Tax Exemptions
For  Investments  in  Tourism Industry
at  NICARAGUA (law 306) 

VIII.  INVESTMENTS  IN  TOURISM

The Decree No. 520 of 1960, Decree on Hotel Investments, declares of national interest any capital investment in hotel constructions or entertainment centers that promote tourism, provided that the investment is not less than 200,000 cordobas (US$ 15,000) in the Departments of Carazo, Granada or Rivas, or 300,000.00 cordobas   on the Atlantic Coast.

The following benefits and exemptions are granted to the investor:²³

a) Tax exemption on the capital and income tax for a term of 10 years starting on the date that the Tourism Institute certifies that the corresponding center has started its operation. Likewise, the investor is exempted from direct tax on capital during the period within the execution of the project and the date the center starts its operation.

b) Custom duties and consular fees exemption on the importation of all kinds of materials, equipment, goods, furniture, machinery, and articles exclusively assigned to the construction of the center and its annexes, and also for its maintenance.

c) Exemption of the obligation to make prior deposits for its import and authorization to make use of foreign credits.

The Municipalities tax plans for these type of investments will be adjusted to the spirit of Decree 520, in order not to levy tourist investors similar municipal taxes that are described and exonerated above.