Becoming a Resident
You don’t have to be a resident in Nicaragua to purchase property here or to start a business. Many people elect not to get a residency permit (cedula) but there are some limitations to remaining in the status of a tourist. Tourists are not technically allowed to open a bank account, register a vehicle or own a firearm. You have more rights as a permanent resident than a tourist. If you plan to reside for an extended period of time in Nicaragua it is a good idea to apply for residency.
Once you are a resident of Nicaragua, you need an exit visa to leave the country but it is not difficult to get and most of us simply get it at the airport when we leave. Foreign residents can also get a permission slip from the government that allows them to leave and enter as much as they like during a one year period.
The bad news is that it can be tricky getting the residency. Everyone seems to have a different experience regardless if you use a good lawyer or an expediter. There are a few people that will tell you they had no problems but I don't believe them.
When you do your second five-year residency you can choose to be a citizen. There are advantages and disadvantages but it is legal to have both a USA and a Nicaraguan passport.
Residency Assistance
Patricia Sanchez Quintero Speaks English
patriciasanchezquintero@gmail.com
8950-8211 2280-6990
Dr. Hugo Rodrigues Flores
email: seare5@hotmail.com
phone: 8867-9241
Paul Tiffer Speaks English
Abogado y Notario Público
Tiffer & Asociados
Reparto Bolonia Hospital Militar 1c. al lago, 1c. abajo Cel.: 8884-1652; Tel.: 2266-8622
Managua, Nicaragua E-mail: ptiffer@cablenet.com.ni
Dr. Zaira Guadamuz Speaks English
Phone 8880-7769 www.nicaragua-legal.com
Updated Information on Types of Residency
October 2012
Nicaragua is receiving more and more foreigners who want to live here for a variety of reasons. For aspiring expats, one of the most important steps to moving abroad is learning how to do so legally, and that means applying for residency.
Applying for residency in Nicaragua can be difficult for many people due to lack of information or confusion over the application process. Immigration officials can be hard to deal with and difficult to understand if Spanish is not your first language.
It is imperative to know that there are several ways to apply for and obtain residency. They are:
Foreign Investor. According the law, any foreign investor can apply for residency if he or she runs a business, is forming a corporation and will invest at least $30,000 in Nicaragua in any sector (tourism, real estate, agriculture, energy, mining, communication, importation, education, fishing, natural resources, transportation etc.).
An appraiser from the government must confirm the investment by visiting both the property and company. Once the government’s Ministry of Development, Industry and Commerce (MIFIC) approves your business, you can apply for a five-year residency as a Foreign Investor. The approval will cover the shareholders or investor (Nicaragua Corporations require a minimum of 2 members). The foreign investor residency also extends to the investor’s family members. Applicants from the People’s Republic of China are subject to additional approvals.
Pensioner or Rentista: This category is for people who receive a pension from abroad of more than $600 per month. A rentista is anybody who has a private income of more than $750 coming from investments such as stocks, bonds, or any kind of revenue. Salaries do not apply.
There are several benefits for this category. The most important are: Residency for five years; Tax exemption to import household goods valuated at $20,000 and tax-free import of a vehicle valuated at $25,000 CIF (the vehicle can also be bought locally in Nicaragua and the tax exemption will still apply).
Employee. A company can support the residency application of its employees by submitting copies of its legal documents in Nicaragua. For employees, Immigration usually grants a provisional residency for one year. Upon the third renewal, it can be extended to five years.
NGO, Missionary. The NGO must support the application and submit copies of the legal documents in Nicaragua. For missionaries and NGO workers, Immigration usually grants a provisional residency for one year.
Spouse. Foreigners married to a Nicaraguan can also apply for residency by providing a marriage certificate.
In all cases, the applicants for residency must provide the following supporting documentation:
1. Birth Certificate
2. Police Record
3. Health Certificate
4. Copies of the Article of Incorporation (for investors)
5. Pension letter (for retirees)
6. Marriage Certificate (for spouses)
All documents must be from the applicant’s country of birth and must be authenticated by the nearest Nicaraguan Consulate in the country where the documents were issued. To get authentication in the United States, documents must be notarized (some States doesn’t notarized official documents) and authenticated by a County Clerk or Secretary of State.
Since there are no Nicaraguan consulates in Canada, Canadians must have their documents authenticated in Canada and then sent to the Nicaraguan Consulate in Washington, D.C. In some cases, documents can also be legalized in the Canadian Consulate in Managua, so it advised that applicants inquire beforehand.
Once documents are authenticated in the country of origin, they must be authenticated by Nicaraguan officials in the Nicaraguan Foreign Affairs Ministry and translated into Spanish with a Nicaraguan Notary to be submitted to Immigration. It is important to note that even foreigners who have been living here for years will still need to provide all the documents from their country of origin (a Nicaraguan police record doesn’t count for first-time applicants, even if they have been living here for years as a tourist). In all cases, no documents can be submitted without all the proper authentications.
It’s also worth noting that police records and health certificates have an expiration date after five months for pensioners applying for residency through INTUR and six months for everyone else.
