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
Buying property in Nicaragua as an American comes with unique opportunities and risks that most online guides simply gloss over.
We wrote this guide to give you honest, source-backed answers to the questions US citizens actually ask before purchasing real estate in Nicaragua.
We constantly update this blog post to reflect the latest legal, tax, and market changes 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.
Can a US citizen legally buy residential property in Nicaragua right now?
Can I buy a home in Nicaragua as a US citizen in 2026?
As of early 2026, US citizens can legally buy residential property in Nicaragua, including houses, condos, and apartments, and hold title directly in their own name in most situations.
The standard buying process in Nicaragua involves hiring a local notary to prepare your purchase deed (called an "escritura pública"), verifying the property's status at the Public Registry, paying applicable taxes and fees, and then registering your ownership officially.
However, the bigger concern for American buyers in Nicaragua is not whether purchasing is legal, but rather title quality, enforcement reliability, and political risk, which is why the US Embassy has issued specific warnings urging Americans to exercise caution before investing in Nicaraguan real estate.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Nicaragua.
Are there many Americans buying property and living in Nicaragua in 2026?
As of early 2026, Americans represent a visible but still minority group of property buyers in Nicaragua, with no official government statistic published on the exact percentage of US ownership nationwide.
The highest concentrations of American expats and property owners in Nicaragua are found in San Juan del Sur, the Tola and Guacalito beach corridor, Granada's historic center, select gated communities in Managua, and increasingly in the Río San Juan area near San Carlos.
The top three reasons Americans choose Nicaragua include significantly lower property prices compared to the US, the Pacific coastline lifestyle with year-round warm weather, and the relatively low cost of living that stretches retirement savings further.
The American expat community in Nicaragua has shown cautious growth over the past few years, though recent US Embassy warnings and ongoing political uncertainty have made some prospective buyers more hesitant, creating a more selective and risk-aware buyer pool than in previous years.
Do foreigners have the same buying rights as locals in Nicaragua?
In general, foreigners in Nicaragua, including Americans, are treated similarly to local Nicaraguan buyers when purchasing standard residential property, and there is no special restriction that singles out US citizens specifically.
However, certain property types and locations in Nicaragua are restricted or require extra scrutiny for foreign buyers, including coastal and shoreline zones governed by special planning laws, border areas within 15 kilometers of Costa Rica or Honduras, indigenous communal lands, and protected natural areas where title can be disputed or unclear.
We cover all these things in length in our pack about the property market in Nicaragua.
Can I buy property in Nicaragua without a residence permit?
In Nicaragua, you generally do not need a residence permit to purchase property, meaning you can legally buy a home while living abroad as a non-resident visitor.
The process for buying property remotely in Nicaragua typically involves granting power of attorney to a trusted local lawyer or notary who can sign documents and complete Registry filings on your behalf while you remain outside the country.
Owning property in Nicaragua does not automatically grant you any visa or residency rights, so if you want to live there long-term, you will need to apply for residency through a separate immigration process.
The main practical challenge for non-resident buyers in Nicaragua is coordinating due diligence, bank transfers, and notarized paperwork across time zones, which is why having a reliable local legal representative is essential.
Can US citizens own land in Nicaragua?
US citizens can legally own land outright in Nicaragua in most situations, including the plot underneath a house, with full title registered in their own name at the Public Registry.
Most residential purchases in Nicaragua are freehold-style ownership where you hold complete title to both the structure and the land, rather than leasehold arrangements, though certain special zones may have different rules.
The specific geographic zones in Nicaragua where foreign land ownership is restricted or requires extra caution include coastal and marine shoreline areas subject to special zoning laws, the recently expanded 15-kilometer border territory along Costa Rica and Honduras, indigenous communal territories, and protected ecological reserves.
Please note that we have a dedicated blog article about the land buying process in Nicaragua here.
What documents will I need to buy in Nicaragua?
