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
Yes, foreigners can legally own and rent out residential property in Nicaragua in 2026, though certain locations near borders and coasts come with extra restrictions you need to know about.
This guide breaks down everything from rental yields and vacancy rates to short-term rental regulations and the neighborhoods where landlords see the best returns.
We constantly update this blog post to reflect the latest legal changes, market data, and on-the-ground realities in Nicaragua.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Nicaragua.
Insights
- Nicaragua's gross rental yields range from 6% to 7.5% nationwide in 2026, but properties outside city centers consistently outperform center locations by roughly 1.5 percentage points.
- Short-term rental occupancy in Nicaragua's tourist hubs like Granada and San Juan del Sur hovers around 30% to 33%, meaning you need strong pricing strategy to make STRs profitable.
- The 2025 border territory law (Ley 1258) creates a 15-kilometer no-go zone from land borders where foreign ownership rights face significant legal uncertainty.
- San Juan del Sur commands nightly rates around $160 to $180, nearly double Granada's $90 to $110 average, but both markets show similar low occupancy patterns.
- Non-resident landlords in Nicaragua must register with the tax authority (DGI) to legally collect rental income, even if managing the property entirely from abroad.
- Furnished rentals in expat-heavy areas like Managua's Santo Domingo or Granada's historic center can command 15% to 25% higher rents than unfurnished equivalents.
- Nicaragua's municipal property tax (IBI) is based on cadastral values that often sit far below market prices, making annual tax bills surprisingly low at $60 to $420 per year for most residential units.
- Reliable water pressure and backup power systems are the top rent multipliers in Nicaragua because utility interruptions remain common outside premium neighborhoods.
Can I legally rent out a property in Nicaragua as a foreigner right now?
Can a foreigner own-and-rent a residential property in Nicaragua in 2026?
As of early 2026, foreigners can legally own and rent out residential property in Nicaragua under the country's investment laws (Ley 1240 and the earlier Ley 344), which explicitly support foreign investment and ownership without requiring local partners or special corporate structures.
Most foreign investors in Nicaragua hold property directly in their personal name or through a simple Nicaraguan corporation (sociedad anónima), with the choice depending mainly on liability preferences and estate planning considerations.
However, the most important restriction is not about your nationality but about location: the 2025 border territory law (Ley 1258) creates a 15-kilometer zone from any land border where the state has strong control language, and the coastal development law (Ley 690) treats parts of beachfront and lakefront areas as public domain with restricted private rights.
If you're not a local, you might want to read our guide to foreign property ownership in Nicaragua.
Do I need residency to rent out in Nicaragua right now?
You do not need Nicaraguan residency to own or rent out property, and many foreign landlords successfully operate their Nicaragua rentals while living abroad full-time.
That said, Nicaragua's tax authority (DGI) explicitly states that non-residents earning Nicaraguan-source income must register with the tax administration, which means you will need a local tax identification number (RUC) to be fully compliant.
A local bank account is not legally required, but it makes operations much easier since many tenants pay in cash or local transfers, and you will need to cover local expenses like repairs, utilities during vacancy, and municipal taxes.
Managing a Nicaragua rental remotely is entirely feasible if you hire a local property manager or have a trusted representative to handle keys, tenant communication, maintenance, and rent collection on your behalf.
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What rental strategy makes the most money in Nicaragua in 2026?
Is long-term renting more profitable than short-term in Nicaragua in 2026?
As of early 2026, long-term renting tends to be the steadier and often more profitable choice in Managua where demand comes from jobs, embassies, NGOs, and universities, while short-term can earn more in tourist areas like Granada and San Juan del Sur during peak months but with much lumpier income.
For a comparable two-bedroom property, a well-managed long-term rental in Managua might gross around $4,800 to $6,000 per year (roughly 175,000 to 220,000 córdobas or 4,400 to 5,500 euros), while a well-managed short-term rental in San Juan del Sur could gross $8,000 to $12,000 per year but with significantly higher operating costs and only 30% to 35% occupancy.
