Doing Business in Nicaragua

Although Nicaragua is the second poorest country in the hemisphere it is a great place for investment.  Nicaragua has tailored its laws to attract international investors.  There are many local tax breaks for those opening up businesses geared for tourists.

Nicaragua Magazine Online Business in Nicaragua

Along the coast surf camps are opening up wherever there are decent waves.  These businesses are attracting surfers from around the world.  These surfers go back to their homes and tell there friends about how great Nicaragua and its waves there.  This is helping erase the bad stigma that surrounds Nicaragua.  Nicaragua is viewed as an unsafe country and definitely not place where you would want to invest.  However, even though Nicaragua does have its challenges, it is on its way up.

In addition to the favorable tax breaks, among the advantages Nicaragua has for entrepreneurs includes:  inexpensive land compared to other countries, lower labor costs, friendly and hard working people.  For those needing land to open a factory or need a piece of beach land for a small hotel they want to build lower land cost can make a huge impact on the total cost of getting the business up and running.  Land will be more expensive along the coast but it is still much less expensive than other countries.  For those wanting to build a factory or a business center land can be found at an affordable price around Managua.

Labor costs can also have a direct impact on whether or business is profitable or not.  Because Nicaragua does not have any minimum wage laws there is not the high costs for hiring employees a there would be in the US.  Unskilled labor can cost from $100 to $200 per month.  Some companies may try and get away with paying less but we try to encourage investors to pay market rates for employees.

Nicaraguans as a people are among the friendliest most helpful in Latin America.  Whether you are a pulling over for directions or hiring them they are more than glad to help out.  Some may think that is not a big deal but for those who have traveled and worked in many countries know it makes a huge difference.  Because Nicaragua has a low employment rate, most are very grateful when they do have a job.  They will work hard and be extremely loyal.

Just because Nicaragua is a great place to do business is does not necessarily mean you do not do your due diligence.  Some tips include being careful on how much money you carry on hand.  Just because you have loyal workers does mean they are not human and will not be tempted by money lying around in places accessible to them.  Consider getting a safe for the work place and home.  Keep the valuables and money inside there. Also be careful when you purchase property in Nicaragua, you want to make sure all the paperwork is in order.  Both yours and the ones you are purchasing from.  Consider talking to others who have purchased land to look over the paperwork.  You may have to hire an attorney who is an expert property title exchanges.  This protects you from buying land from someone who is not the legal owner of that property.  The reason behind these property title problems is a result from the Sandinista government taking over the rights of 28,000 property titles in the 1980’s.  As long as the right steps are taken purchasing property should not be a problem.

*Comment below and let us know what you think of the magazine and what you would like to see added.

Speak Your Mind

*