In Nicaragua, tourism brought in almost $200 million in 2005, according to the Nicaraguan government. This is more than any other single industry in its $5 billion economy. Tourism has recently surpassed Coffee exportation, the countries next leading revenue resource by over $71,000,000 ($189,000,000 vs. $260,000,000 for 2006). Furthermore, the profile of visitors has shown a marked shift from budget tourists to more affluent and sophisticated travelers and higher-end hotels in tourist areas show consistently high occupancy.
In Nicaragua, tourism and foreign investment have been steadily increasing for the last 5 years. Areas attracting the most tourism are also generating the greatest levels of real estate activity. For certain real estate products, the link between tourism and real estate is particularly direct and immediate. San Juan Del Sur in south western Nicaragua is a perfect example of this correlation.
Furthermore, the Nicaraguan government understands this connection. It enacting the Tourist Incentive Law No. 306 (September 1999) for tourism related services/business’s. In summary this law allows for:
- No payment of income taxes for up to 10 years.
- No payment of real estate taxes for up to 10 years.
- You can import or locally buy all the supplies you need to start your business tax free.
Incentives for business’s that will create more tourism, is good for the real estate and good for investors.
