Invest in Tourism

Foreigners may own land without Nicaraguan partners.

The government is now heavily promoting tourism, mainly in the Pacific Area. San Juan del Sur has been receiving an average of 20 cruise boats since year 2000, and this activity is growing, now in both ports of San Juan del Sur and Chinandega. The 2 main tourist areas, are Granada and the south pacific.

Many foreigners are now investing in properties such as beachfront lots, islands in Lake Nicaragua, colonial houses in Granada and Leon, commercial, farms and more… Property prices are still very affordable but grow very fast. A piece of land in the south pacific will cost 4 to 5 times less than a similar piece 20 miles south, in Costa Rica… Don’t forget Costa Rica was once a very cheap country to invest in too, so don’t miss the opportunities in Nicaragua!

For less than one/tenth the cost of land in California, you can buy a beautiful ocean view lot, just a spectacular view, and build a top quality Tropical style home for 25% of the cost of a North American home.

During the administration of Arnoldo Aleman, Incentive programs such as the Law 306 Tourism Investment program were implemented to further encourage investors. In 2001, the third Democratic Free election was held and Enrique Bolaños, a former free enterpriser, was elected under the Liberal banner. Mr. Bolaños immediately has gone to work to enhance the incentive programs and has in a short few months attracted millions of dollars in investments and projects that are now underway.

A high percentage of the investment is realized in tourism activities, for many reasons:

1. The new "Incentive Law for the Tourism Industry" brings all investors, a wide range of benefits and incentives in diverse areas of tourism, including: Hotel Industry, Air Transportation, Water Transportation, Internal and Receptive Tourism, Services related to Entertainment Beverages and Food, Development of Artisans, and many more tourist activities. (See more about the Law 306 below).

2. Land is way cheaper than in other countries such as Costa Rica, Panama or Belize. For these reasons, real estate is booming, many people are now buying beachfront properties, private islands in Lake Nicaragua by Granada, colonial houses in Granada, condos or just land by the lagoons and the Pacific Ocean… Prices are rising at a fast rate; just see what happened in neighbor Costa Rica, completely unknown 15 years ago and now a primary tourism destination! People investing now in lands and investing in the right land are enjoying good profit margins.

During 2000 and 2001, major private tourist projects, have opened in Nicaragua thanks to the incentives provided by the Law 306 is intended to promote the tourist activities under a policy of sustainable development, respect and protection of the environment and cultural heritage. INTUR and some other state organizations are in charge of coordinate and impulse this law.

The investor will get benefits as:

A. Eligibility
The following natural and juridical persons are covered by the benefits.
-Individuals and Companies dedicated to Tourist Activities and related.
-Individuals and companies participating on financing tourist activities through loans and/or investments.

B. Activities
Tourist Activities and related covered by the law are classified as follows:
1) Hotel Service Industry (Hotels, Motels, Apart hotels, Condo-hotels).
2) Investments in Protected Areas of Tourism and Ecological interest, without affecting the environment, with prior authorization from the pertinent authority (MARENA), as well as in public places of tourism and cultural interest; jointly with historical preservation.
3) Air Transportation.
4) Water Transportation (Maritime, Fluvial and Lake Transportation).
5) Internal and Receptive Tourism; and Ground Collective Tourism Transportation.
6) Foods, Drinks and Amusement Services.
7) Investment in filming of motion pictures; and in events beneficial for tourism.
8) Rental of ground and water vehicles to tourists.
9) Investments in Tourism Infrastructure and connected Tourism Equipment.
10) Development of Nicaraguan Crafts; Recovery of Endangered Traditional Industries; Production of Traditional Folk Musical Events and of Folk Dances; and publications and materials for Tourism promotion.
11) Small, medium and mini corporations that operate in the Tourism sector, in all areas of said sector.

C. Projects Location
The projects may be developed anywhere into the Nicaraguan territory. There are also the ZEPDT (Special Zones of Tourism Planning and Development) where the investor may get further benefits such as special financial mechanisms and maximum fiscal exemptions.

D. Minimun Investment Value (U.S. Dollars)

The activities not listed, do not have minimum investment value but are subject to INTUR analysis and approval.

E. Benefits
For the operators or developers of tourist activities

Contact us for further information!