Auxadi Nicaragua
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.
Nicaragua
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.
Why Auxadi is trusted as an expert outsourcing provider in Nicaragua
Auxadi is your ideal partner in Nicaragua, providing expert accounting, tax and payroll services to help you with your international expansion and investments. With a strong presence in all Central America markets and expertise on the ground, we can help make your life easier.
Launching an entity in Nicaragua can take just five days, well below the regional average of 31 days, thanks to the Single Window of Investments (VUI), which allows multiple registrations to be completed on one portal.
New companies require a Notary Public to prepare the Act of Incorporation and Statutes of the Company, obtaining signatures of the partners and authorising the public deed. New companies must also obtain permits from municipal and tax authorities, and set a lifespan; by law, a maximum of 99 years.
We operate a single-point-of-contact delivery model and give you access to leading technology to offer our services in Nicaragua, which include:
International Accounting, Tax and Payroll in 50 countries
Corporations
We can help you with your international expansion and we serve more than 600 clients across many different sections. We become an extension of your finance departments abroad and you can access the accounting information of all your international subsidiaries through a single portal, customised to meet your needs.
Funds
With nearly $7 billion of assets under management, we can take of the corporate management and SPV administration of your investment structures. Whether you’re creating a holding structure in Luxembourg or setting up a SPV in Europe and Latin America, we offer accounting, reporting, tax compliance and directorship solutions to help make your life easier.
Our services
Tax Specialists
Nicaragua’s fiscal year matches the calendar year. Administering the tax regime will require some 200 hours to navigate the 43 payments required each year.
The corporate income tax rate in Nicaragua is 30%, and VAT is 15%. Nicaragua hasn’t signed any double taxation treaties.
We’re experts in international taxation and can help you to comply with the local tax requirements in Nicaragua, using our purpose built automation technology, so you and your operations remain tax compliant.
- Tax compliance – covering multinational, federal, state, and municipal taxes
- Official Books and Annual Accounts
- Assistance with tax inspections and audits
- Tax reviews and claims
Accounting Specialists
Nicaragua uses the IFRS system, including IFRS for SMEs. All ledgers must be kept in Spanish, translated if required, and companies must keep inventory ledgers, balance sheets, daily and general ledgers, and a corporate stock ledger. The books must also be bound, with each page bearing the stamp of the Department of Commerce registration office.
There are no audit obligations, though financial institutions are required to obtain audited financial statements for loans over $750,000.
We help global corporations and fund managers with all their corporate accounting requirements. Using our bespoke and best-in-class technology platform, MySPV, you can have full access and control of your accounting data, anytime and from anywhere.
Our accounting experts in Nicaragua can help manage:
- Accounting and bookkeeping
- Management accounting
- Statutory accounting
- Official Books and Annual Accounts
- Cash management (including payments)
- Reporting
- Consolidation of finanical statements
- Bank account tracking
- Treasury and cash flow forecasts
- Audit assistance
Payroll Specialists
Nicaragua’s minimum wage rates are dictated by sector and reviewed each year. While the Labour Code does not require companies to distribute profits to workers, a thirteenth month payment is due each December.
Rules around foreign workers are strict, and each work permit must be linked to a specific sponsorship and role.
As well as the normal Social Security charges, Nicaragua also demands a Technical Education Tax to the support and development of technical education in Nicaragua. Employers are obliged to pay 2% of the worker’s monthly gross salary to the National Institute of Technology (INATEC), which provides training at low prices.
Our payroll specialists in Nicaragua can help you manage your international payroll function with ease.
Monitor and manage your international subsidiaries with our MultiCountry online platform
Access our online platform that provides you with a global and harmonized view of the accounting of your international subsidiaries, with drill down functionality to check support documentation, such as: invoices, outstanding creditors, approve payment orders, manage the payroll processing cycle and so much more. Request a demo to see how our technology can help you.
Get access to Auxadi corporate materials and technical guides to know more about us.
Meet the team
Manrique Blen
Director HUB Costa Rica
Auxadi in Nicaragua
Centro Financiero Invercasa,
Torre 2, 5to piso, oficinas 502
14173 Managua
Tel: + 505 7517 5252
Count on our professional and extensive experience in the Nicaraguan market, for your investments in Nicaragua and elsewhere in Europe, the United States and Latin America.