The Official Gazette of Nicaragua has published the new Law of Incentives for Tourism Developments in Official Journal No. 141, aimed at promoting investment in tourism infrastructure through a package of fiscal and customs benefits. 


This new law seeks to drive the growth of infrastructure capable of attracting both domestic and international tourism. Benefited projects can include a wide range of developments such as hotels, accommodation centers, restaurants, amusement parks, zoos, theaters, museums, art galleries, and fair and craft centers. 


Creation of the Tourism Incentives Committee 


The new law establishes the creation of the Tourism Incentives Committee, which will evaluate and approve the submitted projects. This committee will be composed of representatives from the Ministry of Finance and Public Credit, the Nicaraguan Institute of Tourism, the General Revenue Directorate, and the General Customs Directorate. Additionally, representatives from local municipalities may be called upon depending on the project's location. 


With this new legislation, Nicaragua aims to establish itself as a premier tourist destination by providing a favorable environment for the development and expansion of the tourism industry. 


Benefits of the Law 


Approved projects by the Tourism Incentives Committee will be eligible for the following incentives: 


  • Income Tax Exemption: Projects will be exempt from this tax for up to ten years from the start of their operations. 
  • VAT and Other Tax Exemptions: Exemptions will apply to the local purchase of goods and services necessary for the construction and outfitting of tourism infrastructure, as well as the importation of construction materials, furniture, equipment, and accessories during the investment phase. 
  • Property Tax Exemption: Tourism developments will be exempt from property taxes for up to ten years. 


To qualify for these incentives, projects must meet a minimum investment of USD 300,000 or its equivalent in local currency. Small and medium-sized enterprises (SMEs) in the tourism sector can qualify with a minimum investment of USD 50,000.