Roth distributions represent return of after-tax contributions plus tax-free growth under US law. Nicaragua has no specific provision addressing Roth accounts. In practice, qualified Roth distributions may not be recognized as taxable income locally, but this is not codified. US expats should seek local tax advice given the absence of treaty guidance.","locally_taxed":false},"us_401k_ira_distributions":{"notes":"There is no US-Nicaragua tax treaty. Distributions from US 401(k) or IRA accounts received by a Nicaraguan tax resident would generally be treated as foreign-source pension or income. Nicaragua taxes residents on worldwide income at progressive rates up to 30%. A 15% withholding may apply depending on how the payment is classified. The absence of a treaty means no protection from double taxation beyond the US foreign tax credit mechanism.","tax_rate":0.15,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.15,"notes":"Capital gains in Nicaragua are generally subject to a 15% final withholding tax. Gains from the sale of real property may be subject to a separate transfer tax regime.","details":{"tax_type":"Capital Gains Tax","country_name":"Nicaragua","country_iso_code":"NIC","source_references":["PwC Worldwide Tax Summaries - Nicaragua","Nicaragua Tax Concertacion Law (Ley No. 822)"],"last_verified_date":"2026-06-03","general_description":"Nicaragua taxes capital gains at a flat 15% rate applied as a final withholding. Gains on the sale of shares and financial instruments are typically subject to this 15% withholding. Real estate transfers are subject to a 1% municipal transfer tax on the higher of the sale price or cadastral value, separate from the income tax on any gain. The 15% rate applies to the net gain for most asset types.","corporate_capital_gains":{"rate":0.3,"tax_treatment":"Capital gains earned by corporations are generally included in ordinary taxable income and taxed at the standard corporate income tax rate of 30%."},"individual_capital_gains":{"rate":0.15,"tax_treatment":"Capital gains for individuals are taxed at a flat 15% final withholding rate. This applies to gains from sale of shares, bonds, and other capital assets. Real property transfers also trigger a 1% municipal alcaldia tax on the transaction value."}}}

{"notes":"Dividends paid by Nicaraguan companies to resident and non-resident individuals are subject to a 15% final withholding tax under Ley No. 822. This rate applies to distributions from after-tax corporate profits.","rates":[{"rate":0.15,"type":"withholding","notes":"Final withholding rate on dividends paid to resident and non-resident individuals. Rate applies to distributions from Nicaraguan-source profits."}]}