Taxes & Law
DGI: 15% VAT (IVA), individual IR (progressive table) and the territorial principle — with sources.
Updated: November 2026
Tax system – overview
- Authority: DGI.
- Territorial principle: IR on Nicaraguan-source income (Tax Concertation Law).
- Tourists without local income usually file no ongoing IR return.
- Double tax: depends on home country.
VAT (IVA)
Per DGI FAQ: general IVA 15%; exports of domestic goods and services abroad 0%.
Individual IR
Per the Tax Concertation Law (employment income):
IR on employment (LCT tariff, orientation)
| Rate | from (NIO) | to (NIO) |
|---|---|---|
| 0% | 0.01 | 100,000 |
| 15% | 100,000.01 | 200,000 |
| 20% | 200,000.01 | 350,000 |
| 25% | 350,000.01 | 500,000 |
| 30% | 500,000.01 | — |
- Rates by bracket.
- Business activity: other regimes may apply — please confirm with the authority.
- Non-residents: withholding may apply — please confirm with the authority.
Practice for newcomers
- Tourist status ≠ tax residence ≠ work permit.
- With local work/business: clarify RUC and DGI registration.
- IVA in daily life; IR only with taxable status/income.
Sources
Disclaimer: This page is for general guidance only and is not legal, tax or immigration advice. Rules and prices change — verify with official sources.