Whether you’re looking for a vacation home or want to start a new business, buying property in Nicaragua can be a good long-term investment. In this guide, we will cover the benefits and the process of buying a property in Nicaragua. If you’re currently thinking about buying a property in Nicaragua, please keep reading!

Why you should invest in a property in Nicaragua


One of the main reasons to invest in a property in Nicaragua is the low cost of living. Nicaragua is unquestionably one of the most affordable countries in Central America, and its real estate market is still relatively under-developed. This means that there are plenty of opportunities to get a great deal on a property. Many people choose to retire in Nicaragua and find an affordable piece of land where to build their dream home.

Ownership rights

In Nicaragua, you can fully own land and properties as a foreigner. You do not need a long-term visa and can buy property as a tourist. That said, if you’d like to create and own a corporation, here called “Sociedad Anonima”, you will need to have a local or resident business partner owning at least 1% of the shares.

Investment potential

You can get a great deal on a piece of property in Nicaragua. Nicaraguan real estate is still relatively undeveloped, which means there is plenty of opportunities and land available on the market. And as the country continues to develop, property values are likely to increase. So if you’re looking for an investment with a potential return on the property value, buying property in Nicaragua is a great option. Whether you’re looking for a residential or commercial property, Nicaragua has it all!

Comparing Nicaragua and Costa Rica, you can purchase similar land in Nicaragua for at least three times cheaper.

Beautiful scenery

In addition to affordability and growth potential, Nicaragua is also an absolutely beautiful country. It’s a largely unknown, untamed region; from the pristine beaches of the Pacific Coast to the lush mountains of the interior, there is something for everyone in Nicaragua. And with its tropical climate, it’s a great place to escape the cold winters of North America or Europe.

You can purchase breathtaking oceanfront and oceanview properties in places such as San Juan del Sur, Popoyo, Pochomil, and Las Peñitas. You could also opt for a piece of land among the tropical forest around the Matagalpa region, or on the height of the Ometepe volcanoes.

Check out those 14 places to visit while in Nicaragua!

A safe country

Another reason to invest in Nicaraguan property is the country’s safety. While Nicaragua has faced some political turmoil in the past, the situation has calmed down significantly in recent years. And according to the World Bank, Nicaragua is now one of the safest countries in Central America. When looking for a place to invest in both safe and stable property, Nicaragua should be at the top of your list.

The process of buying property in Nicaragua

Now that we’ve mentioned some of the reasons why buying property in Nicaragua is a great idea, let’s talk about how to get started.

Find a reputable Real Estate Agent

The first step is finding a reputable real estate agent with great knowledge of the country and the region you’re looking to invest in. Many agents claim to be experts in the Nicaraguan market, but it’s important to do your research and make sure you’re working with someone who really knows the ins and outs of the market.

We advise to contact a few realtors and choose one to work with, as all real estate agents are in contact and can schedule viewings. We also recommend finding a bilingual real estate agent, affiliated to an international real estate company.

Note that in Nicaragua, real estate agents fees are paid by the sellers and not by the buyers.

Explore your property options

Once you’ve found a good agent, the next step is to start looking for properties. Nicaragua is a large country, so it’s important to decide what type of property you’re looking for and where you want to buy it. You might want to ask yourself the following questions:

  • Where in Nicaragua?
  • What lot size minimum?
  • How far from the city, including shopping, hospitals, etc.?
  • A residential or a commercial lot?
  • Raw land, condominium, or house?
  • Beachfront, oceanview, mountain view, or among the trees?

Once you’ve decided on the kind of property you’re interested in, your agent can help you narrow the research and find the perfect one.

Do your research on the best areas to buy in Nicaragua

Some of the most common locations to buy a property in Nicaragua include:

  • San Juan del Sur: This is a great option if you’re looking for a beachfront property. It’s also a popular destination for tourists, so it’s a good place to buy if you’re interested in renting out your property.
  • Granada: If you’re looking for a colonial city with plenty of charm, Granada is the perfect place for you. It’s one of the most popular tourist destinations in Nicaragua, so plenty of properties are available.
  • Managua: Since it’s the capital city of Nicaragua, it’s a great place to buy if you’re interested in urban living. There are many high-rise apartments and condos available with plenty of amenities. It is also close to the international airport, which is important if you need to travel a lot.
  • The City of Leon and Las Penitas: Leon is the cultural center of Nicaragua. With its authentic colonial beauty, museums, universities, shopping, restaurants and festivals, you will easily find a perfect old colonial house with a beautiful courtyard to buy. Just 20 minutes away, you definitely want to check out the endless Pacific beaches of Las Penitas, a small fishing and surfing village with a vibrant life. Why choose between the city or the beach when you can have both here!

