Can Americans buy property in Nicaragua?

Authored by the expert who managed and guided the team behind the Nicaragua Property Pack

Everything you need to know before buying real estate is included in our Nicaragua Property Pack

Who is the author of this content?

THELATINVESTOR

A team specialized in real estate investing in Latin American countries (Mexico, Nicaragua, Costa Rica, Panama, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Nicaragua. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At TheLatinvestor, we explore the Nicaraguan real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Managua, Granada, and San Juan del Sur. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can Americans legally buy property in Nicaragua or are there restrictions compared to locals?

Americans can legally buy property in Nicaragua with the same ownership rights as Nicaraguan citizens, with only a few specific restrictions.

The main limitation applies to border areas—foreigners cannot purchase property within five kilometers of Nicaragua's international borders with Costa Rica and Honduras without obtaining a special government waiver. For properties located between five and fifteen kilometers from these borders, a waiver permit is required, which typically takes one to two years to process.

Beyond these geographic restrictions, Americans enjoy full property ownership rights in Nicaragua. You can hold title in your own name, sell the property freely, and pass it on to heirs without additional restrictions that many other Central American countries impose on foreign buyers.

The Nicaraguan constitution actually protects foreign property rights, making it one of the more foreigner-friendly countries in the region for real estate investment. This legal framework has been stable since the 1990s, providing confidence for American buyers.

It's something we develop in our Nicaragua property pack.

What types of properties can Americans purchase and are there location-based limitations?

Americans can purchase virtually all types of real estate in Nicaragua, including residential homes, condominiums, commercial properties, and raw land.

For beachfront properties, the situation is more complex. Beachfront land within 50 meters of the high tide mark is classified as "Municipality land" under Nicaraguan law. While some titled beachfront properties exist and can be owned outright by foreigners, most beachfront access comes through concession agreements with local municipalities.

Concession properties require either setting up a Nicaraguan corporation or obtaining a long-term lease from the municipality. These concessions can last 20-50 years and are renewable, but they don't provide the same security as full title ownership.

Commercial properties, including office buildings, retail spaces, and industrial facilities, are fully available to American buyers with no additional restrictions beyond the border limitations mentioned earlier.

Rural agricultural land can also be purchased by Americans, making Nicaragua attractive for those interested in farming, cattle ranching, or agritourism ventures.

Do Americans need Nicaraguan residency or a specific visa to buy property?

No residency or visa requirements exist for Americans to buy and own property in Nicaragua.

You can purchase property as a tourist on a standard 90-day entry stamp, and ownership doesn't require maintaining any particular immigration status in Nicaragua. This makes the country particularly attractive for investment purposes or future retirement planning.

However, property ownership can actually help facilitate residency applications if you later decide to live in Nicaragua permanently. The investor visa program accepts real estate investments as qualifying investments, typically requiring a minimum investment of $30,000-$50,000.

Pensioner and rentista visa programs are also available for Americans who want to establish residency, with property ownership often supporting these applications by demonstrating ties to the country.

As of June 2025, many Americans use property ownership as a stepping stone to obtaining legal residency while maintaining their primary residence in the United States.

Can Americans complete property purchases remotely or must they be physically present?

Americans can complete entire property purchases in Nicaragua without being physically present in the country.

The remote purchase process uses a Power of Attorney (POA) document that must be properly prepared in the United States. This POA must be signed, notarized, and apostilled in your home state, then sent to Nicaragua where your designated representative can sign all closing documents on your behalf.

The apostille process typically takes 1-2 weeks through your state's Secretary of State office, and the POA must specifically grant authority to purchase real estate, transfer funds, and register the property in your name.

Your attorney in Nicaragua will handle the actual closing process, including signing the escritura (deed), transferring funds, and ensuring proper registration at the Public Registry. Many American buyers complete their purchases entirely from the United States, only visiting the property after they own it.

Remote purchases have become increasingly common, especially since 2020, with digital communication making it easier to coordinate with local attorneys and view properties through virtual tours.

What are the step-by-step procedures and required documents for American buyers?

The property purchase process in Nicaragua follows a structured sequence that typically takes 30-90 days to complete.

First, hire a reputable local attorney who specializes in real estate transactions. Your lawyer will conduct due diligence, including verifying the property title chain, ensuring no liens exist (libertad de gravamen), and confirming the seller is current on property taxes (solvencia municipal).