Short-term renting financially outperforms long-term in Nicaragua specifically for furnished properties with pools or ocean views in San Juan del Sur, La Talanguera, and Granada's historic center where international tourists and digital nomads pay premium nightly rates.
What's the average gross rental yield in Nicaragua in 2026?
As of early 2026, the average gross rental yield for residential property in Nicaragua sits around 6% to 7% nationwide, which is competitive compared to many Central American markets.
The realistic range spans from about 5.5% in prime city-center locations (where purchase prices are higher) up to 7.5% or even 8% in neighborhoods just outside the main commercial cores where prices drop faster than rents.
Smaller units like studios and one-bedroom apartments typically achieve the highest gross yields in Nicaragua because they attract the largest tenant pool (young professionals, students, single expats) and their per-square-meter rents are proportionally higher than larger family units.
By the way, we have much more granular data about rental yields in our property pack about Nicaragua.
What's the realistic net rental yield after costs in Nicaragua in 2026?
As of early 2026, the average net rental yield after all costs for a foreign-owned residential property in Nicaragua typically lands between 3.5% and 5% in stable, easy-to-rent neighborhoods.
The realistic range most landlords experience runs from about 2.5% (in tourist zones with higher vacancy and maintenance) up to 5.5% for well-located Managua properties with minimal vacancy and efficient management.
The three main cost categories that eat into your gross yield in Nicaragua are property management fees (typically 8% to 10% of collected rent, higher for fully hands-off arrangements), maintenance reserves including water tank and backup power upkeep (budget 5% to 8% given Nicaragua's infrastructure realities), and the combination of vacancy losses and municipal property tax (IBI).
You might want to check our latest analysis about gross and net rental yields in Nicaragua.
What monthly rent can I get in Nicaragua in 2026?
As of early 2026, typical monthly rents in Nicaragua are around $170 to $290 (6,200 to 10,600 córdobas, or 155 to 265 euros) for a studio, $210 to $350 (7,700 to 12,800 córdobas, or 190 to 320 euros) for a one-bedroom, and $360 to $520 (13,200 to 19,000 córdobas, or 330 to 475 euros) for a two-bedroom apartment.
A realistic entry-level monthly rent for a decent studio in Nicaragua starts around $170 to $220 (6,200 to 8,000 córdobas, or 155 to 200 euros) in secondary neighborhoods, while better-located or furnished studios reach $250 to $290.
A typical one-bedroom apartment in Nicaragua rents for $210 to $280 outside city centers (7,700 to 10,200 córdobas, or 190 to 255 euros) and $300 to $350 in desirable Managua neighborhoods or Granada's historic core.
A standard two-bedroom apartment commands $360 to $460 (13,200 to 16,800 córdobas, or 330 to 420 euros) in most markets, climbing to $480 to $520 or higher in premium expat-friendly areas with security, parking, and modern finishes.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Nicaragua.
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 real numbers I should budget for renting out in Nicaragua in 2026?
What's the total "all-in" monthly cost to hold a rental in Nicaragua in 2026?
As of early 2026, the total all-in monthly cost to hold and maintain a typical rental property in Nicaragua (excluding mortgage payments) runs approximately $70 to $220 per month (2,550 to 8,000 córdobas, or 65 to 200 euros) plus 8% to 10% of collected rent for property management.
The realistic range spans from about $50 per month for a simple apartment with no HOA in a secondary city, up to $300 or more for a larger home with pool maintenance, security, and high HOA fees in premium Managua neighborhoods.
The single largest contributor to monthly holding costs in Nicaragua is typically the property management fee if you hire one (8% to 10% of rent), followed by HOA or condo fees which can range from $30 to $150 per month depending on the building's amenities and location.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Nicaragua.
What's the typical vacancy rate in Nicaragua in 2026?
