Transaction Tax information.
Extract of law No. 822, LAW OF TAX CONCERTATION
"Article 80 Taxable base of income from real estate capital
The taxable base of income from real estate capital is the net income, resulting from applying a single deduction of twenty percent (20%) of the gross income, without admitting any proof and without the possibility of any other deduction. Gross income is the total amount accrued or received by the taxpayer.
Article 81 Taxable base of income from movable capital
The taxable base of the personal capital income is the net income, which results from applying a single deduction of thirty percent (30%) of the gross income, without admitting any proof and without the possibility of any other deduction. Gross income is the total amount accrued or received by the taxpayer. The tax base of intangible capital income or intangible rights is constituted by gross income, represented by the total amount paid, credited or in any way made available to the taxpayer, without admitting any deduction.
Article 87 Tax rate
The tax rate of the IR to be paid on capital income and capital gains and losses is:
1. Ten percent (10%), for the income generated by the financing granted by international banks with investment grade, according to the regulation that the SIBOIF defines on the matter;
2. Fifteen percent (15%), for residents and non-residents, including Trusts;
3. Thirty percent (30%), for operations with tax havens; and
4. In the transfer of assets subject to registration with a public office, the following definitive withholding rates of the IR of capital income and capital gains and losses will be applied:
How high are realtors and lawyers fees in Nicaragua?
What about other property purchase costs?
Registration Fee 1% buyer
Notary Fee 1.50% - 2.00% buyer
Real Estate Agent´s Fee 4.00% - 10.00% seller
Transfer Tax 1.00% - 7.00% buyer
