Everything Ready to Invest in Nicaragua: Regulations of the Law that Protects and Promotes Foreign Investment Have Been Published

On June 4, 2025, La Gaceta, Official Gazette No. 99, published Decree A.N. No. 8902, which approves the Regulations of Law No. 1240, the "Foreign Investment Law." These Regulations transform the general framework of Law 1240 into an applicable and enforceable system, providing a key legal guarantee for foreign investors.

This new instrument eliminates legal uncertainty, streamlines administrative processes, formalizes rights, strengthens institutional support, facilitates the attraction of international capital, and activates tangible benefits.

All foreign investments must be formally registered with Nicaragua’s Ministry of Development, Industry and Trade (MIFIC), through the General Directorate of Foreign Investments (DGIE). Registration is open to foreign individuals and legal entities, as well as Nicaraguan-incorporated companies with foreign capital.

To complete the registration, a minimum investment of USD $50,000 is required. Investors must fill out the necessary forms, submit the corresponding legal documentation, and demonstrate the origin of funds and their business plan.

Once all documentation is verified, MIFIC issues a Foreign Investment Certificate to the applicant.

It is important to note that the DGIE is the specialized unit within MIFIC responsible for managing, registering, and monitoring foreign investments. This institution is in charge of issuing investment certificates, maintaining official records, requesting reports, providing institutional support to investors, and ensuring compliance with the Law. It also serves as a technical information center regarding the legal framework and investment sectors in Nicaragua.

The new Regulations also recognize reinvested profits in Nicaragua as additional foreign capital, allowing for extended benefits, simplified repatriation of funds, and enhanced accounting and tax robustness.

Main Benefits of Registered Foreign Investments:

• National treatment: equal rights and obligations as local investors.
• Free transfer of profits and capital: repatriation without restrictions.
• Access to dispute resolution mechanisms.
• Tax benefits and institutional support.

However, non-compliance may lead to:

• Revocation of benefits.
• Fines.
• Potential loss of legal protection.

Key Principles Reinforced by the New Regulations

As previously mentioned, the fundamental principles underpinning this legal framework include:

• National treatment: equality with local investors.
• Free transferability: unrestricted repatriation of capital and profits.
• Access to arbitration: right to use national and international dispute resolution mechanisms.

At CALA, we have a team of corporate lawyers specialized in both domestic and foreign investments, ready to assist you with the registration of your investment, company formation, legal structuring, permits and licenses, and arbitration procedures.

For more information, please contact us at info@calalawyers.com or visit our website: www.calalawyers.com