As of early 2026, the typical vacancy rate for long-term rentals in Nicaragua ranges from about 8% (roughly one month per year) in high-demand Managua neighborhoods to 15% to 17% (nearly two months per year) in tourist-driven markets like San Juan del Sur.
Landlords in Nicaragua should realistically budget for one to two months of vacancy per year because tenant turnover happens, lease negotiations take time, and the rental market is less liquid than in larger Central American capitals.
The main factor causing vacancy rate differences across Nicaragua neighborhoods is the composition of the tenant pool: areas serving local professionals and embassy staff (like Managua's Villa Fontana) have steadier demand than beach towns where renters are seasonal tourists or short-term expats.
Tenant turnover in Nicaragua typically peaks during December through February when many lease cycles end around the holidays, and again in July through August when families relocate before the school year.
We have a whole part covering the best rental strategies in our pack about buying a property in Nicaragua.
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Where do rentals perform best in Nicaragua in 2026?
Which neighborhoods have the highest long-term demand in Nicaragua in 2026?
As of early 2026, the three neighborhoods with the highest overall long-term rental demand in Nicaragua are Managua's Carretera a Masaya corridor, Villa Fontana, and Las Colinas, all of which benefit from proximity to businesses, international schools, and modern amenities.
Families in Nicaragua gravitate toward Santo Domingo, Las Colinas, and parts of Carretera a Masaya in Managua where they find larger homes, secure compounds, good schools nearby, and reliable utilities.
Students looking for rentals cluster around neighborhoods near UNAN-Managua, UCA, and UNI in Managua, as well as university-adjacent areas in León, where smaller and more affordable units rent quickly despite high turnover.
Expats and international professionals prefer Santo Domingo and Villa Fontana in Managua for the security and services, Granada's centro histórico for the colonial charm and walkability, and San Juan del Sur's La Talanguera area for the beach lifestyle.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Nicaragua.
Which neighborhoods have the best yield in Nicaragua in 2026?
As of early 2026, the neighborhoods with the best rental yields in Nicaragua are typically found just outside the premium enclaves: think areas bordering Carretera a Masaya in Managua, secondary zones in León, and Masaya town, where purchase prices are lower but rents remain relatively stable.
These higher-yielding neighborhoods in Nicaragua generally deliver gross yields in the 7% to 8.5% range, compared to the 5.5% to 6.5% you might see in top-tier locations like Santo Domingo or Granada's colonial core.
The main characteristic allowing these neighborhoods to achieve better yields is that property prices have not been bid up by lifestyle buyers and foreign investors, so the rent-to-price ratio stays favorable even though the absolute rents are lower.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Nicaragua.
Where do tenants pay the highest rents in Nicaragua in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest monthly rents in Nicaragua are Santo Domingo and Villa Fontana in Managua (for long-term), and San Juan del Sur's beachfront and La Talanguera area (for short-term nightly rates that translate to high monthly equivalents).
In these premium Nicaragua neighborhoods, a standard two-bedroom apartment typically rents for $500 to $700 per month (18,300 to 25,600 córdobas, or 455 to 640 euros), while larger homes or furnished units can reach $900 to $1,500 or more.
What makes these neighborhoods command the highest rents is not just location but the combination of 24-hour security infrastructure, reliable water pressure and backup power, modern construction with North American-style finishes, and proximity to international schools or beaches.
The typical tenant profile in these highest-rent Nicaragua neighborhoods includes embassy staff and diplomats, NGO workers, executives at multinational companies, retired expats with US or European pensions, and digital nomads seeking reliable internet and comfortable amenities.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Nicaragua. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Nicaragua in 2026?
What features increase rent the most in Nicaragua in 2026?
As of early 2026, the three property features that increase monthly rent the most in Nicaragua are reliable water supply with a cistern or tank (because municipal water pressure is inconsistent), backup power systems like inverters or generators (because outages still happen regularly), and secure parking within a gated compound.
