Does the Nicaraguan government provide any incentives to retirees?
Nicaragua’s retirement laws provide some tax incentives for foreigners—copied after the retirees benefits offered to many in Costa Rica in the 1980’s. Under Decree No. 628, the ‘Law of Resident Pensioners and Retirees,’ you’re eligible for benefits if you are over 45 years old and have a monthly income of at least US$400 or the equivalent in another currency. (Add an additional US$100 for each dependent family member living with you in Nicaragua.) The benefits come mostly in the form of tax incentives. As a foreign retiree, you’re entitled to: (1) pay no taxes on any out-of-country earnings (2) bring into Nicaragua up to US$10,000 worth of household goods for your own home, duty-free (3) import one automobile for personal or general use and pay on it no import tax or protective tariff and sell it after five years, again exempt from consumer sales tax (4) import an additional vehicle every five years under the same duty exemptions.
