Retirement in Nicaragua
How To Become A Resident

Citizens of United States, Canada, the European Union and many other countries don’t need a visa to enter Nicaragua. All you need is a passport that is valid for at least 6 months. You pay US$10 for the tourist card at immigration, which allows you to stay for up to 90 days as a tourist. That’s ample time to explore the country and find out if Nicaragua is the right choice for you.

If you seriously consider retirement in Nicaragua, you have several options for obtaining a residency permit. After your application is approved, you'll get a residence card similar to the identity card or "cedula" that the Nicaraguans carry.  

Believe me, cedula is a word you'll hear often when staying in Nicaragua, even for simple things like paying with a credit card instead of cash at the supermarket.

Retirement in Nicaragua: Residency Options

There are various types of residencies available in Nicaragua (e.g., foreign investors, business people, employees and students have their own type of residency permits). However, most people who plan to retire in Nicaragua (as opposed to working there) use one of the two standard ways to get a residency permit.  You claim that you are either retired or have "private income."

The first option is called the "Pensionado" program. To apply for it, you must be 45 years or older and be able to prove a steady monthly income from a state or company pension of at least US$600 (plus US$150 for each dependent family member).

Compared to other countries, this amount is still low (in Panama you need at least US$1,000 and in Belize, it’s twice as much). In the past (prior to 2009), you only needed a guaranteed income of $400 (plus $100 for each dependent). 

If you are not retired yet, you can apply for the "Rentista" status, i.e., people with private incomes. Again, the minimum age is 45 years. The minimum income amount is US$750 per month (plus US$150 for each dependent), and the money can come from investments, revenues, stocks, rents, annuities, or other sources of "guaranteed" private income. Income from a salary does not apply. 

C$ = Córdoba

Please note that some fees on this page are quoted in Córdoba (C$), Nicaraguan's local currency. You can check the official Córdoba - Dollar exchange rate at the  "Banco Central de Nicaragua" web site.

Important: once you are a Nicaraguan resident, you must get the government's permission to leave the country, the so-called "visa de salida." Depending on how often you want to travel, you have the choice between purchasing a one-time exit visa (C$200), or one that is valid for 3 months (C$400), 6 months (C$800) or one year (C$1600).

The one-time exit visa you can obtain directly at the airport when you leave. The other types of exit visas you can only get at the Immigration Office in Managua.

Residency Process and Fees

Should you hire a lawyer or apply for residency yourself? The answer depends on how well you speak the language, how much time you want to invest and whether or not you are easily frustrated. 

I have done it both ways, with and without a lawyer, and had greater success when I did it myself... BUT I had help from a local friend who knew how to navigate the Nicaraguan bureaucracy and knew the right people within the immigration office.

Here's a 1 minute video outlining the basic steps for getting residency:

You definitely need to inform yourself well about the requirements and the process. A fellow expat and friend of mine, Casey Callais, just published an in-depth guide about Getting Residency in Nicaragua. His guide comes highly recommended if and when you feel ready for your retirement in Nicaragua.

Tip: Most documents for the application process you need to get before moving to Nicaragua, namely

  • Birth certificate for you and your dependents
  • Police record (alternatively, you can obtain a police record from Interpol in Managua)
  • Marriage license
Retirement in Nicaragua: Immigration OfficeDonuts Stall at the Immigration Office in Managua. Helps You Survive Hours of Waiting. :-)

All documents except your birth certificate have to be less than 6 months old. Since May 2014 Nicaragua is part of the Hague Convention for legalization of public documents. If your country of origin is part of the Hague Convention as well, you only need to get the Hague Apostille for these documents.

If your country is not part of the Hague Convention (like Canada), the legalization process is a bit more complicated. Your documents must be authenticated by 2 levels of government, the appropriate authorities in your country and then either the nearest Nicaraguan consulate in your country or by your country's consulate in Managua (if there is one).

Calculate at least 4 to 6 weeks for the authentication process. Apostilles take less time, perhaps 1 to 2 weeks.

Fees

At the time of writing, the fees for the temporary residence card (valid for 1 year) are C$2,000 and for a permanent residence card (valid for 5 years) C$5,000. 

You'll also have costs for the certification and translation of documents. And since the application process typically lasts several months, be prepared to purchase extensions for your tourist visa for C$500 per 30 days, the so-called "prórroga".

If you enlist the help of a lawyer, expect to pay anything between US$300 and US$800 per person for his or her services.  

Retirement in Nicaragua: Benefits

What benefits do you get when you retire to Nicaragua? The main ones are:

  • You pay no taxes on foreign income.
  • You can import up to $20,000 worth of household goods duty free.
  • You can import one vehicle worth up to US$25,000 every four years and you will have no import tax or sales tax to pay. (If a vehicle is bought in Nicaragua, the tax exemption still applies.)

As a retiree, you cannot work in any industrial or commercial activity or hold a job paid in local currency. There are, however, exceptions, according to a discussion I had with an attorney. For example, if you want to open a business that benefits the country in some way (e.g., a hotel, tourist business), you would present your plan to the Ministry of Economy and Industry and ask for an exception to the rule.

If you plan to open a business for your retirement in Nicaragua, you should apply for a different type of visa, the so-called "Investor Visa."

Any foreign investor can apply for residency if they run a business, are forming a corporation and are going to invest a minimum of US$30,000 in Nicaragua in any sector (tourism, mining, education, real estate, and many more). 

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