Next, negotiate and sign a purchase contract outlining price, terms, and closing timeline. A deposit of 5-10% is typically required at this stage, held in escrow by your attorney or the seller's attorney.

During the due diligence period, your attorney will obtain and review all necessary property documents, including the current deed, property survey, tax records, and municipal certificates. This process usually takes 2-4 weeks.

At closing, you'll sign the escritura (official deed) either in person or through your Power of Attorney representative. The full purchase price is transferred, typically through wire transfer or bank draft, and you receive an official receipt.

Required documents include:- Valid U.S. passport- Power of Attorney (if buying remotely)- Proof of funds for the purchase- Bank statements and wire transfer confirmations- Notarized and apostilled documents for remote purchasesThe final step involves registering the property in your name at the Public Registry, which can take 6-12 months but doesn't affect your ownership rights, which begin at closing.

Is hiring a local lawyer mandatory for American buyers?

While not legally required, hiring a local attorney who specializes in real estate is strongly recommended and considered essential for protecting your investment.

Nicaraguan property law is complex, and many properties have complicated title histories, especially those that were affected by government expropriations in the 1980s. A qualified attorney can identify potential title issues, verify proper ownership chains, and ensure all legal requirements are met.

Property disputes are unfortunately common in Nicaragua, often involving multiple claimants to the same property or unclear title documentation. Professional legal representation helps prevent these issues and provides recourse if problems arise after closing.

Attorney fees typically range from $1,000-$3,000 for a standard residential purchase, representing excellent value for the protection provided. Many attorneys also offer ongoing services for property management, tax compliance, and future sale assistance.

It's something we develop in our Nicaragua property pack.

What are the tax implications for American property owners in Nicaragua?

American property owners in Nicaragua face several tax obligations that differ from those of local residents.

Annual property tax is 1% of 80% of the assessed property value, which can be based on cadastral records, self-declared value, or municipal estimates. Most municipalities use conservative assessments, keeping property taxes relatively low compared to U.S. standards.

Capital gains tax applies when selling property, with profits taxed as ordinary income. For non-resident Americans, a 20% definitive withholding tax applies to Nicaraguan-source income, including rental income and capital gains from property sales.

Nicaragua has no tax treaty with the United States, meaning you may face double taxation on the same income. However, U.S. tax law provides foreign tax credits that can offset some Nicaraguan taxes paid.

Inheritance tax applies at rates of 1% up to $50,000, 2% up to $100,000, and 3% over $100,000. Estate planning with both U.S. and Nicaraguan attorneys can help minimize these taxes.

Rental income requires quarterly tax filings in Nicaragua, and many American owners use local property management companies to handle tax compliance and maximize deductions.

Can Americans get mortgages in Nicaragua and what are the typical terms?

Mortgage financing for Americans in Nicaragua is limited but available through select banks and alternative financing options.

Traditional bank financing is rare for foreigners, especially in popular expat areas like San Juan del Sur and the Pacific Coast. However, some banks including Banpro and Banco Lafise Bancentro offer mortgages to foreigners with strong credit histories and documented income.

When available, mortgage terms typically include 20% down payments, interest rates between 8.5% and 9.5%, and loan terms of 10-20 years. Banks require extensive documentation including passport, birth certificate, U.S. credit report, bank statements, proof of income, and complete property documentation.

Owner financing has become increasingly popular, with sellers offering direct financing arrangements. These typically require 50% down payments with the remaining balance paid over 12-24 months at competitive interest rates.

Many American buyers choose to purchase with cash, either from savings or by securing financing against U.S. properties. This approach speeds the buying process and often results in better purchase prices.

What are the best areas in Nicaragua for Americans looking to settle long-term?

