Registration and transfer taxes are based on the “assessed value” of the property rather than the stated purchase price. As this value will not be known until after closing, an initial estimate of the transfer tax and registration fee is normally calculated on the full purchase price.
While the law in Nicaragua indicates that transfer taxes are paid by the seller, standard practice varies from location to location. In San Juan del Sur for example it is common practice for the buyer to pay the transfer tax, but this can be a negotiation point. Registration and IMI taxes are normally paid by the buyer.
As a seller you are responsible for paying your annual property taxes the last time they were due.
- Transfer tax: 1% for properties priced below $50,000; 2% for properties priced from $50,000 to $100,000.00; 3% for $100,000 to $200,000 and 4% for $200,000 and higher.
- Registration tax: 1% (capped at $1,250)
- IMI tax: 1% (for purchases in San Juan del Sur and certain other municipalities)
- Registration administration fee: $200
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