Hello Everybody:

 

Last Wednesday the 12th of August there was published in LA GACETA, Number 151, the Law 694 named: "LEY DE PROMOCION DE INGRESO DE RESIDENTES PENSIONADOS Y RESIDENTES RENTISTAS" which was approved by the National Assembly (Nicaraguan Congress), on June 18th.

 

With this law, The Nicaraguan Government is changing the previous Law #628 from 1974. The new law has several advantages over the last one, such as more details about the procedure to get Residency in the two standard ways: Retirement with Pension or with Private income. There are more definitions and it is going to be useful for Government INTUR - Instituto Nicaragüense de Turismo or the Tourism Nicaraguan Tourism Institute, which is the government's Department in charge of applying this Law.

 

In my opinion it is the result of many years of application of the previous law which had several gaps and we Lawyers, Retirees and INTUR had to figure out what to do with those gaps. Now we have a comprehensive Law and it will not be subject to personal interpretations, most of it at least. The new Law has some of the same benefits as the old one, but they are improved, and it includes some new ones.

 

This commentary is to explain the most important parts, the gist of the law, and not to describe the structure or explain one by one the 27 articles of the Law.

 

The objective of this Law is the promotion of the Special Tourism, and gives many people the opportunity to come to Nicaragua to live for a long period of time as a Resident (five years). To people who can prove an minimum income, it gives a special fiscal treatment with tax exemptions.

 

To take advantage of this law and get its benefits, people who are going to apply must prove a monthly income of Six hundred US dollars ($ 600.00) for Retiree (on pension) and Seven hundred fifty US dollars ( $ 750.00) for people with privates incomes; i.e. benefits or incomes from Investments, Certificate of Deposits for five years, Bonus, Revenues, Stocks, Rents, Retirement Plans, etc. Dependants could be parents of the applicant, spouse (husband or wife), children under 21 years old; or any other relative in the four grades who are dependents of the applicant. The applicant must have an income of One hundred fifty US dollars ($150.00) for each dependent.

 

Nicaraguans who have been living more than ten years abroad and have an income coming from abroad, according to the Law, also can get the benefits of this Law.

 

The Benefits are:

 

1. Right to Residency for five years.

 

2. Exemption from payment of the one way ticket out of the country for the applicant/resident.

 

3. A tax exemption for a vehicle C.I.F. (Cost, Insurance and Freight), up to twenty five thousand dollars ($ 25,000.00); if the price of the vehicle is over twenty five thousand dollars ($ 25,000.00) the Resident will pay taxes on the difference. This vehicle can be changed with tax exemption every four years. Vehicles can be imported from the country where the applicant comes from or bought in Nicaragua in both cases there will be a tax exemption.

 

4. A tax exemption of twenty thousand dollars ($ 20,000.00) for household goods. There is a comprehensive list of articles that can be considered household goods. i.e.: "household goods are the new or used goods that help or allow living comfortably in a house".

 

5. A tax exemption of fifty thousand dollars ($ 50,000.00) of the VAT (value added tax) on construction materials to build a house to live in.

 

6. Tax exemption of the VAT on rental cars of the Resident, for his personal use in Nicaragua.

 

Requirements: People who want to apply and get these benefits must submit these documents:

 

1. Application form.
2. Income certification
3. Birth Certificate
4. Two pictures
5. Health Certificate
6. Photocopy of the passport
7. Marriage License (where relevant)
8. Police Record Certificate
9. List of the household goods and vehicle's documentation
10. Naturalization Certificate for people who have a different nationality than where they were born.

 

The whole documentation must be Apostilled (given Consular Legalization) and Authenticated in the country where the documents come from, for the Nicaraguan Consulate.

 

Obligations:

 

1. Live in Nicaragua at least six months per year, it could be continuous or discontinuous. However, with INTUR's authorization there could be exemptions, e.g. heath reasons or having investments in real estate over Seventy five thousand dollars ($ 75,000.00) in Nicaragua.

 

2. Submit every year to INTUR, documentation to prove that his/her income (in the amounts specified above) comes into Nicaragua.

 

3. The renewal every five years of the Residency according to the Residency Law of the Immigration Department.

 

Prohibition:

 

1. The Resident can't work in Nicaragua with government money; but could do private investments in a business and make investments in real estate over Seventy five thousand dollars ( $ 75,000.00) in Nicaragua in accordance with the Ministry of Economy and Development's approval. People such as scientists or professors in Universities or Research Institutes will be able to work in Nicaragua.

