Frequently Asked Questions

There are a number of documents required when buying a property in Nicaragua, including:

1. A valid passport

2. A copy of the deed of sale

3. A certificate of occupancy

4. A copy of the title deed

5. A copy of the tax declaration

6. A copy of the municipal registration

7. A copy of the mortgage contract

8. A copy of the inspection certificate

9. A copy of the certificate of non-liability for taxes

10. A copy of the cadastral certificate

1. Identify a qualified Real Estate Agency in San Juan del Sur –Horizonte Nica Real Estate.

Tap into and discover/interview a qualified and knowledgeable Real Estate Agent, Broker and the local business owner network here in San Juan del Sur who are happy to assist you in your property search. Our agency also offers an Astrology reading to assist focus & decision making on what you really want. Do your Google research and obtain referrals to ensure you are working with a Real Estate Agent who will go above and beyond, not only before and during the purchase process but also after your purchase to help with your transition as a new property owner in Nicaragua.

2. Visit Nicaragua

The very best way to discover the inventory of available properties is to travel to Nicaragua. The international Airport in Managua has a wide arrange of connections and is an excellent hub for future travels to other Central America destinations. We can assist with any transportation needs you may have and can arrange private transportation for you. In some cases you can actually rent one of the properties you are interested in.

3. Submit an Offer

The presentation of the offer for the purchase of a property begins with an additional first deposit of $500 USD for a building lot and $1000 USD for a home. This deposit is deductible from the purchase price and serves only as a reservation deposit to reserve and hold the promotion of the property by the owner and our agency. This deposit is 100% refundable in case of non-acceptance of the offer by the seller.
The contract will be considered null and void; which leads to the full refund of the deposit; If the title is not transferable for any reason that prevents its registration in the Buyer’s name. In this case, upon discovery of the issue preventing title transfer and registration, all funds paid will be returned in full to the Buyer; (Cf. Extract of Law No. 822).

4. Sign a Private Sales Agreement

Once your price has been negotiated and granted, your property has been defined, and your payment method established the buyer and seller will execute a Private Sales Agreement (Price, terms, conditions, and contingencies of the purchase). This document can be signed digitally and does not require either party’s physical presence in Nicaragua for execution. 

5. Choose a Lawyer

Horizonte Nica has established relationships with a network of Nicaraguan Lawyers. It is wise to also review any legal documents with your own trusted personal Lawyer in your own home country. We are willing to work with whatever legal representation you may have.

6. Make a 10% deposit

A deposit equal to 10% will be made upon signature of the Private Sales Agreement document. Those amounts are refundable only if Title is not transferable for any reason, preventing it from being registered in the name of the Buyer. In this case, upon discovery of the issue preventing transfer and registration of title all funds paid will be returned in full to the Buyer; (Cf. Extract of law No. 822).

7. Closing

8. Register the Property

9. Complete Property Registrati

Understanding Fees During Property Purchase in Nicaragua

Obtaining a property loan in Nicaragua as a foreigner can be challenging. While technically possible, eligibility criteria and requirements vary significantly across lenders and loan terms.

Generally, securing a mortgage requires a valid residence permit, proof of stable income, and meeting specific bank criteria. You might explore options with institutions like BAC, Lafise Bancentro, or Banpro, but be prepared for interest rates ranging from 11% to 15% for a 20-year term. Considering alternative financing avenues may be a more effective strategy for foreign property buyers in Nicaragua.

Understanding Nicaraguan Culture for Successful Negotiations:

• Building Relationships: Nicaragua fosters a collectivist culture where community and group harmony are paramount. Building trust and personal connections are key to successful negotiation. Engage in genuine, friendly conversations, showing genuine interest in individuals and their families
• Respecting Hierarchy: Demonstrate deference and respect for authority figures by using appropriate titles and acknowledging seniority. This can positively influence the negotiation process.
• Time and Communication: While punctuality is valued, be prepared for some flexibility in meeting times. Non-verbal communication is crucial. Maintain eye contact, use appropriate gestures, and be mindful of non-verbal cues to enhance communication and rapport.
• Politeness Matters: Maintain a courteous and polite demeanor throughout the negotiation. Use formal language and express appreciation for the other party’s contributions.

By understanding and respecting these cultural aspects, you can significantly increase your chances of achieving successful outcomes in negotiations with individuals from Nicaragua.

Horizonte Nica: Your One-Stop-Shop for Real Estate and Beyond.

We offer a comprehensive range of services to streamline your experience in Nicaragua:

• Real Estate: Buying, selling, and long/short-term rentals.
• Business Consulting: Property taxes, business and vehicle registration.
• Administrative Support: Property registration and personal assistance.
• Language Assistance: Translation services to bridge communication gaps.

The schools in San Juan del Sur offer a variety of options for residents and expats, catering to different needs and budgets. Here’s a summary:

Public Schools:

• Limited English immersion: Public schools primarily teach in Spanish, with limited English language instruction.
• Cost-effective option: Public schools are a very affordable option.
• Varied quality: The quality and resources of public schools can vary, so it’s recommended to research specific schools and consider factors like location, facilities, and student-teacher ratios.

Private Schools:

• English immersion options: Many private schools offer bilingual education or English immersion programs, making them attractive options for expatriates and families seeking English-language instruction.
• Higher cost: Private schools come with significantly higher tuition fees compared to public schools.

Here are some specific schools in San Juan del Sur:

• Public: San Francisco De Asis School
• Private:
  
  • San Juan del Sur Day School (Pre-K-12, internationally accredited, growing high school)
  • Escuela Adelante (bilingual school, English and Spanish, offering preschool and primary education)

Registering a vehicle in Nicaragua as an expat can be somewhat bureaucratic, but it’s generally manageable with proper planning and assistance.

