Legal Update 2025 — Real Estate in Nicaragua

Key Changes & Important Points for Buyers, Sellers & Investors

Updated: June 2025

The Nicaraguan real estate market remains attractive for both national and international buyers. However, several important regulatory updates have been introduced in recent years. If you're considering buying or selling property in Nicaragua, here are the key legal points to know in 2025:

🏦 1️⃣ Strengthened Anti-Money Laundering (AML) Controls

• The UAF (Unidad de Análisis Financiero) now enforces stricter verification of fund origin in all real estate transactions.
• All registered agencies (such as BVN Real Estate) are required to perform KYC (Know Your Customer) procedures on clients.
• Using Nicaraguan bank accounts for payments is now strongly recommended.

📝 2️⃣ Contractual Clarity & Tax Transparency

• The 4% property transfer tax applies to the declared sale price only.
• For seller-financed sales (owner credit sales), interest payments should be excluded from the property value to avoid increasing tax liability.
• New contract clauses recommended:
  • Non-transferability of debt or promissory agreements.
  • Clear payment schedule with deadlines.
  • Penalties for late payments.
  • Full refund obligation if title is not legally registrable.

🏛️ 3️⃣ Public Registry Requirements

• The Public Registry (Registro Público) now strictly enforces:
  • Updated Cadastral Plan.
  • Current Certificate of No Liens (Libertad de Gravamen).
  • Current Municipal Solvency (Solvencia Municipal), including SISCA form.
• These documents must be provided at both Promise to Sale (Promesa de Venta) AND at Closing.

🌍 4️⃣ Foreign Ownership Rights

• Foreigners still have full legal rights to own property outright in Nicaragua.
• No local partner or residency is required.
• Many buyers opt to purchase through a Nicaraguan corporation for estate planning or tax advantages.

🏘️ 5️⃣ Condominium & HOA Regulations

• HOA fees and community obligations must now be:
  • Clearly stated in the sales contract.
  • Accepted in writing by the buyer.
• HOA fees typically start after property title registration.

🏗️ 6️⃣ Construction Permits & Urban Planning

• Municipal building permits remain mandatory for all construction and renovations.
• San Juan del Sur and Tola have introduced new zoning rules in some areas (building height and density restrictions).

🏢 7️⃣ New Regulations for Real Estate Agencies

🔹 INVUR Licensing

• As of April 2024, the INVUR (Instituto de la Vivienda Urbana y Rural) is now the official authority for real estate agent licensing.
• Agencies must obtain an INVUR license (valid 5 years) to operate legally.

🔹 VAT (IVA) Obligations

• Agencies must register with DGI and declare 15% VAT (IVA) on their commissions and service fees.
• VAT returns must be filed monthly.

🔹 AML Compliance

• Agencies must also comply with UAF (AML authority) reporting obligations.

BVN Real Estate is fully compliant:
✅ Registered with INVUR, DGI, and Municipal Business Registry.
✅ AML-compliant with UAF supervision.
✅ Transparent commission disclosure.

✅ Summary — What to Keep in Mind in 2025

• Work with registered agencies only.
• Keep payment records clear.
• Insist on updated legal documents at every stage.
• Understand tax obligations.
• For developments: factor in permit timelines.
• Be prepared for AML checks on your funds.

Sources:

• Nicaraguan Civil Code
• Real Estate Brokerage Law (Law 1199 / 2024)
• DGI Tax Code
• INVUR updates (2025)
• UAF compliance regulations (2025)

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