Last reviewed - 23 January 2024

Nicaragua is the largest country in Central America, bordered by Honduras to the north, Costa Rica to the south, the Pacific Ocean to the west, and the Caribbean Sea to the east. It became an independent republic in 1838, and Managua is the capital city. The official language of Nicaragua is Spanish, and its currency is the Nicaraguan córdoba oro (NIO).

Currently, 76.1% of the population is younger than 40, and elementary, high school, and university education are mandatory, the first two being free. There is one Nicaraguan branch of a United States university that has been accredited by the Southern Association of Colleges and Schools (SACS). The Nicaraguan government is increasing funding to improve educational opportunities in the country and has promoted increased enrolment in universities.

All schools, including elementary and high school, are under the general supervision and regulation of the National Ministry of Education.

In early 2004, Nicaragua secured 4.5 billion United States dollars (USD) in foreign debt reduction under the Heavily Indebted Poor Countries (HIPC) initiative, and, in October 2007, the International Monetary Fund (IMF) approved a new poverty reduction and growth facility (PRGF) program.

Nicaraguan expects an increase in the gross domestic product (GDP) of between 3.5% and 4.5% in 2022, after having experienced a 10.3% increase in 2021. The above contrasts with the consecutive decreases of -3.4% in 2018, -3.7% in 2019, and -2% in 2020. The US-Central America Free Trade Agreement (CAFTA) has been in effect since April 2006 and has expanded export opportunities for many agricultural and manufactured goods. Textiles and apparel account for nearly 60% of Nicaragua's exports.

PwC Inter-America is a regional entity integrated by seven firms: PwC Guatemala, PwC El Salvador, PwC Honduras, PwC Nicaragua, PwC Costa Rica, PwC Panama, and PwC Dominican Republic. Together, we have over 1,000 professionals ready to provide our clients with audit, tax, legal, and consulting services. Inter-America firms are backed by over 40 years experience rendering a high standard of professional services to the private sector, public sector, and non-profits. PwC Nicaragua supports clients with the local knowledge and skills of its people and with access to a broad range of other professionals across the PwC global network of firms.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)


Corporate income tax (CIT) due dates
CIT return due date

Within the following two months after the fiscal year-end.

CIT final payment due date

Within the following two months after the fiscal year-end.

CIT estimated payment due dates

Monthly advance payments.

Personal income tax (PIT) rates
Headline PIT rate (%)

Residents: 30;

Non-residents: 20

Personal income tax (PIT) due dates
PIT return due date

90 days after year-end

PIT final payment due date

90 days after year-end

PIT estimated payment due dates


Value-added tax (VAT) rates
Standard VAT rate (%)


Withholding tax (WHT) rates
WHT rates (%) (Dividends/Interest/Royalties)

Resident: 15 / 15 / 15;

Non-resident: 15 / 15 / 15

Capital gains tax (CGT) rates
Headline corporate capital gains tax rate (%)


Headline individual capital gains tax rate (%)


Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)


Inheritance and gift tax rates
Headline inheritance tax rate (%)


Headline gift tax rate (%)


NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.