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