The essential documents a US citizen needs to purchase property in Nicaragua include your valid passport with copies, a notarized purchase deed prepared by a Nicaraguan notary, proof of funds such as bank statements or wire transfer records, and all Registry filing paperwork.
A local tax identification number is not always strictly required to sign a purchase contract in Nicaragua, but it becomes practically necessary if you plan to pay utilities, employ staff, file rental income, or handle ongoing tax matters with the DGI tax authority.
A local Nicaraguan bank account is not mandatory to complete a property purchase, as many foreign buyers use international wire transfers coordinated through their lawyer, though having a local account simplifies paying utilities, property taxes, and maintenance costs after you buy.
Proof of funds documentation is commonly requested by professional sellers and developers in Nicaragua, usually in the form of a bank letter or recent statements showing sufficient funds, while a local address may be needed for utility setup and municipal tax correspondence.
We have a whole section dedicated to all the documents you need in our Nicaragua property pack.
Can a foreign-owned company buy property in Nicaragua?
Foreign-owned companies can legally purchase residential property in Nicaragua, which some buyers use for liability protection, estate planning, or when multiple co-owners want to share a property.
Americans do sometimes use corporate structures similar to LLCs to hold property in Nicaragua, often through a Nicaraguan Sociedad Anónima (S.A.), though this is less common for simple residential purchases than direct personal ownership.
Owning property through a company in Nicaragua does not automatically lower your taxes and can sometimes increase compliance costs, extra filing requirements, and complexity when selling, so it is not a simple tax-savings strategy.
The main drawback of company ownership for residential property in Nicaragua is the added administrative burden, higher setup and maintenance costs, and potential complications for US tax reporting, which is why you should consult a US CPA before choosing this route.
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What taxes and fees will I pay in Nicaragua in 2026?
What are buyer taxes in Nicaragua in 2026?
As of early 2026, the main buyer tax in Nicaragua is a withholding tax on property transfers that ranges from 1% to 7% of the property value depending on price brackets, so on a $100,000 home (around 3.6 million córdobas or 92,000 euros), you might pay roughly $3,000 to $5,000 in transfer-related taxes.
The individual tax components include the progressive transfer withholding brackets published by the DGI (starting at 1% for lower-value properties and increasing to 7% for higher values), plus potential municipal fees that vary by location.
Buyer tax rates in Nicaragua do not officially differ between foreigners and locals for standard residential purchases, and there is no separate rate for primary residences versus investment properties at the national level.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Nicaragua.
What are other closing costs in Nicaragua in 2026?
As of early 2026, total closing costs excluding taxes typically run between 2% and 4% of the purchase price in Nicaragua, so on a $100,000 property (around 3.6 million córdobas or 92,000 euros), budget roughly $2,000 to $4,000 (72,000 to 145,000 córdobas or 1,850 to 3,700 euros) for non-tax closing expenses.
The main closing cost categories in Nicaragua include Registry inscription fees at roughly 1% of value (capped at around 30,000 córdobas or $830), notary and legal fees which vary widely but often run $500 to $2,000 depending on complexity, and real estate agent commissions typically paid by the seller but sometimes negotiated.
The closing costs that are most negotiable in Nicaragua include agent commissions, some legal fee structures, and occasionally who pays the transfer tax, while Registry fees and notary minimums are largely fixed by law.
The single closing cost that tends to surprise foreign buyers most in Nicaragua is the legal and due diligence expense when a property has a complicated title history, which can add unexpected time and attorney fees to verify ownership chains and clear any issues.
Are there hidden fees foreigners miss in Nicaragua right now?
Foreign buyers in Nicaragua commonly overlook between $1,000 and $3,000 (36,000 to 110,000 córdobas or 920 to 2,760 euros) in fees that were not obvious at the start of their purchase.
The top three hidden fees foreign buyers fail to budget for in Nicaragua are: extra legal costs when title histories are messy or require additional Registry research (often $500 to $1,500), surveys and certifications needed for coastal or border-adjacent properties (around $300 to $800), and US tax compliance costs like CPA fees if you open local bank accounts or buy through entities ($500 to $2,000 annually).
