This guide explains visa options for business and investment in Nicaragua. It covers short-term travel, investor residency, and key entry rules. Use this information to plan a successful business trip.
Summary for Business Travelers and Investors
- Short Trips: Use the visa-free tourist entry for initial visits.
- Long-Term Stays: The Investor Residency program is the official path for investors. Hire a local lawyer to start the process.
- Regional Work: The CA-4 agreement allows easy travel between four Central American countries.
- Manage Risks: Understand the safety and political risks. Protect yourself and your assets.
- Get Local Help: Success in Nicaragua requires professional support from local legal and business experts.
Visa Options for Investors and Business People
Nicaragua provides three main entry options for business activities. Each option serves a different purpose for your trip.
| Visa Type | Primary Use | Main Requirement |
|---|---|---|
| Tourist Entry | Short trips for meetings, conferences, or research (up to 90 days). | Purchase a $10 Tourist Card on arrival. |
| Business Visa | Formal business activities without establishing residency. | Apply at a Nicaraguan embassy before travel. |
| Investor Residency | Long-term legal status for a major capital investment. | A minimum investment of $30,000 USD. |
Using a Tourist Entry for Business
You can use a standard tourist entry for short business trips. This option is common for initial meetings or market research. Citizens from the US, UK, Canada, Australia, and the EU can enter visa-free for up to 90 days. You must buy a Tourist Card for $10 USD in cash when you arrive.
Applying for a Formal Business Visa
A Business Visa is for more formal or extended business activities. You must get this visa before you travel. You apply at a Nicaraguan embassy or consulate. The application usually needs a letter of invitation from a company in Nicaragua. Plan to apply one to two months before your trip.
Securing an Investor Residency Visa
The Investor Residency program is for people who want to invest capital and live in Nicaragua long-term. This program grants legal residency.
- Investment Amount: You must invest at least $30,000 USD. The investment must be in an approved sector like tourism or agriculture.
- Application Process: The process requires a business plan and proof of your investment. You should hire a local lawyer who specializes in immigration. A lawyer will help you with the application.
Regional Travel for Business: The CA-4 Agreement
The Central America Border Control Agreement (CA-4) helps business travelers work in the region. The agreement includes Nicaragua, El Salvador, Guatemala, and Honduras.
With a single entry stamp, you can travel between these four countries for up to 90 days. This simplifies regional business management and supply chain operations.
Important Note: As of August 2024, citizens of the United Kingdom need a visa to enter Honduras.
Documents Required for Entry
Every business traveler needs the following documents to enter Nicaragua:
- A passport with at least six months of validity.
- A return or onward airline ticket.
- Proof of enough money to fund your stay.
- Business letters or contacts in Nicaragua (recommended).
- $10 USD cash for the Tourist Card fee.
- A $32 USD departure tax is also required. This tax is often part of your airline ticket price.
Business Establishment Process
Once you secure the correct visa, you can begin establishing your company. This process involves several key legal and financial steps, including company formation, opening a corporate bank account, and performing thorough due diligence on any potential investment. For a detailed guide on these procedures, you can find more information about the process of establishing a business in Nicaragua. A local lawyer is essential to manage these steps correctly.
Maintaining Your Investment and Residency
Securing your investor visa is not the final step. You must maintain your legal status and investment.
Renewing Your Investor Residency
Your initial Investor Residency permit is valid for five years. To maintain it, you must follow specific rules.
- Renewal Process: You can renew your residency permit after the initial five-year period if you continue to meet the program requirements, including maintaining your investment.
- Local ID (Cédula): A key condition is that you must be physically present in Nicaragua at least once every six months to renew your local residency ID card (Cédula). Failure to do this can put your residency status at risk.
Key Risks and Safety Information
You must understand the local risks to protect yourself and your investments.
Personal and Asset Security
Nicaragua’s political situation can create risks. Violent crime exists in cities like Managua. Foreign investors have reported issues with the arbitrary enforcement of laws, including the confiscation of private assets.
- For Personal Safety: Do not display expensive items. Be aware of your surroundings. Stay away from areas known for crime.
- For Asset Protection: You must perform complete due diligence before investing. Hire local legal professionals to protect your capital.
- Be Discreet: Do not discuss local politics. Do not join any political activities.
Local Transportation
Road conditions and public transport can be difficult.
- Use Private Cars: Do not use public taxis. They can be unsafe and unreliable. For business travel, hire a private car from a known company or through your hotel.
- Driving: Roads outside of cities are often in poor condition and unlit. Avoid driving after dark for your safety.
Frequently Asked Questions (FAQ)
What is the minimum investment for the Nicaragua Investor Residency Visa?
The minimum investment required is $30,000 USD. This amount can be directed into real estate, a new business, or a government-approved project, particularly in sectors like agriculture or tourism. The investment must stimulate economic activity in Nicaragua.
Can I travel to neighboring countries with a Nicaraguan entry stamp?
Yes. A Nicaraguan entry stamp grants you access to the CA-4 border agreement region, allowing land travel between Nicaragua, El Salvador, Guatemala, and Honduras for up to 90 days total. This period begins at your first entry into any of the four countries and does not reset when crossing borders within the CA-4 zone.
What are the main legal risks for foreign investors in Nicaragua?
The key legal risks come from Nicaragua’s unstable political climate. Foreign investors may face arbitrary enforcement of regulations, including unexpected tax demands and potential property seizures. It’s essential to conduct thorough due diligence and consult with trusted local legal professionals before investing.
How long does the Investor Residency Visa application process take?
The Investor Residency Visa process typically takes between three and eight months. The exact timeframe depends on the nature of your investment and how complete and accurate your submitted documents are.
Do I need a local lawyer to apply for an Investor Residency Visa?
Hiring a local immigration lawyer is highly recommended, although not legally required. The visa process is complex and document-heavy, and a local expert ensures correct preparation, translation, and submission, helping to avoid delays and rejections.
What are the main tax rules for U.S. citizens living in Nicaragua?
U.S. citizens must file taxes in both the U.S. and Nicaragua. The U.S. taxes all worldwide income regardless of residence, while Nicaragua only taxes income earned within its borders. U.S. citizens can often use the Foreign Tax Credit to reduce double taxation on the same income.