Americans settling in Nicaragua typically gravitate toward areas with established expat communities, good infrastructure, and reasonable safety standards.Granada stands out as the top choice for long-term American residents. This colonial city offers excellent healthcare, reliable internet, a strong expat community, and cultural amenities. The cost of living is reasonable, with many Americans living comfortably on $1,500-$2,500 monthly.San Juan del Sur attracts Americans seeking a beach lifestyle with modern conveniences. The town has grown significantly to accommodate foreign residents, offering international restaurants, reliable utilities, and active expat social networks. However, costs are higher than inland locations.Managua, while lacking colonial charm, provides the best access to modern amenities, international flights, and business opportunities. Many Americans involved in business or requiring frequent travel prefer the capital's convenience and infrastructure.León offers an authentic Nicaraguan experience with a growing expat presence and significantly lower costs than Granada or San Juan del Sur. The city has excellent colonial architecture and is popular with younger American expats and remote workers.The Pacific Coast region, including areas around Tola and Popoyo, attracts Americans seeking rural beach living with investment potential. Infrastructure is developing rapidly to support the growing foreign resident population.

Which areas offer the best investment potential based on rental yields and appreciation?

Granada consistently delivers the strongest rental yields for American investors, particularly in the short-term rental market serving international tourists.

The colonial city benefits from year-round tourism, with well-positioned properties earning 8-12% annual rental yields. Properties near the central plaza and lake shore command premium rents, while renovation projects in the historic center often appreciate 5-8% annually.

San Juan del Sur offers excellent seasonal rental income, especially during peak tourist months from December through April. Beachfront and ocean-view properties can generate 10-15% annual yields, though income is more seasonal than Granada.

The broader Pacific Coast region shows strong appreciation potential as infrastructure development continues. Areas around Tola, Popoyo, and Rivas are experiencing increased interest from both investors and expat residents, driving property values higher.

Managua provides steady rental income from local professionals and expatriate workers, typically yielding 6-8% annually with less seasonal variation than tourist-dependent markets.

As of June 2025, tourism recovery has strengthened rental markets across Nicaragua, with many American investors reporting occupancy rates and rental income exceeding pre-2020 levels.

What are average property prices in key areas like Granada, San Juan del Sur, and Managua?

Area	Property Type	Price Range (USD)	Notes
Granada	Colonial homes	$45,000 - $600,000	Historic center, lake proximity affects pricing
Granada	Modern condos	$80,000 - $250,000	New developments with amenities
San Juan del Sur	Beachfront villas	$200,000 - $1,000,000+	Ocean views command premium prices
San Juan del Sur	Town condos	$100,000 - $300,000	Walking distance to beach and restaurants
Managua	Modern apartments	$80,000 - $200,000	Secure complexes in good neighborhoods
Managua	Single-family homes	$120,000 - $500,000	Varies significantly by neighborhood
Pacific Coast	Raw land	$50,000 - $200,000	Per hectare, development potential
Pacific Coast	Beach houses	$150,000 - $800,000	Proximity to surf breaks affects pricing

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Nicaragua versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are the most common mistakes Americans make when buying property in Nicaragua?

Inadequate due diligence represents the most serious mistake American buyers make in Nicaragua, often leading to costly disputes or invalid purchases.

Many buyers fail to properly verify property title history, particularly important given the complex land reforms of the 1980s that affected thousands of properties. Some properties have multiple claimants or unclear ownership chains that only thorough investigation can reveal.

Purchasing near international borders without understanding waiver requirements has caught many Americans off guard. Properties within five kilometers of Costa Rica or Honduras borders require special government approval that can take years to obtain.

Choosing inadequate legal representation or attempting to navigate the purchase process without local expertise frequently results in problems. Some buyers use general practice attorneys rather than real estate specialists, missing crucial title issues or procedural requirements.

Owner financing arrangements without proper legal structure create significant risks. Some sellers retain title until full payment is received, leaving buyers vulnerable if the seller defaults on their obligations or faces legal issues.

Remote purchase complications often arise from improperly prepared Power of Attorney documents. Failure to obtain proper notarization and apostille certification can delay or invalidate transactions, requiring expensive corrections.

It's something we develop in our Nicaragua property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Nicaragua Realtors - How to Buy Property Guide
2. Aparthotel - Foreign Property Ownership
3. Reliance Realty - Complete Property Guide
4. LSM Resort - Property Buying Process
5. U.S. Embassy Nicaragua - Property Guide
6. Life in Nicaragua - Remote Purchasing
7. Aurora Beachfront - Property Steps
8. Invest Nicaragua - Real Estate Financing
9. Nomad Capitalist - Nicaragua Tax Guide
10. International Living - Living in Nicaragua