Nicaragua is the largest of the Central American republics with tourism being one of the biggest contributors to Nicaragua’s GDP.
Business in Nicaragua isn’t yet at the same standard as other countries, but the economy is growing at a steady rate. It’s relatively easy to establish a business in Nicaragua and costs are relatively low. Most major business is conducted in the bigger cities or free zones, but the only restrictions on business placement are regarding its 78 nature reserves.
The country’s population earn low wages, which mean new business is welcomed and encouraged, particularly for companies hiring local workers. Export or tourism related businesses are a better option than relying on cash-poor local markets.
Nicaragua’s Free Zones generally allow companies to greatly reduce their operating costs with a 100% exemption from payment of Income Tax (IR) during the first ten years of operation, as well as exception from custom duties and other taxes such as municipal taxes and sales taxes, among others. Companies must export 100% of the total sales of their goods or services, among other requirements, to be eligible for the Free Zone system.
Working with knowledgeable experts in this region will be advantageous for those looking to expand or invest.