Individual - Taxes on personal incomeLast reviewed - 25 January 2023
Nicaragua taxes its citizens and all residents and non-residents on their income originating in Nicaragua. Taxable income that originates in Nicaragua obtained by non-residents or non-domiciled persons is determined as a percentage of gross income, depending on the nature of the income.
Personal income tax rates
Residents are subject to income tax according to the progressive tax rates shown below:
|Taxable income (NIO*)||Minimum tax charge (NIO)||Tax on excess (%)|
* Nicaraguan córdobas
Non-residents, whether domiciled or not, who receive Nicaraguan-source income are subject to a 20% definitive WHT.