Typical closing costs for a real estate transaction are set out in the box below. Some of the taxes are based on the ‘assessed value’ of the property rather than the stated purchase price. It makes sense however, to calculate the closing costs based on the full purchase price of the property despite the fact that, in practice, the property may be valued for a different amount by the Catastral Office. As this ‘assessed 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.
Also, the exact fees and costs charged by your lawyer will vary depending on the lawyer you have chosen, the type and location of property and the terms and conditions of the sale. A general guide to fees and costs is provided below to give you an indication of the range of services and associated fees.
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, with sellers covering real estate commissions.
- 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
- Preparation of Power of Attorney: $60
- Legal due diligence: Between 1% and 2% plus IVA (sales tax). On smaller purchases a minimum fee (typically $600 plus sales tax) may apply.
- Survey of (residential) lot (where needed): $50-300
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