Here are the key steps involved:

1. Obtain an Escritura: If you’re purchasing a new vehicle, you’ll need an Escritura, a legal document that transfers ownership to you. If you’re importing a vehicle, you’ll need to have it registered in your name.
2. Pay Taxes: You’ll need to pay various taxes, including import duties, sales tax, and road tax.
3. Obtain Insurance: Vehicle insurance is mandatory in Nicaragua.
4. Get a Safety Inspection: Your vehicle will need to pass a safety inspection.
5. Register at the Police Station: Visit the local police station to register your vehicle and obtain your license plates.

While the process can be time-consuming, it’s generally not overly complex. It’s recommended to seek assistance from a local agent or lawyer who is familiar with the process and can help you navigate the paperwork and procedures. Additionally, having all the necessary documents ready in advance can streamline the process.

It’s important to note that specific requirements and fees may vary. It’s always best to consult with local authorities or a trusted advisor for the most up-to-date information.

Navigating Vehicle Ownership in Nicaragua as an Expat

While Nicaraguan law states that only residents can register vehicles, there are practical ways for expats to own and operate a vehicle in the country. Here’s a comprehensive guide to help you navigate the process:

Purchasing a Vehicle:

• Used Vehicles: You can purchase a used vehicle from a private seller or a dealership. A “carta de venta” or “escritura” will transfer ownership to you, regardless of residency status.
• New Vehicles: Buying a new vehicle requires a Nicaraguan resident to register it in their name. You can work with a friend or lawyer who is a resident to purchase the vehicle on your behalf.

Registration Process:

• Escritura: Obtain an Escritura, a legal document transferring ownership.
• Taxes: Pay import duties, sales tax, and road tax.
• Insurance: Obtain mandatory vehicle insurance.
• Safety Inspection: Pass a safety inspection.
• Registration: Register the vehicle at the local police station and obtain license plates.

Common Misconceptions:

• Residency Requirement: While residency is technically required for new vehicle registration, there are workarounds involving a local representative.
• Ownership Transfer: The Escritura transfers ownership, regardless of residency.
• Driving with Foreign Registration: Driving a vehicle registered in someone else’s name can raise questions and potential risks.

Risks and Considerations:

• Impoundment: If caught driving a vehicle not registered in your name, it could be impounded.
• Insurance: Ensure proper insurance coverage in your name or the registered owner’s name.
• Corporate Ownership: Consider forming a Nicaraguan corporation to own the vehicle, but be aware of associated costs and legal obligations.

Recommendations:

• Professional Assistance: Consult with a local agent or lawyer experienced in vehicle registration for expats.
• Due Diligence: Thoroughly research the vehicle’s history and condition before purchase.
• Insurance: Obtain comprehensive insurance coverage to protect your investment.
• Consider Alternatives: Explore options like renting a vehicle or using public transportation if long-term ownership isn’t feasible.

While the allure of driving your own vehicle in Nicaragua can be tempting, there are significant challenges and limitations to consider before importing your car or truck.

Temporary Permits and Border Crossings:

• Short-Term Stays: Foreign vehicles are typically granted a 30-day transit permit, which can be extended once for an additional 30 days.
• Complex Border Crossings: Re-entering Nicaragua every 60 days involves a lengthy and bureaucratic process, including import/export permits, vehicle fumigation, and insurance purchases.

Finding Parts and Mechanics:

• Limited Availability: Finding replacement parts for foreign vehicles in Nicaragua can be extremely difficult, as many models are not sold locally.
• Specialized Mechanics: Locating mechanics familiar with your specific vehicle type may also be challenging.

Registration Challenges for Non-Residents:

• Limited Options: While it’s possible to purchase a vehicle and register it in the previous owner’s name, this can involve additional complexities and potential risks.
• Corporate Ownership: Forming a Nicaraguan corporation is another option but requires significant investment and ongoing maintenance.

Alternatives to Consider:

• Purchase Locally: Consider buying a vehicle in Nicaragua, as this offers greater flexibility and avoids the complexities of importation.
• Rent a Vehicle: For shorter stays or specific needs, renting a vehicle can be a convenient option.
• Utilize Public Transportation: Nicaragua’s public transportation system, while not as extensive as in some countries, can be a viable option for getting around.

Conclusion:

Before making the decision to import your vehicle, carefully weigh the potential challenges and costs against the benefits. While it’s possible to navigate the process, it’s often more practical and less stressful to explore alternative options like purchasing locally or renting a vehicle.

Yes, it is possible for foreigners without residency to open a bank account in Nicaragua. While there may be additional requirements or documentation needed compared to residents, it’s generally feasible.

Here are some common steps involved:

1. Choose a Bank: Select a bank that offers services to foreigners. Popular options include Banco LAFISE, Banco Promerica, and Banco Mercantil.
2. Gather Required Documents: Typically, you’ll need to provide:
   • Passport
   • Proof of address (e.g., rental agreement, utility bill)
   • Source of income documentation (e.g., employment letter, pension statement)
3. Visit the Bank: Schedule an appointment with the bank to open the account. Be prepared to provide the necessary documents and answer questions about your financial situation.

Additional Tips:

• Learn Spanish: While some banks offer English-speaking services, knowing basic Spanish can be helpful.
• Research Fees: Compare fees and services offered by different banks to find the best option for your needs.
• Consider a Local Representative: If you have difficulty meeting the requirements, consider appointing a local representative to assist you.

It’s important to note that specific requirements may vary depending on the bank and your individual circumstances. It’s always advisable to contact the bank directly or consult with a local financial advisor for the most accurate and up-to-date information.