17/01/2026
Buying a property in Nicaragua.
Real Estate transactions require an understanding of the various steps and nuances that both the seller and buyer must follow to ensure a smooth transaction and conveyance of the property. Based on twenty-eight years of experience, I would like to share some guidance.
It is mandatory to know from the beginning that the process of buying a Real Estate property in Nicaragua is different from your country of origin.
The most important step is to be certain that the property has been registered at the Public Registry of properties of the department (province) where the property is located, in the name of the seller.
Also, the property must be registered at the municipality, local government, or city where the property is located. It is mandatory to check that the annual property taxes have been paid; this tax is called “Impuesto de Bienes Inmuebles or IBI”. For that purpose, the municipality provides a receipt called “Solvencia Municipal” that confirms that the annual payments have been made. Property tax is charged and paid one year behind. This means that the 2025 property tax, or IBI, will be paid in 2026, and so on.
Another step is to confirm that the property is duly registered at the cadastral department of the government. This office confirms that the property is in the specific area described, and the area is according to its declaration on the title. A cadastral certificate has to be issued in any transaction.
The cadastral department can request an updated survey from a topographer, which has to be approved by the same cadastral department. When the sale is for just a part of the property – a parcel split when it is imperative to subdivide a lot - and a new survey must be approved, a new registration number will be assigned to the new property.
It is mandatory to verify the property’s history to confirm the origin; a history certificate since 1979 is the best option.
A no-liens certificate will certify that the property has no liens or encumbrances. It is mandatory to receive an updated certification at the time of the due diligence.
Those documents should be obtained by the seller, who is the only person with the legal right to apply for them. A legal representative – a lawyer appointed by the seller through a limited power of attorney – can process and obtain those documents.
The buyer must receive legal assistance from an independent professional with a high ethical standard.
Nowadays, it is very common that one of the parties is not living in Nicaragua or is not in the country at the moment of the closing. In that event, a power of attorney granted abroad, duly legalized – Apostilled – will be mandatory.
Be aware that Nicaraguan law only accepts contracts written in Spanish and with the formalities the law states, prepared by a Public Notary on a special Nicaraguan legal paper; any agreement in English or any other language is not legal. Sales agreements provided in English by realtors are private contracts that work as a letter of intention, which describes all the details of the transaction. Be aware of agreeing on the payment method in advance, especially if the money will be paid from a foreign bank, take into consideration the time that the wire transfer will take, bank commission, etc.
Promise of sale. Sometimes when there is an agreement but for some reason the property sale cannot be concluded until the future payments are completed, parties can sign a contract before a public notary called a “Promesa de Venta” or promise of sale agreement which is a contract where the seller commits to selling a property to a buyer at a specific price, the buyer agrees to purchase it under those terms. A down payment is required. My advice is to state in that contract what would happen if, for any reason, the sale cannot be completed; the consequences depend on whether the buyer or seller is unable to fulfill the contract.
The final and longer step is the registration (recording) the property in the name of the buyer; this step could take several months, depending on the area and kind of property. For that purpose, the person in charge of the registration has to obtain:
1.Cadastral certificate.
2.Assessment of the property, from the tax department or government.
3.Submit the title or Deed at the public registry of the property.
4.Change of owner at the municipality or local government.
It is not mandatory to be a resident in Nicaragua to buy Real Estate property.
This kind of purchase does not grant the right to apply for residency as foreign investors, unless the property is used for business purposes approved by the Ministry of Development, Commerce and Industry, according to the Foreign Investors law of February 2025.
As part of the sale process, the government of Nicaragua charges a transfer tax, which is paid by the seller, who is the one that receive an extraordinary income. The transfer tax is based on the valuation or assessment that the government recognizes for the property:
•from US$1 to $50,000, the tax is 1%;
•from $50,001 to $100,000.00 the tax is 2%;
•from $100,001 to $200,000.00 the tax is 3%;
•from $200,001 to $300,000.00 the tax is 4%;
•from $300,001 to $400,000.00 the tax is 5%;
•from $400,001 to $500,000.00 the tax is 6%;
•From $500,001 and up, the tax is 7%.
Also, a registration fee must be paid by the buyer and is based on the assessment done by the tax department, with a ceiling of C$30,000 Cordobas.
Finally, in the San Juan del Sur and Tola Municipalities, there is an extraordinary and additional municipal tax of 1% for the transaction, which must also be paid by the seller.
Those taxes could be negotiable between sellers and buyers. It means that the buyer can agree to pay all the costs and taxes.
My advice is that when a property is registered in Nicaragua, it is necessary to prepare a will and notify the heirs about it, including the contact information of the lawyer who prepared the will. In Nicaragua a will is registered only at the moment of the owner’s death. Therefore, there is no information in the national or local registry of wills where someone can obtain sensitive information. This comment is based on sad experiences.
To know more about wills, read this:
https://www.tifferlawfirm.com/.../last-will-testament-for...
Finally, this is a dynamic business; rules can change.
We are at your service to conduct these kinds of transactions. –
For further information please contact us at: [email protected]
