Americas · NIO
Nicaragua
Reviewed 2026-06-21
Top income tax
30%
Self-employed SS
Optional
VAT
15%
Capital gains
15%
Exit tax
No
Nomad visa
No
64
/ 100
Tax efficiency58
Ease to enter50
Ease to exit93
Cost of living95
Internet9
English60
Nicaragua taxes only locally sourced income on a territorial basis, so foreign earnings of a solopreneur generally stay outside the net unless tied to a Nicaraguan source or routed through a local company. Personal income tax runs progressively from 0 percent up to 30 percent, the corporate rate is 30 percent, and VAT is 15 percent. There is no wealth tax and no CFC regime, but social security employer costs are high and there is no dedicated digital nomad visa, with investor and fixed income residency routes serving long stayers instead.
Personal income tax
Income tax structureProgressive
Top income tax rate30%
Entry income tax rate0%
Top rate threshold$13,600
Taxation basisTerritorial
Local/state income taxNo
Social security
Self-employed social securityOptional
Employee SS rate7%
Employer SS rate21.5%
Indirect & other taxes
VAT standard rate15%
Capital gains rate15%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxNo
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency180 days
Corporate
Corporate income tax rate30%
WHT on dividends15%
CFC rulesNo
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaNo
Entrepreneur visaYes
Ease of setup2 / 5
Lifestyle
Cost of living index25
Internet speed51 Mbps
English proficiencyMedium
Civil liberties20
Sources
- PwC Worldwide Tax Summaries — Nicaragua Individual Taxes on personal income
- PwC Worldwide Tax Summaries — Nicaragua Corporate Taxes on corporate income
- PwC Worldwide Tax Summaries — Nicaragua Other taxes (VAT, social security)
- PwC Worldwide Tax Summaries — Nicaragua Corporate Withholding taxes (dividends)
- EF EPI 2025 — Nicaragua fact sheet
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.