Nicaragua offers an attractive retirement program designed to encourage retirees and pensioners to move to Nicaragua. The key piece of legislation is Decree No. 628, the “Law of Resident Pensioners and Retirees” which states that retirees are eligible for benefits.
In June 2009, the Tourism Institute announced changes to the residency and retirement laws that increased 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 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 proves stable income.
- Applicants can present a naturalization certificate instead of the birth certificate.
- An exemption from sales taxes now applies on home construction materials up to the first $50,000.
Documents needed 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