Law 306 was created to encourage tourism investment in Nicaragua by both foreign and Nicaraguan investors.
For El Espino, Law 306 will provide the following tax incentives for 10 years after permission to use the provision is granted:
- Reduction or elimination of income taxes
- Reduction or elimination of property taxes
- Reduction or elimination of sales taxes and import duties (tariffs) for any materials, equipment or supplies required for construction and operations of the business, everything from screws to sailboats, from towels to toilet seats.
An attorney specialized in such matters will need to facilitate the 306 application to the Tourism (INTUR) and Trade (MIFIC) Ministries.
The following documents will help prospective investors to better understand the implications and tremendous benefits use of the law provides:
- English translation of Law 306: http://www.aurorabeachfront.com/nicaragua/nicaragua-law-306.php
- Interpretation of the law: http://www.laislagroup.com/docs/law306.pdf