A property with a proper water storage tank and backup power can command a rent premium of 15% to 25% over comparable units without these features, which is higher than you would see for the same upgrades in countries with more reliable infrastructure.
One commonly overrated feature that landlords invest in but tenants do not pay much extra for in Nicaragua is luxury kitchen finishes like granite countertops or high-end appliances, because most tenants prioritize functional reliability over aesthetic upgrades.
One affordable upgrade that provides a strong return on investment for landlords in Nicaragua is installing a quality internet connection with fiber where available, since remote workers and expats will pay noticeably more for guaranteed fast and stable wifi.
Do furnished rentals rent faster in Nicaragua in 2026?
As of early 2026, furnished apartments in Nicaragua typically rent two to four weeks faster than unfurnished equivalents, with the biggest speed advantage in expat-heavy areas like Santo Domingo, Villa Fontana, and Granada's historic center where tenants want turnkey solutions.
Furnished rentals in Nicaragua generally command a rent premium of 15% to 25% over unfurnished units, though this premium shrinks in purely local markets where tenants often already own furniture and prefer lower base rents.
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How regulated is long-term renting in Nicaragua right now?
Can I freely set rent prices in Nicaragua right now?
Landlords in Nicaragua generally have significant freedom to set initial rent prices through negotiation, as the private rental market for modern properties operates without strict government-mandated rent caps at lease signing.
However, Nicaragua does have an older tenant protection law (Ley de Inquilinato) that can impose restrictions on certain categories of rentals, though the tiny córdoba thresholds in that law mean most market-rate properties today effectively fall under general contract rules rather than the strict low-rent protections.
What's the standard lease length in Nicaragua right now?
The standard lease length for residential rentals in Nicaragua is 12 months with renewal options, though shorter six-month leases are sometimes used in tourist areas where both parties want flexibility.
Security deposits in Nicaragua are typically one month's rent, though landlords of furnished or high-end properties sometimes request two months; the exact legal maximum is not clearly codified in a single public statute, so using standard defensible terms in a written contract is the safest approach.
Deposit return rules in Nicaragua follow general civil code principles, meaning the landlord should return the deposit within a reasonable timeframe after lease end minus legitimate deductions for unpaid rent or damages, but having clear contract language on timelines and conditions protects both parties.
We made this infographic to show you how property prices in Nicaragua compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Nicaragua in 2026?
Is Airbnb legal in Nicaragua right now?
Airbnb-style short-term rentals are legal in Nicaragua, but they are not unregulated, meaning you can operate but should expect registration and compliance requirements.
If you are providing tourist accommodation services in Nicaragua, you likely fall under INTUR oversight and may need to register under the technical regulation for tourism service providers (Reglamento Técnico NTON), with the exact process varying by municipality and whether you operate one unit or multiple.
Nicaragua does not have a widely enforced national cap on how many nights per year you can rent short-term (like the 90-day limits in some European cities), though coastal and border location restrictions from Ley 690 and Ley 1258 can affect where you can operate at all.
The most common consequence for operating a non-compliant short-term rental in Nicaragua is administrative fines from INTUR or local authorities, potential tax penalties from the DGI, and in some cases pressure from neighbors or condo associations who report unlicensed tourist activity.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Nicaragua.
What's the average short-term occupancy in Nicaragua in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Nicaragua's main tourist markets hovers around 30% to 35%, which is significantly lower than mature STR markets in Mexico or Costa Rica.
The realistic range most short-term rental operators experience in Nicaragua runs from about 20% to 25% for poorly optimized or off-location listings up to 45% to 50% for the best-managed properties with great reviews and premium amenities.
The highest occupancy months for short-term rentals in Nicaragua are December through April (dry season), with peaks around Christmas, New Year, Easter week, and February when North American and European travelers escape winter.
The lowest occupancy months are typically September and October (peak rainy season), when tourism drops significantly and even well-priced listings struggle to fill more than a few nights per week.
