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Why El Presidente Ortega Hasn't Changed Our Minds About Nicaragua
Real estate prices in Nicaragua rose steaily through the end of 2006. With
Sandinista Danny (Ortega) scheduled to re-take office at the beginning of 2007,
though, and the U.S. real estate market beginning to tumble, investors began to
pull back, taking a wait-and-see attitude.
Meantime, the tourists kept coming to this bueautiful and diverse land, but,
with so much uncertainty on both sides of the investment equation, most were
content to enjoy the scenery...without staking a claim to a piece of it for
themselves.
A little more than a year later, and the bad press initially
surrounding the re-election of El Presidente Ortega is turning.
Ortega is playing nice with the U.S. He is working to clean up title on 3,800
properites held by Nicaraguans. And he continues to support foreign investors'
land rights. While most U.S. speculators are holding their sidelines approach to
the Nicaragua market, the tourists are beginning to buy in again.
Sales aren't as brisk as before Ortega's re-election, but they are trending up,
especially near the tourist hubs of Granada and San Juan del Sur.
As unlikely as it may seem, surfers, especially in the wake of Ortega's
re-election, have become a real estate market force. They don't seem to care who
holds office...as long as the surf is up...and the surf off Nicaragua's south
Pacific shores is considered five-star. Surfers have continued to come, to ride,
and to buy, ongoing political events notwithstanding.
We have to admit...we don't surf. However, we've been infaturated with
Nicaragua for 15 years, a country working
hard to set itself firmly on the path of peace, prosperity, and open markets.
We're invested here ourselves and would have no reservations investing further
today.
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Nicaragua at a Glance
| Population |
5.7
million (July 2007) |
|
Gross Domestic Product (GDP) |
$18.17 billion (2007) |
|
GDP Per Capita |
$3,200 (2007) |
|
Inflation Rate |
9.8% (2007) |
| Currency |
Gold Cordoba (NIO) |
|
Exchange Rate Versus U.S. Dollar |
18.457 gold cordobas = 1 U.S. dollar (March 2008) |
|
Language |
Spanish (official) |
|
Capital |
Managua |
| Population of Capital
City |
1.7
million |
| Time Zone |
GMT
minus 6 |
| Seasons |
Tropical; rainy season lasts from June to December |
|
International Dialing Code |
505 |
| Electricity |
120V / 60 Hz; Plug Type: A (US style) |
| System of Government |
Presidential Republic |
Name and Party
Affiliation
of Current Leader |
Daniel Ortega
Sandista
National Liberation Front |
|
Income Tax Rate for Residents |
10%
to 25%; 15% for all income earned within Nicaragua |
|
Property Tax |
0%
to 1% |
|
Capital Gains Tax |
Taxed at income tax rate |
|
Inheritance Tax |
Taxed at income tax rate |
|
Rental Income Tax |
Taxed as income tax rate |
|
Transfer Tax |
1%,
paid by seller |
|
Sales Tax |
15% |
Restrictions on Foreign
Ownership of Property |
None |
|
Local Chamber of Commerce |
|
|
American Chamber of Commerce |
Apartado Postal 202
Managua
Tel: (5052) 67-30-99 |
| Primary Exports |
coffee, beef, shrimp, lobster, tobacco,
sugar, gold, peanuts |
| Residency and Visa
Requirements |
Tourist Visa: automatic 90 days upon entry
Residency:
permanent residence and
investor's residence visas, including pensionado
and rentista
Citizenship: three years of uninterrupted,
legal
residence |
Special Benefits for Foreign
Residents or Retirees |
No income
tax on external income; tax-free import of
household goods and vehicle |
|
National Airline |
None |
| Preferred Contact |
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