Make an offer

Once you’ve found your perfect property, it’s time to make an offer. You will most likely have to put down an earnest deposit before making an offer, to ensure the seller(s) that you are a committed buyer. Negotiations would then be open! Your real estate agent will assist you to negotiate a fair price with the seller.

Sign a purchase and sale agreement

Your realtor will write a purchase and sale agreement contract including the terms and payment method when you agree with the sellers on the property price. This is an important step, and you want to make sure your real estate agent is competent and is familiar with contracts.

You will then have to put a down payment which can be anywhere between 10 to 40% of the property price depending on your negotiations.

Reviewing all the papers and signing the new property deed

Now that you have a signed purchase and sale agreement, you will need to find a lawyer and forward all the required documents:

  • The property title (titulo de propriedad)
  • The property plot map (mapa)
  • Receipt showing that property taxes are paid up to date (solvencia)
  • Receipt showing the HOA fees are paid up to date
  • Purchase and sale agreement with all terms

Finding a Real Estate Lawyer

Your realtor can recommend to you a couple of trustworthy lawyers with experience in selling and buying properties in Nicaragua. Attorneys usually charge 1% of the property value for their fees. All papers need to be checked by the attorney, and the new deed should be ready within 20-45 days.

Usually, a week prior to the closing date, you would have to transfer the remaining balance to an escrow account. You will then meet again to sign the property deed, and the money will automatically be released to the seller’s bank account.

You are now the owner of a piece of property in Nicaragua!

Transfer the Title

Do not forget to transfer the title to your name, in the country register books. This should be included in your attorney fees and can take a month or two after you sign the deed. Transfer taxes in Nicaragua are 2-7% of the property value. It varies depending on the size, location, and property value.

Once this is done, you are all set! You can also check those tips about purchasing property in Nicaragua!

FAQs about buying property in Nicaragua

Q: Do I need to be a resident of Nicaragua to buy a property?

A: No, you don’t need to be a resident of Nicaragua to buy property. However, it is required that you have a valid passport. There are very few hurdles to foreign purchasers when it comes to acquiring a property in the country, and the purchase process is identical for both nationals, residents, and non-residents.

Q: What types of properties are available in Nicaragua?

A: There are many types of properties available in Nicaragua, including beachfront condos, city apartments, city houses, mountain cabins, farms, and land lots of all sizes.

Q: How do I transfer the property’s title into my name?

A: Your real estate agent and the attorney will help you transfer the title of the property into your name. They will also help you with all the necessary paperwork.

Q: Can I hire a property management company to manage my rental property?

A: Yes, you can hire a property management company to manage your rental property. This can be a great way to take care of everything without having to do it yourself.

Q: Do I need to pay taxes on my Nicaraguan property?

A: Yes, you will need to pay yearly property taxes for your Nicaraguan property. The amount of money you’ll have to pay depends on the size, location, and value of your property. If you do not pay your property taxes, the city hall will apply a high fine on overdue taxes. You can also lose your property if you don’t pay your property taxes for 10 years or more.

Q: What is the process for buying commercial property in Nicaragua?

A: The process for buying rental property in Nicaragua is similar to the process for buying a residential property. However, a few extra steps are involved, such as getting a business license and registering your rental property with the government.

Final thoughts

Buying property in Nicaragua is a great way to invest in an affordable, beautiful, and safe country. And with its growth potential, buying property here is a smart investment decision. If you’re thinking about buying property in Nicaragua, be sure to follow these tips to ensure a successful transaction.

Now that you know all about buying property in Nicaragua, what are you waiting for? Start your search today and find your perfect piece of paradise. And if you need any help along the way, be sure to contact a reputable real estate agent specializing in Nicaraguan properties. They’ll guide you through the entire process and make sure everything goes smoothly.

We hope this guide has been helpful. Happy house hunting!