For the answer to this question, which is yes you can drive in Nicaragua with a foreign license, we need to look at Law No. 431 “Law for the Regime of Vehicular Circulation and Traffic Infractions” (With Its Amendments Incorporated – Approved on April 8th 2014 and Published in the Official Gazette No. 96 of May 27th 2014.
In Chapter XIV, under “Driver’s licenses, transit permits and other services”, Article 144 of that law deals with “Authorization to Drive (in Nicaragua) with a Foreign License” and states;
A person holding a driver’s license from another country may drive during the period for which it was issued. If this license expires, you must obtain a Nicaraguan license to be able to drive.
Spanish; Art. 144 Autorización para conducir con licencia extranjera
Las personas que porten licencia de conducir de otros países, podrán conducir durante el periodo para la que fue emitida. Si esta licencia se le vence, deberá tramitar la licencia nacional para poder conducir.
Take away: Don’t let your foreign driver’s license expire unless you are ready, willing and able to complete (in Spanish) the psychological and eye tests as well as the written and practical driving tests.
Categories of Driver’s License
On paper, Nicaragua does not permit foreigners to operate motor vehicles they are not qualified (by license) to operate in their own country. This mostly comes up when visitors ride motorbikes here on the typical vehicle license. The fine for the offence of “Operating a vehicle with a license category other than the one(s) authorized” is 300 Córdobas. However, the policing of this condition and the issuing of the traffic ticket for this offence are generally rather subjective.
A few words about “International Driving Permits”
Nicaragua is NOT part of the 1949 UN Geneva Convention on Road Traffic or any other multi-lateral treaty that governs the use of these documents.
They are NOT licenses; they are translations of driver’s licenses issued by various countries.
Note: Nicaraguans and foreigners with Nicaraguan licenses may need this type of International Driving Permit if they are planning on driving outside of Nicaragua.
There is nothing to stop you buying one on line at any of the web sites offering them for sale. Generally, they are only valid for one year.
Most of the web sites are up front about what they are. However some I’ve read are misleading in the large print but do eventually admit in the small print that you need a valid drive license from your own country and that the so called international permit is only for translation purposes to help the local police or other authorities understand the details on the foreigner’s actual license.
Some countries have integrated these translations into their traffic laws to such an extent that they are now “required” to rent a vehicle in those countries and in some cases to drive at all. However; this is not the case in Nicaragua.
More articles on driving here, including 10 Facts on Importing a Vehicle into Nicaragua (Updated) can be found at this link; Driving.