 

2. People who build a house for personal or private use, with tax exemptions in construction materials, can't transfer/sell the house for ten years or they must pay the taxes on those materials.

 

The age to apply:

 

The legal age to apply for both Retiree and Private Income applicants is forty five years old, however the same Law in article 23 exempts people who are previously retired for medical reasons or with private income clearly proven. That means, to apply as Resident with Private Income there are in fact no limitations.

 

The previous Law of 1974's effect and Existing Residents:

 

People who got residency before this law went into effect will not be affected, even if their incomes are lower than that required by the new law; the law doesn't have a retroactive effect, so the people who actually are resident under the previous law don't have to prove or raise their incomes and will get the same benefits as new residents.

 

REGULATIONS:

 

INTUR is at the present time working on the regulations of this Law, that is, the rules of application. I will send my opinion to the Director of the Legal Department about the gaps and suggestions that, based on my expertise, must be considered.

 

This is a modern Law which offers several advantages over the last one, and I am pretty sure it will be a wonderful tool for "ex pats" who want to live in Nicaragua.

 

Thank you, and of course I will be pleased to assist everyone.

 

Paul Tiffer

Attorney at law, Public Notary

Tiffer & Associates

Cell Phone: (505) 88841652

Managua, Nicaragua

ptiffer@cablenet.com.ni

 

 

As of Friday, June 5, 2009 we have a new Coastal Law. After five years of negotiations, discussions and meetings, the Ley de Desarrollo de Zonas Costeras ("Coastal Law") became law by unanimous vote. The passage of the Law brings to a conclusion the uncertainties engendered by five years of rumors and unknowns.

 

Below are some highlights of the new Law.

 

Article 2 of the Agrarian Law of 1917
Article 2 established that the State owned all vacant and untitled (as of 1917) land within 2 kilometers of the coast. The new Law, in Article 62, states that if there is a conflict between existing laws the Coastal Law will prevail over all previous laws. The new Law neither affects nor restricts legally acquired possessor and private property rights that were acquired prior to the passage of the Coastal Law. Article 62 specifically states that this Article is intended to give judicial security for investments and the use and enjoyment of property. The Article further states that whenever the Coastal Law refers to ownership and use of the coastal zone, especially the demarcation of the public use area, the new Coastal Law is the law to apply. All other previous laws that oppose or contradict the new Law are without effect. The diputados believe that this Article makes the Law a non-confiscatory law. Although ANID and the private sector wanted Article 2 to be annulled, Article 62 was the agreed upon compromise. It is hoped that the interpretation of the term “legally acquired’ does not become a weapon for governments in the future to use against rightful property owners.

 

Access
The Coastal Law states that public access to the beach will be located at all times at historical access points. Historic access is defined in the Law as having been customarily used for ten years or more.

 

If there is no historical access and none is planned either in the developer’s master plan or in the public development plan, then a new access path will be established. The establishment of the new access path will be done with the approval of the Commission for Coastal Development (CDZC), the Municipality and the landowner and will be 10 meters wide.

 

Definitions and Concepts
The Coastal Law defines Coastal as being the area or land between the low tide and the maximum high tide along the ocean.

 

Coastal Zone is defined as the area that is a variable width along the border between the dry land and the wet land.

 

Restricted Zone is the area within the coast and the coastal zones.

 

The Coastal Public Use Zone includes the beaches (which is defined as the area that is covered by water at any time) and the area between high and low tide plus 50 meters inland from the mean high tide, but legally acquired rights will be respected. However, the 50 meters will have zoning restriction and a requirement for environmental impact studies on privately owned land. (See Article 19.)

 

The Public Use Zone along natural lakes and lagoons is the mean high water line plus 5 meters inland. For artificial and man-made lakes, the originally established public domain boundary will control.

 

The Coastal Restricted Use Zone along ocean lands is the area where the public use zone ends plus 200 meters inland where the land is owned by the State and was not legally acquired prior to passage of the Law.

 

The Coastal and the Coastal Zones are in the public domain and owned by the State, unless the rights to these areas were legally acquired prior to enactment of the Law.

 

Private property is described as titles legally acquired prior to passage of the Law.

 

State owned lands cannot be sold, privatized or transferred. Legally acquired titles that were acquired prior to the passage of the law will be recognized.

 

Islands are owned by the State unless they were legally acquired prior to the passage of the Law.

 

Lands belonging to indigenous communities are not in the public domain.

 

Increases in land along the Coastal Zone shall be property of the State regardless of whether the increases were caused by natural or man-made events.

 

Possession of publicly owned lands will not, under any circumstances, imply right of possession or title.