Ongoing annual costs that foreign property owners often underestimate in Nicaragua include municipal property taxes (usually modest but must be paid to maintain "solvency" status), property management or caretaker fees if you are not living there full-time, and utility deposits or reconnection fees that can add up.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate 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.
Can I get a mortgage as a US citizen in Nicaragua in 2026?
Do banks lend to US citizens in Nicaragua in 2026?
As of early 2026, some Nicaraguan banks do lend to US citizens for property purchases, but mortgage availability for foreigners is limited and underwriting standards are conservative.
US citizens are not treated better than other foreign nationals when applying for mortgages in Nicaragua, and what matters most is your ability to provide clean documentation, verifiable income, and a substantial down payment.
The main reason some banks in Nicaragua hesitate to lend to American borrowers specifically is the extra compliance burden that comes with US regulations like FATCA, which requires foreign banks to report on US account holders.
The typical approval success rate for US citizens applying for property loans in Nicaragua is relatively low compared to local borrowers, with most foreign applicants succeeding only when they bring excellent documentation and at least 30% down.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Nicaragua.
What down payment do American people need in Nicaragua in 2026?
As of early 2026, US citizens typically need a minimum down payment of 30% to 50% to obtain a mortgage in Nicaragua, so on a $100,000 property (around 3.6 million córdobas or 92,000 euros), expect to bring at least $30,000 to $50,000 upfront.
The typical down payment range for foreign buyers in Nicaragua spans from 30% at the low end (for buyers with excellent documentation and an easy-to-resell property) up to 50% or more when the bank considers the borrower or property higher risk.
A larger down payment in Nicaragua does typically improve your mortgage terms, potentially lowering your interest rate by half a percentage point or more and making approval more likely when your income documentation is less straightforward.
You can also read our latest update about mortgage and interest rates in Nicaragua.
What interest rates do US citizens get in Nicaragua in 2026?
As of early 2026, US citizens can expect mortgage interest rates in Nicaragua to range from roughly 8% to 11% for USD-denominated loans and 11% to 15% for loans in Nicaraguan córdobas.
Interest rates for foreign buyers in Nicaragua are generally similar to or slightly higher than rates for local residents, with the premium reflecting the added documentation risk and verification challenges banks face with non-resident borrowers.
Fixed-rate mortgages are available in Nicaragua but variable rates are also common, with typical loan terms running 10 to 20 years for foreign buyers, though shorter terms are more typical than in the US market.
The single factor with the biggest impact on the interest rate a US citizen will be offered in Nicaragua is the size of your down payment, with larger down payments (40% or more) often unlocking rates at the lower end of the range.
Can I use US income to qualify in Nicaragua right now?
Most Nicaraguan banks will accept US-sourced income for mortgage qualification, though expect more documentation requirements and verification friction than a local borrower would face.
Banks in Nicaragua typically require American applicants to provide two to three years of US tax returns, recent pay stubs or employment verification letters, bank statements showing consistent deposits, and sometimes apostilled or translated versions of these documents.
If standard US documentation is insufficient, some banks in Nicaragua may accept alternative verification such as CPA-prepared income statements, business financial records for self-employed applicants, or larger down payments that reduce the bank's documentation concerns.
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How do US taxes interact with owning property in Nicaragua?
Do I have to declare the property to the IRS from Nicaragua?
Simply owning a property in Nicaragua does not trigger a standalone IRS asset reporting form for most US citizens, but you must report any rental income you earn or capital gains when you sell the property.
The specific IRS forms involved depend on how you use the property: rental income is reported on Schedule E using guidance from IRS Publication 527, and if you sell at a profit, you report the gain on Schedule D and possibly Form 8949.
Owning the property alone does not trigger reporting, but once you receive rental income, sell the property, or hold it through a foreign entity, various IRS reporting obligations kick in.
Will I pay tax twice in the US and Nicaragua in 2026?