Finally, please note that you can find much more granular data about this topic in our property pack about Nicaragua.
What's the average nightly rate in Nicaragua in 2026?
As of early 2026, the average nightly rate for short-term rentals in Nicaragua ranges from about $90 to $110 (3,300 to 4,000 córdobas, or 82 to 100 euros) in Granada to approximately $160 to $180 (5,850 to 6,600 córdobas, or 146 to 164 euros) in San Juan del Sur.
The realistic range covering most STR listings in Nicaragua runs from about $50 per night (1,830 córdobas, 46 euros) for basic rooms or budget apartments up to $300 or more (11,000 córdobas, 275 euros) for luxury beachfront villas with pools and ocean views.
Nightly rates in Nicaragua typically swing by 40% to 60% between peak and off-season, meaning a property averaging $150 per night in January might only command $90 to $100 in September or October.
Is short-term rental supply saturated in Nicaragua in 2026?
As of early 2026, the short-term rental market in Nicaragua's main tourist destinations shows moderate saturation, with occupancy rates around 30% suggesting that supply outpaces consistent demand, especially in the off-season.
The number of active STR listings in Nicaragua appears to be growing slowly, particularly in San Juan del Sur where market snapshots show hundreds of active listings competing for a limited pool of travelers.
The most oversaturated neighborhoods for short-term rentals in Nicaragua are San Juan del Sur's beachfront and central areas, plus Granada's historic core around Parque Central, where listing density is highest and price competition is fierce during low season.
Neighborhoods that still have room for new short-term rental supply include emerging areas like La Talanguera's hillside zones in San Juan del Sur, less-touristy Granada neighborhoods with character, and León which has growing interest from backpackers and cultural tourists but far fewer listings.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Nicaragua, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Ley 1240 (Foreign Investment Law) | Official law governing foreign investment rights in Nicaragua. | We used it to confirm foreigners can legally own and rent property. We referenced it to explain registration expectations for non-resident investors. |
| Ley 1258 (Border Territory Law) | Official 2025 law defining border zone restrictions. | We used it to flag the 15km border zone as high-risk for foreign buyers. We treat this as a location filter before any purchase. |
| Ley 690 (Coastal Zones Law) | Primary legal framework for coastal property rights. | We used it to explain public domain versus private rights near beaches. We created due diligence checkpoints for coastal properties. |
| DGI Tax Authority FAQ | Official government guidance on taxpayer obligations. | We used it to confirm non-residents must register to collect rental income. We referenced it to explain tax compliance requirements. |
| Numbeo Nicaragua Property Data | Widely used benchmark for rent and price comparisons. | We used it as baseline for gross yields, rents, and price-per-sqm. We cross-checked implied yields and treated figures as estimates. |
| AirRoi Granada STR Report | Professional STR analytics platform with market data. | We used it to anchor occupancy and ADR estimates for Granada. We referenced listing counts to assess market saturation. |
| AirRoi San Juan del Sur Report | Professional STR analytics for Nicaragua's top beach market. | We used it to establish nightly rate and occupancy benchmarks. We compared it with Granada to show market differences. |
| INTUR Nicaragua Tourism Data | National tourism authority reporting official sector statistics. | We used it to contextualize short-term rental demand drivers. We referenced it to explain seasonality patterns. |
| IBI Property Tax Law | Official legal basis for municipal property taxation. | We used it to explain annual property tax obligations. We referenced it when building holding cost budgets. |
| BCN 2026 Exchange Rate Notice | Central bank official currency conversion reference. | We used it for all córdoba to USD conversions. We applied it consistently across rent and cost estimates. |
| PwC Nicaragua Tax Summary | Major accounting firm's authoritative tax reference. | We used it to cross-check resident versus non-resident tax treatment. We validated withholding approaches described in local practice. |
We have made this infographic to give you a quick and clear snapshot of the property market in Nicaragua. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.