 

CDZC
The Law requires the creation of a Commission for the Development of the Coastal Zones (Comisión para el Desarrollo de las Zonas Costeras (CDZC)). The Commission will be composed of representatives from the Instituto Nicaragüense de Turismo (INTUR), Instituto Nicaragüense de Estudios Territoriales (INETER), Ministerio de Trasporte e Infraestructura (MTI), Ministerio del Ambiente y Recursos Naturales (MARENA), the Nicaraguan Army, the National Police, COSEP, RAAN, RAAS, and the Municipalities (AMUNIC),

 

CDZC will be responsible for overseeing the development of a Coastal Zone map (to be done within 3 years) and delineating public and private zones (to be done within 5 years). It will also oversee the granting of concessions by the Municipalities and the creation of a Development Plan for the Coastal Zones.

 

Public Use Zone
The Coastal Law establishes a public use area belonging to the State of 50 meters along the oceans measured inland from the mean high tide line, unless the property was legally acquired prior to passage of the Law. The line for public use areas along natural lakes and lagoons (including Laguna de Apoyo and Laguna de Masaya) is 5 meters from the mean high water line.

 

Nevertheless, the Law specifically states that if a property owner has legally acquired land and his legal title includes land within the public use zone, the private property owner’s rights and title will be respected. Nevertheless, the government may impose use or zoning restrictions on the area defined as the public use zone.

 

Some of the allowed activities in the public use zone are: sun and beach tourism; sports; public walkways; emergency vehicle circulation; and temporary lifesaving structures. The prohibited activities include: residential structures; walls; fences; roadways; high tension electric lines; permanent commercial buildings; and parking areas for cars. Nothing will be allowed to be constructed that will obstruct the free use of the public zone by the public.

 

Concessions
Concessions will be granted on publicly owned land. Publicly owned land includes the coastal zone, the public use zone and restricted use zone so long as these areas are owned by the State. Concessions are not applicable to privately owned land.

 

Municipalities will have the right to grant concessions with the coordination of the central government. Concessions, once granted, will be registered in a Concession Registry.

 

Concessions may be granted to Nicaraguans, Nicaraguan corporations and resident foreigners. The procedures and requirements to acquire a concession are to be established by Regulation. The Law lists some requirements to apply for a concession which depend upon the purpose of the requested concession (commercial, tourism, or residential). A bond or guaranty will be required to apply for a concession. Only one concession per person (or his spouse or minor children) may be granted. A concession will be granted for 20 years or in the case of a tourism development for a period of 59 years.

 

The priority for the granting of a concession will be to favor the party who is in good faith possession of the land.

 

RAAN and RAAS:
This summary of the Law does not address the rights along the Caribbean or Atlantic Coast. The law has specific provisions for the communities and lands in these areas.

 

Conclusion
ANID is pleased that the uncertainties of the last five years, pending the passage of the Coastal Law, are finally over. We are hopeful that with the inclusion of Article 62, the Coastal Law will be enforced for the benefit of the public and the public’s right to use of the beaches of Nicaragua, but with respect for the legally acquired property rights of individual property owners.

 

 

Gran Pacifica Resort

 

 

Nicaragua is fast emerging as a successful near-shore location for contact centers, especially teleservices firms that provide a full array of business process outsourcing services.

 
The country has a large and available workforce. It has approximately 5.9 million inhabitants and while the unemployment rate is 3.9 per cent, its underemployment level is over 45 percent, reports the CIA Factbook: one of the highest in the region.

 
 
Nicaragua is in the central time zone, enabling easier integrated contact handling with other North American contact centers and offices. It is just a quick two-and-a-half hour flight from the Texas. Major airlines have daily direct flights from Houston, Los Angeles, Miami, and Atlanta.

 
Nicaragua also have highly developed communications infrastructure, which was completely transformed in the late 1990’s. According to ProNicaragua, an organization that creates awareness about the nation, the telecommunication sector is fully privatized and is considered to be one of the most modern, constant, and reliable in Central America. Global direct access is possible through via two fiber optic submarine cables, and reliable multinational carriers have competitive services and rates. There are fiber optics and digital switching, metropolitan area fiber networks, and international private leasing circuits.

 

Continue Reading....
http://callcenterinfo.tmcnet.com/Analysis/articles/58323-nicaragua-emerging-economy-ideal-bpo-destination.htm

Technology Marketing Corporation, June 18, 2009

Hello Everybody:

 

Last week I went to INTUR (Institute of Tourism of Nicaragua) and saw the latest version of the new law for retired people, and there are several modifications to the present law #628 from 1974. Some of the most important change I was able to see are:

 

The tax exemption will be increased to $ 25,000.00 for cars, and the car can be changed every 4 years instead the current $ 10,000.00 and 5 years.

