A regulatory environment conducive to starting and operating a business is evidenced in the ease with which we purchased the island and in the significant numbers of expat business owners in Granada (hoteliers, restauranteurs, bakers, contractors, apartment owners, etc). While there are regulations, they are transparent and reasonable provided one follows the rules and files appropriate documents. There are many competent lawyers who understand the process and local customs who can help every step of the way and at reasonable costs. For our project, we will need municipal and environment ministry construction permits. Upon opening, we will need permits to operate a hospitality business (hotel, restaurant, and bar). We will need to pay appropriate business and employment taxes.
Unlike many other countries in Latin America (Mexico, Costa Rica, etc), foreigners can outright own property in Nicaragua with equal rights as a Nicaraguan national.
Several years ago, Nicaragua passed Law 306 which provides significant tax abatement for tourism businesses for a 10 year period. We discuss the details and specific benefits of this law in this article.