Buying Real Estate in Nicaragua: The country has one of the fastest-growing economies in the region, in fact, all of the US, with an economic growth rate of 5.2% in the last 5 years. In addition, the tourism industry in Nicaragua is growing at a rapid pace, with the country welcoming 1.4 million foreign visitors into its range in 2015, generating a total of $ 450 million.
For an investment property, Nicaragua real estate is a major destination. In addition, the amazingly low cost of living in Nicaragua makes it an evenly attractive destination for vacation, full-time living, or buying retirement properties. Buying real estate in Nicaragua has many, many attractive sides.
For those wanting to buy real estate in Nicaragua, there is great news. Not only a very low price, but the market looks incredibly promising in the future. Moreover, there is no restriction on immigrants owning real estate in Nicaragua, making Nicaragua an appealing country in which to spend on real estate.
For foreigners wishing to buy real estate in Nicaragua, one of the first places to start is a reliable Nicaragua real estate agent as well as a trusted lawyer. Both of these are necessary.
A real estate agent will help you find the right property that you want. In addition, they can help ensure that you get a good deal. A good lawyer is important because the legal process of purchasing real estate in Nicaragua can be a little complicated.
For example, you have to make sure that the seller has the legal rights to sell the immovable property you sold. A lawyer can also conduct a title search to ensure that the land is not involved in any kind of legal Controversy.
This will make it easier for most European, as well as most Latin American buyers to navigate. However, purchasers from the United States, Canada, Great Britain, and many other countries, all of whom have common law and order, may differ slightly from those who use it. Keep this in mind when purchasing real estate in Nicaragua.
Purchasing title insurance is strongly advised when purchasing real estate in Nicaragua. Some firms provide the right insurance for international real estate owners in Nicaragua.
One thing that must be understood when purchasing real estate in Nicaragua is the idea of ​​a Cadastral.
Cadastral is the value paid to a piece of real estate that is often much less than its actual value. The reason for this is to keep tax on property, such as transfer tax, less.
Buying Real Estate in Nicaragua
Some of the required documents include:
- A public deed is required to conduct all real estate transactions in Nicaragua. Public deeds should be written in Spanish. If you do not understand the language, you should appoint a translator.
- Historically, an NOC has been required to purchase state-owned property, which is a coastal property, as well as some other qualifications that may require an NOC.
- From the seller, the real estate agent will need a copy of the deed.
As a foreigner, the process of buying real estate in Nicaragua
You will find a reputable real estate agent who likes and trusts you. Once you find a piece of real estate that you want to buy, you will want to discuss real estate with a reputable, local lawyer. You want your lawyer to conduct a title search on real estate, to ensure that there are no legal issues associated with the property.
You will also ask your lawyer to make sure that the seller is the legal owner of the real estate, and that you have the legal right to sell the real estate.
You should also have a survey of real estate, the boundaries of real estate are clearly defined so that you know what you are buying, and so that there is no dispute over what you are buying.
A surveyor’s map must be duly approved by the cadre office. Your lawyer should also ensure that the public deed transfers possession and ownership. You will need to obtain the documents listed above, if applicable, as well as possibly other documents that your real estate agent and/or attorney will notify you of.
When the purchase is finalized, you can expect the following charges:
- Attorney fee: 1-1% of the purchase price
- Title registration fee: 1% of the incremental value
Transfer tax or property benefit tax is:
- 1% of the total amount under 50k
- 2% of the total amount between 50-100k
- 3% of the total amount between 100-200k
- 4% of the total amount when it exceeds 200k
- These are usually paid by the seller, but can also be paid by the buyer
- In addition, a 10% deposit is typically held by the real estate agent when the offer is accepted by the seller and until the final closing. This deposit should not go to the seller.
- Once the fee is paid, it will usually take 1-6 months for the property to be registered. If a no-objection letter is required, it may take a little longer, usually 6–8 months.
An important aspect of purchasing real estate in Nicaragua
Those who live in Nicaragua or at least know their real estate in Nicaragua are the best deals, those who are reputable real estate agents, and those who are respected lawyers. Depending on what you are looking for, an area or development that other foreigners have bought is a good sign.
If other foreigners are considered eligible to do business with a region or developer, chances are you will too. If a region or developer does very little business with foreigners, it does not mean that as a foreigner it is not a good idea to buy real estate there, but you want to ask yourself, or other foreigners Yes, why have they not bought there?
If you are interested in development in Nicaragua, it is important to buy what you see, not what you promised. Any developer can say that they will install reliable power, plumbing, and internet. Follow this with a few selections. And a select few will still have all these things. While developing in Nicaragua, buy on what you see, not what you promised.