 

The tax exemption will be increase to $ 20,000.00 for household goods. The current law just allows a $ 10,000.00 household goods exemption.

 

The age to apply will be 45, but if the applicant can prove he/she has a stable income there will not any limit for the age, so younger people can get the approval and get their residency in Nicaragua under this law.

 

I didn't’t read but I am sure if the replacing of the car will be every four years, residency can must be every four years too.

 

The law will be clear in order to accept the Naturalization Certificate instead of the Birth Certificate, i.e.: an American citizen who was born in Hong Kong or any other country will be able to submit his/her Naturalization Certificate.

 

There will be a tax exemption in the 15% IVA, for Residents covered by this law for any construction material to build a house in Nicaragua in local purchases for the first $ 50,000.00.

 

Tax exemption from the IVA (15%) in car rentals in Nicaragua.

 

However, the minimum amount to apply will be $ 600 for the applicant and $ 150 for each dependent, instead $ 400 for the applicant and $ 100 with the present law. It is really important to say the law doesn't have a retroactive effect, so the people who actually are resident don’t have to prove or raise their incomes and will get the same benefit as new residents.

 

This new law will be ready if everything is ok this year. INTUR is expecting it in the next 3-4 months, but it will depend on the National Assembly (Nicaraguan Congress) and their members. As soon the law is ready I will resume taking about it.

 

So, for people who are considering live in Nicaragua as retirees this is really Good News!

 

Paul Tiffer Rodríguez Abogado y Notario Público Tiffer & Asociados Celular: (505) 88841652 Managua, Nicaragua
 

 

American tourist who got ill while in a cruise ship recognizes Nicaraguan medical care quality.

 

Nicaragua is beginning to gain ground in the area of health tourism, as its quality was tested earlier this month when an American tourist, who arrived on a cruise, was saved from death after suffering a severe heart problem.

 

He was James Marsh, who last April 12 was placed in the Intensive Care Unit at Hospital Metropolitano Vivian Pellas, in Managua.

 

Marsh enjoyed with his wife, Virginia, a cruise trip leaving from Chile to United States.
Upon arrival in Nicaragua, at the beaches of San Juan del Sur, Marsh, 72, suffered a pulmonary and renal edema and loss consciousness.

 

"These are the kind of situations that if they are not addressed immediately the patient could die," said the head of Cardiology at Hospital Vivian Pellas, Daniel Rivas. Marsh was rushed to the hospital in an ambulance and immediately a specialist medical team took care of him.

 

The man was admitted to the Coronary Intensive Care Unit, where he underwent medical treatment.  Dr. Rivas told the press that Marsh’s main health problem was caused by hypertension.  He added that in addition to this, the patient has diabetes; he has an aortic prosthesis and is carrying a pacemaker. Marsh also faces problems of chronic renal failure, the doctor added.

 

"Gradually the treatment applied from the beginning, allowed both the heart and blood pressure to improve day by day” he said.

 

He also said "if the patient was not quickly intervened with adequate medical treatment, he probably would have died, but fortunately the intervention was successful," added the Nicaraguan specialist.

 

Quality medical attention as in the first world

 

Visibly recovered and accompanied by his wife, Marsh said he felt grateful for the quality of care he received in Nicaragua. He even compared the quality of care he received during almost a week, as the one you get in the United States hospitals.

 

"When I boarded the cruise I never thought I would end up in a hospital in Managua," he said. Marsh expressed his interest in returning to Nicaragua as a visitor and travel to different destinations in this country, to learn from the traditions and historical sites. Marsh left Nicaragua, heading to Los Angeles, California, along with several relatives, including his wife.

 

In recent years Nicaragua has been working to improve and provide medical service as a tourist attraction, like Costa Rica.

 

"We feel very happy because we could share both with the patient and the family as we were applying the treatment," concluded Doctor Rivas.

 

Source: www.laprensa.com

 

 

As part of the modernization process of Nicaragua's telecommunications network, we wish to inform you that the Nicaraguan Telecommunications Company (ENITEL) has announced that all land and mobile phone lines in the country will increase from 7 to 8 digits starting Wednesday April 22nd.

 

As of that date, users will need to add the prefix "2" before dialing a land line, and the prefix "8" before dialing a mobile phone line.

