Nicaragua

Individual - Taxes on personal income

Last reviewed - 08 December 2019

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 (%)
Over Not over
0 100,000 0 0
100,000 200,000 0 15
200,000 350,000 15,000 20
350,000 500,000 45,000 25
500,000 and above 82,500 30

* Nicaraguan córdobas

Non-residents, whether domiciled or not, who receive Nicaraguan-source income are subject to a 20% definitive WHT.