“I am a foreigner thinking of investing in Nicaragua and would like to own the property where I will conduct business. Can I do that as a foreigner?”
The good news is yes you can and the constitution and a special law support your rights to property ownership when investing in Nicaragua.
Constitution
The Constitution of Nicaragua gives rights to property ownership and foreign property ownership in various Articles of the law. They include Article 5; the recognition of different forms of property, Article 27; Foreigners have the same rights and duties as Nicaraguans and finally, Article 44; the right of private ownership of (properly registered) movable and immovable property.
Investment Law
As comprehensive as all that is, there is also a special law called the Foreign Investment Law, Law 344 which came into law on the 24th of May, 2000. (All laws in Nicaragua have a number, making it easier to search for the one you want)
This law replaced the old Foreign Investment Law (No. 127) from 1991 which was repealed by Law 344 and updates the rights and obligations of foreign investors who contribute to the economic and social development of the country. This law makes it very clear that foreigners in Nicaragua have equal rights to property ownership.
Restrictions
Without complicating the above very clear statements, there are laws that do restrict certain property ownership. The coastal law (generally prevents private ownership of a strip of property 50 meters from the median high tide mark), the border protection law (protected zones at the borders where property cannot be owned by a foreigner) and also laws relating to concession property (leasehold as opposed to actual ownership). Remember that some ownership could have been “grandfathered in” as the general principle of Nicaraguan law is that new laws cannot affect legal rights that were previously granted.
Legal Advice
Our information is provided for your general information and should not be considered as legal advice. However, what it is designed to do is to give you information that can help with your decision making process when consulting with your legal or other professional advisors.