 

 

Managua -  The Nicaraguan people will this month be closer to the goal of declaring the country free from illiteracy, on the occasion of the 30th anniversary of the Sandinista Revolution.

 

Sources from the education sector indicated several municipalities are working in that direction, to notably reduce the illiteracy rate. El Castillo, in Rio San Juan department, is among those municipalities to soon accomplish that goal, with a rate likely to be below 3 percent.

 

May was a successful month, with over 90 municipalities declared illiteracy-free territories, allowing the country to have in July a rate below the one requested by UNESCO.

 

So far this year, nearly 90,000 Nicaraguans have learned to read and write, and are committed to getting their sixth grade certificate by 2015, an objective announced by Education Minister Miguel de Castilla.

 

INSIDECOSTARICA.COM, 02 June 2009
http://insidecostarica.com/dailynews/2009/june/02/ca02.htm

 

 

Property sales in Nicaragua have fallen by up to 35% in the last year with second home investors deserting the emerging real estate market.

 

The market peaked in early 2008, according to Brooke Rundle, a broker with Coldwell Banker Nicaragua. She estimated that the number of transactions has decreased 30 to 35% since.

 

However the downturn may have begun before then according to figures from the Managua office of the First American Title Insurance Company which shows that orders for title insurance began declining in 2006.

 

San Juan del Sur is the main coastal hub for tourism and real estate development but it has seen property sales slow. This is not surprising according to Rundle as most of Nicaragua's foreign property investors come from the US and Canada where the economic downturn is robust.

 

There is some hope that European property investors can be persuaded to the market. Sam Stewart, a broker with Re/Max Horizons in San Juan del Sur, said that the one of the big attractions is that Nicaragua is a cheap place to live for retirees.

 

He believes that Nicaragua's popularity as a retirement destination will increase as property values increase in other South American locations such as Costa Rica, Mexico and Panama.

 

But like all emerging property markets investing is not always straightforward. Although there are no restrictions on foreign ownership of property, real estate agents rarely get exclusive rights to advertise properties in Nicaragua, and that there is no multiple listing service. This means sellers can market their properties through several real estate agents simultaneously.

 

Buyers pay a transfer tax equal to 1% of the purchase price. An additional 1 to 1.5% in legal fees goes to the lawyer who researches the title and draws up the closing documents. The seller usually pays the real estate agent's commission, which is 3 to 6% for a home, but 7 to 10% for development land.

 

17 May 2009, INSIDECOSTARICA.COM

 

 

By Tim Rogers

 

Nicaragua's tourism sector is celebrating the recent announcement that the government of President Daniel Ortega is going to lift all visa requirements for foreign travelers as an incentive to boost tourism here.

 

The announcement was made several days ago by Tourism Minister Mario Salinas during the FITUR international tourism trade fair in Spain. President Ortega is expected to sign the measure this week, according to sources at the Nicaraguan Tourism Institute (INTUR).

 

Once the measure is signed, all tourists - regardless of nationality - will be able to visit Nicaragua without a visa. Industry sources expect the number of Costa Rican tourists alone could double as a result of the measure.

 

"This is a very important accomplishment," said Lucy Valenti, president of the Nicaraguan Tourism Chamber. She noted that when former President Arnoldo Alemán temporarily lifted tourist visa requirements for Costa Ricans in the mid 1990s, the number of Tico tourists coming to Nicaragua immediately increased by 40-50 percent. Those numbers fell off once the visa requirement was reinstated several years later.

 

In addition to luring more tourists from Costa Rica, the visa suspension will also help facilitate the arrival of more tourists from Asia, several countries in South America, such as Colombia, and emerging European markets, such as Russia, Valenti said.

 

More established tourism markets, such as the United States, Canada, the European Union, and other CA-4 countries (Honduras, Guatemala, El Salvador ) won't be affected by the measure, since they didn't have tourism visa requirements in the first place.

 

The suspension of tourism visas will also not affect the $5 tourist card that all tourists must purchase upon entering the country.

 

The Tico Times, Feb 4, 2009
http://www.ticotimes.net/dailyarchive/2009_02/0204093.htm
 

 

Managua - Social organizations and the general public approved of the A Better House program by the government of Nicaraguan president, Daniel Ortega.

 

This plan is inclusive and aims to offer construction materials to low income families to repair and build their homes, pointed out German Ordonez, coordinator of the community movement on a departmental level.

 

The official explained that their work in coordination with the government has benefited more than 2,500 families in Managua alone.

 

This is a program that we consider open, clear and not exclusive or sectarian. It is for the community, he added.

 

INSIDECOSTARICA.COM, 19 February 2009