As of early 2026, there is a real possibility of paying some tax in both countries on rental income or sale proceeds, since there is no US-Nicaragua income tax treaty to automatically prevent double taxation.
The US and Nicaragua do not have a bilateral income tax treaty, which means you cannot rely on treaty provisions to reduce withholding rates or automatically eliminate double taxation on your Nicaraguan property income.
Without a treaty, most US citizens rely on the Foreign Tax Credit (IRS Form 1116) to offset taxes paid to Nicaragua against their US tax liability, which can reduce or eliminate double taxation but requires careful documentation of taxes actually paid abroad.
Property taxes paid in Nicaragua are generally not deductible on US federal tax returns for personal-use homes, but if the property generates rental income, you may be able to deduct Nicaraguan property taxes as a rental expense under IRS rules.
Do I need FATCA reporting when buying in Nicaragua?
FATCA reporting (Form 8938) is triggered by foreign financial assets, not by owning foreign real estate directly, so simply buying a house in Nicaragua does not automatically create a FATCA filing requirement.
The FATCA thresholds that trigger Form 8938 reporting start at $50,000 in specified foreign financial assets for US residents filing single (higher for married filers and those living abroad), but this applies to financial accounts and certain other assets, not the house itself.
FATCA (Form 8938) and FBAR (FinCEN Form 114) are separate requirements with different thresholds: FBAR is required if your aggregate foreign bank accounts exceed $10,000 at any time during the year, while FATCA has higher thresholds and covers a broader range of financial assets.
Consulting a US CPA before buying property in Nicaragua is strongly recommended if you will rent the property, hold it through a company, keep cash in Nicaraguan bank accounts, or want to plan for tax-efficient resale, and you should ask specifically about FBAR, FATCA, foreign tax credits, and entity reporting obligations.
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 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 |
|---|---|---|
| Banco Central de Nicaragua (BCN) | Nicaragua's official central bank and primary macro/financial statistics publisher. | We used BCN data to anchor our 2026 interest rate context for mortgages. We referenced their published banking rates to estimate realistic loan pricing for foreign buyers. |
| DGI (Dirección General de Ingresos) | Nicaragua's national tax authority with official tax notices. | We used DGI's published withholding rate brackets (1% to 7%) for property transfers. We built our buyer closing cost estimates directly from these official figures. |
| Nicaragua National Assembly Digesto | Official legislative repository for consolidated constitutional texts. | We verified constitutional property rights for foreigners buying in Nicaragua. We used this to ground our legal analysis beyond blog-level summaries. |
| US Embassy Managua | Official US government guidance specific to property risk in Nicaragua. | We highlighted Embassy warnings about enforcement and confiscation risks for Americans. We balanced "legal ability to buy" with "practical risk" based on their guidance. |
| US Department of State Investment Climate Statement | Annual US government assessment used by investors with property rights discussion. | We corroborated the rule-of-law and property-rights reliability risk environment. We used this as a second independent government source alongside the Embassy notice. |
| Leybook (Registry Fee Schedule) | Reproduces official tariff text used by Nicaragua's Registry system. | We quantified Registry inscription costs using the published formula and caps. We translated these legal fee rules into buyer-friendly closing cost estimates. |
| IRS Tax Treaties List | Official IRS list of all US income tax treaties. | We confirmed no US-Nicaragua tax treaty exists. We explained why double-tax relief relies on foreign tax credits instead. |
| FinCEN FBAR Requirements | US Treasury bureau that administers foreign account reporting rules. | We explained when a Nicaragua bank account triggers US reporting obligations. We stated the $10,000 aggregate threshold clearly for buyers. |
| IRS Publication 527 | IRS core guide for reporting residential rental property income. | We framed how US taxpayers report foreign rental income and expenses. We kept the US tax section practical and accessible for property buyers. |
| FAOLEX Coastal Zones Law | International legal database curated by FAO with national legislation. | We flagged that coastal zones have special land-use governance affecting titles. We explained why beachfront due diligence is uniquely important in Nicaragua. |
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