I was recently asked about the new income requirements under Nicaraguan residency for Pensionado and Rentista categories and whether or not residency renewals were “Grandfathered in” under the old amount.
The brief answer is that since February 28th 2019, all new applications fall under the amended law which means the minimum income requirement for a pensioner (pensionado) is now US $1,000 per month and for a rentista (someone living on a permanent stable income generated abroad) it’s US $1,250 per month.
Those who have previously obtained their residency status under the old amounts (US $600 as a Pensionado and US $750 as a Rentista) are indeed “Grandfathered in” and can renew their residency under those older income guidelines.
For more information, here is a link to information from Paul Tiffer, a bi-lingual lawyer in Managua with more than 20 years of experience in Nicaraguan residency applications and renewals and who confirmed the “Grandfathered in” clause as above.
Note: The common legal position taken by Nicaragua when introducing a new law is to create an exception where a person who qualified for something under an older law can continue to do so even though they would be prevented by the new law.
History
The law to promote income from “Pensionado and Rentista” residents (Law 694) was introduced in August of 2009.
The aim was to attract this financially secure demographic to Nicaragua by offering a residency program as well as granting incentives and tax benefits (e.g. no tax on foreign income) to those that qualified for this category.
As with many other countries with this type of program, the pensioner segment is made up of people who have reached an age where they receive sufficient pension funds (pensionado) or as in the case of a rentista, have their own verifiable private income from abroad by way of investments, annuities etc.
In 2009, under Law 694, the minimum monthly income for a pensionado was set at US $600 and a rentista at US $750.
Changes to Income Requirement
In February 2019, Law 987, The Law of Reforms and Additions to Law No. 822, Tax Agreement Law came into force and changed the income requirements for Nicaraguan residency.
The “Article 2 Definitions” in Law 694 were changed to read;
Pensionados who enjoy a retirement pension from governments, public or private institutions will need the equivalent in national currency of the minimum amount of US $1,000 per month if they wish to reside permanently in Nicaragua.
Rentistas who enjoy a permanent stable income generated abroad will need the equivalent in national currency of the minimum amount of US $1,250 per month if they wish to reside permanently in Nicaragua.
See also: Investor Residency Nicaragua by Opening a Business
