- June 16, 2022
- Posted by: saenicsa
- Category: International, Investments, Publication
According to the current legislation on immigration there are two kinds of residencies:
Permanent: Which is granted for five years. Retirees, Rentiers and Foreign Investor receive this kind of residency. Those who receive it are not required to make a deposit equivalent to a one way ticket to return to their countries.
Provisional: It is granted for one year and for those who receive it is mandatory to make a deposit equivalent to a one way ticket to return to the country of origin. Businessman, workers, missionaries and spouses receive this kind of residency.
The law states there are different ways to apply for residency, for the purpose of this article we will refer to the most common:
Residency as Foreign Investor
Foreign investors can apply for residency if applicants run a business, incorporate a corporation and invest at least $30,000 in Nicaragua in any sector or economic activity.
It is imperative to follow several steps and a Government Appraiser the Ministry of Development, Industry and Commerce (MIFIC) will confirm the investment by visiting the place where the investment is. Once MIFIC grants an endorsement’s certification for the business, the applicant will be able to apply for a five-year.
Click here to find out more information on: Starting a Business in Nicaragua
The endorsement would cover the shareholders or investor; and the investor’s family members.
Foreign Investments – for residency purposes in Nicaragua – is when foreigners invest their money in properties or goods for business.
A vacation home is not consider Foreign Investment, unless this house is used for business/rent and is handled by a Corporation.
Residency as a Businessman
This option can be considered when applicants cannot invest more than $30,000 stated above. Some companies do not need to invest so much money. A Real Estate Agency for example.
In that case, according the law to obtain the ID of the DGI (Nicaraguan tax and Revenue Office) foreigners have to run a business through a Corporation or Sociedad Anónima.
Applicants receive a Provisional Residency per one year.
Residency as a Retiree
A retiree according the law 694 is a person who receive from abroad a monthly pension from the government (social security administration or any other agency) or from a private company. The monthly pension has to be over $ 1,000 per month.
Residency as a Rentier
Rentier is a person living on income from property or investments. The law states the applicant has to receive $ 1,250 as a minimum per month. Salaries do not apply in any either cases.
Savings in banks do not apply, unless the applicant receives from his/her bank a letter confirming monthly installments for five years to the owner.
Both sub categories – Retirees and Rentiers – have the same benefits.
The Law “694” states that the minimum age is 45 years old to apply as Retiree or Rentier. There is an exception only for people with a disability pension.
Retirees and Rentiers are not allowed to work in the country.
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Residency as an Employee
Some companies hire foreigners to work, especially for upper management positions. In that case the company has to provide all legal documents to the application and sign a labor contract with the employee.
The labor contract has to be certified by the Labor Ministry of Nicaragua.
Residency as a Missionary
The Immigration law considers missionaries to those who work for a domestic NGO or a foreign NGO, in that case the NGO has to be duly register at Ministerio de Gobernación de Nicaragua (MIGOB). For that purpose, the NGO has to endorse the application and provide all the legal documents – copies – from the organization.
Residency as a Spouse
To be able to apply for residency as spouse it is mandatory to prove the foreigner has been married to a Nicaraguan for at least two years or longer at the time of the application. The applicant has to show proof of income; it could be:
The Nicaraguan spouse supports the applicant; in that case the Nicaraguan spouse has to have a job.
The foreigner has a job or business in Nicaragua. In that case he/she has to prove and provide legal documentation of it.
Become a Citizen of Nicaragua
To be able to apply for citizenship is mandatory to be resident first, for four years as minimum. The applicants have to follow a new process. It is not automatic and Nicaragua has the right to deny it.
In Nicaragua, there is no citizenship for investment.
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