Legal advice and protection of investments related to tourism, constitution of free zones and other investment fields

If you are an investor interested in the tourism industry or in the constitution of a company that operates under the free zone regime in Nicaragua, we understand the challenge of having to familiarize yourself with the processes of adaptation to the legislation and requirements to legally operate in the country. Although Nicaragua has a clear legal platform on which you can design and develop different commercial structures, it is vital that you obtain advice from investment lawyers to know the requirements applicable to your project so you can make strategic decisions that help you scale your business.

The good news is that there are reliable corporate law firms such as Corrales & Associates, who have provided comprehensive legal advice to foreign investors from various fields and who are in different phases of the investment process: from the initial due diligence to business registration, advice to portfolio companies, registration of a branch or subsidiary, as well as the dissolution and liquidation of companies when necessary. Whether you are in your early beginnings as an entrepreneur, or if you are a multinational corporation expanding your business into the land of lakes and volcanoes, Nicaragua, our team of experienced investment attorneys are here to assist you.

Why hire Corrales & Associates for the legal protection of your investments in Nicaragua?

Corrales & Associates has a team of lawyers who specialize in tourism, constitution of a free zone and other investment areas that continue to position Nicaragua in the list of best countries for foreign direct investment. We are fully convinced that through foreign and national investment, the Nicaraguan economy and trade will be boosted, as well as more jobs will continue to be generated. 

Our law firm differentiates itself by providing comprehensive investment advice, as our business lawyers work hand in hand with a team of administrators and accountants to provide you with commercial guidance on how to structure the operational, managerial and financial area of ​​your business, choose a strategic location, hire employees, among other vital aspects for an optimal administrative and accounting operation of your company. 

In addition, we will put at your disposal our wide network of contacts, who are entrepreneurs from various fields such as tourism, engineering, BPOs, education, and real estate investments. This will allow you to have a broader view of the market dynamics in which you will invest.  Corrales & Associates is not only a legal ally, but also an advisor with a business vision that watches over the commercial interests of those who trust its firm. 

Legal advisory services for investments in Nicaragua:

  • Legal assistance and protection of investment
  • Company Incorporation
  • Obtaining required permits and licenses to operate.
  • Structuring for tax incentives.
  • Advice on negotiations and General contract assistance.
Why hire Corrales y Asociados for the legal protection of your investments in Nicaragua? Sergio Corrales Partner of the Law Firm
Tax incentives for investment in the Free Zones sector in Nicaragua of the Firm Corrales Lawyers - Corrales Attorneys

Tax incentives for investment in the Free Zones field in Nicaragua

The Law of Industrial Export Free Zones (917) benefits investors with tax attractions that allow them to reduce operating costs of their companies. During the first 10 years of operation, you will be one hundred percent exempt from the payment of Income Tax, as well as municipal taxes, sales taxes and exception of customs duties.

Tax incentives for investment in the Tourism field in Nicaragua

By investing in the tourism industry in Nicaragua, the Law for the Promotion of Foreign Investments (Law 306) provides benefits such as free access to the purchase and sale of foreign currency free currency convertibility now available; ownership of the property related to their investment and equal treatment regarding the rights and means granted to Nicaraguan investors.

Another noteworthy incentive is the exception of income tax, value added tax, and property tax (Law of Tourist Incentives); In addition, the entry of merchandise into the national customs territory and the local purchase of the same will be allowed without the payment of all kinds of duties and taxes.

Tax incentives for investment in the Tourism sector in Nicaragua of the Firm Corrales Lawyers - Corrales Attorneys
Fiscal Incentives for Investment in the Forestry Sector in Nicaragua of the Corrales Lawyers - Corrales Attorneys Firm

Tax incentives for investment in the Forestry industry in Nicaragua

Law for the Conservation, Promotion and Sustainable Development of the Forestry sector (Law 462) benefits investors with tax incentives such as exemption from paying fifty percent of the Municipal Sales Tax and fifty percent on the profits derived from the exploitation; Exemption from Real Estate Tax; Deduction as an expense of 50% of the amount invested for IR purposes and exemption from import taxes on equipment and machinery for the second and third transformation in wood processing.

Do you have questions related to our legal advice services for investment in Nicaragua?

Welcome to our section of frequently asked questions about legal services aimed at natural individuals. If you cannot find an answer to your question, we invite you to fill in the contact form located in the next section.

1. What is the free zone regime?

It is a special regime of tax incentives for companies that do not trade within the country but that operate from Nicaragua importing their raw materials, creating their products and exporting them after they are finished. The purpose of these incentives is to promote employment in Nicaragua.

2. What are the tax benefits of a free zone regime?

The benefits are as follows: 

  • 100% Income Tax Exemption for a period of 10 years from the start of operations and 60% from year 11 onwards, if the 100% benefit is not extended for another 10 years. 
  • 100% exemption of taxes on imports of raw materials and machinery for its production processes of its products.
  • 100% exemption from export taxes on your products.
  • 100% exemption from Real Estate Tax on the properties where they operate.

3. What activities can be developed under a free zone regime?

The company that makes use of the benefits can be any company that does not sell its products in Nicaragua. Mainly the users of the free zone are companies with exports to the United States, BPOs and KPOs.

4. Regarding its operation, what kinds of free zone companies exist?

Companies can be incorporated as a user of free zones or as operators of free zones. The operating companies are those that have facilities approved within the regime to rent to companies that will work as users to export their products or services abroad.

5. What are the requirements to be authorized as a free zone company?

The requirements to be authorized as a user of free zones are:

  • Letter of presentation and application.
  • Presentation of the project.
  • Product (s): Description and technical specifications of the product (s) to be produced. 
  • Lease contract of the property where it will operate.
  • Copy of the Constitution of the Company.
  • Copy of the General Power of Administration.
  • Copy of identification of the legal representative.
  • Two bank reference letters and two business reference letters from the company’s partners.
  • Fill out the application form.
  • Present location plan and facility plans.
  • Cash receipt for a non-refundable value of US $ 300.00.
  • Environmental Permit or Administrative Authorization.
  • Letter of support for the project issued by the Mayor’s Office of the municipality where the company will be installed.
  • Certification and/or Proof of processing of the application for the Opening License in matters of Occupational Health and Safety.
  • Health License issued by the Ministry of Health – MINSA.
  • Favorable opinion of the General Directorate of Customs Services – DGSA.

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