There are two types of provisional residencies: 1 year and 5 year (which is considered “permanent”). Some residencies allow the right to work in Nicaragua and others don’t. Residency under the category of pensioner or rentista does not allow in-country work.
Length of Process:
It is not easy to estimate how long it will take to obtain residency in each of the categories, but here’s a general idea:
As an Investor, the Incorporation of a Corporation can take around 3- 4 weeks, the inspection takes another 2-3 weeks and then usually another week for the report and certification. With the certification the applicant must submit the rest of his or her documents – police report, birth and health certificates. Then Immigration will have between 45 – 60 days to issue the Residency Card. So the whole process can take anywhere from 3 to 6 months.
It takes about the same length of time for a Pensioner or Rentista. According to law, INTUR and Immigration officials are supposed to hold a Committee meeting once a month for new applications. However, oftentimes they only meet every other month. Then Immigration has 45 – 60 days to print the Residency Card. With the INTUR certification, the applicant can import household goods and the vehicle (my advice is do not import anything without the certification to avoid fines and penalties for storage in Nicaragua, some people has been waiting 2 or 3 months to get their belongings out of Customs). Immigration is also double checking former law enforcement agents seeking residency, so their application process usually takes longer.
Cost:
For foreign investors, Immigration charges C$ 6,400 (Cordobas). MIFIC doesn’t charge for the inspection, however the investor must pay the whole transportation and lodging or accommodations if apply.
For Pensioners and rentistas, Immigration charge C$ 5,900.
Tips:
It is a crime to offer any tips or bribes, so don’t even think about it.
Please note: the comments made in this article are based on my expertise, the law and the internal rules of application. But the law is subject to change.
Paul Tiffer is a English-speaking lawyer in Managua with the firm Tiffer & Asociados. He can be reached at tel. (505) 8884-1652 , or by email: ptiffer@cablenet.com.ni
Authentication of Documents
Apostille – An “apostille” is a form of authentication issued to documents for use in countries that participate in the 1961 Hague Convention. A list of countries that accept apostilles is provided by the Hague Conference on International Law and is available here.
From Paul Tiffer
I am glad to inform you that Nicaragua now is part of The Hague Convention (Apostille Treaty) which entered into force in Nicaragua on 14 May 2013, abolishing the requirement for legalization or authentication of foreign public documents by the local and state authorities and by the Nicaraguan Consulate abroad, for the countries which are members of the Convention.
This will apply to public documents which have been executed in the territory of one country and which have to be provided to another country like Nicaragua.
The following are deemed to be public documents:
· documents emanating from an authority or an official connected with the courts or tribunals of the country, including those emanating from a public prosecutor, a clerk of a court or a process-server administrative documents;
· notarial acts;
· official certificates which are placed on documents signed by persons in their private capacity, such as official certificates recording the registration of a document or the fact that it was in existence on a certain date and official and notarial authentications of signatures.
However, it shall not apply:
· to documents executed by diplomatic or consular agents;
· to administrative documents dealing directly with commercial or customs operations
In Nicaragua as of now any residency applicant from the countries under the Convention, just need to Apostille their documents – Birth Certificate, Police Record, Health Certificate, Marriage License, Pension letter etc., and have them translated to be accepted in Nicaragua.This new rule will make a simpler process to the people who need to submit their documents in Nicaragua as retirees, foreign investors, missioners, etc. In each country which is part of the Convention of Hague there is an office or agency from the government to Apostille public documents, with a small seal that the document is accepted in any other country member of the Convention; the document must be stamped in the back part or in an extension of the document, the small seal will be done in the official language of the authority which issues it. The standard terms appearing therein may be in a second language also.
I am afraid Canada is not part of the Convention of Hague for Apostille, so they must continue authenticating. Canadians have two options:
· First legalized in the Department of Foreign Affair and International Trade in Ottawa, and then in any Nicaraguan Consulate in USA.
· Second and faster is to legalize in Canada in the Department of Foreign Affair and International Trade, in Ottawa and then in the Canadian Consulate in Managua, for retirees it is free of charge.
Paul Tiffer
Attorney at Law
ptiffer@cablenet.com.ni
Paul Tiffer is a English-speaking lawyer in Managua with the firm Tiffer & Asociados. He can be reached at tel. (505) 8884-1652 , or by email: ptiffer@cablenet.com.ni
One Expat's Experience (Spring 2012)
Here is the story of our residency application. We applied under Law 694, formally called Ley
de Promoción de Ingreso de Residentes Pensionados y Residentes Rentistas which is handled
by the Nicaraguan Institute for Tourism (INTUR). Our expediter said this was easier than coming in
through Immigration under an Investor status.
We hit a snag on our first application which I think is an important lesson. I assumed that they
wanted us to show financial solvency so I brought documentation that showed that I had a
paying job for the next year and probably two, I brought papers from the government that
showed we would be qualified for Social Security in a couple years that would meet income
requirements, and I brought an IRA statement that showed we had retirement savings sufficient
to provide income at their required level for a number of decades. None of that was acceptable
to them because the law requires a guarantee of income, not financial resources, not promises
of future income, simply a guarantee of income from a recognized financially sound third party
for the five year life of the residency visa. I had to return to the US and buy an annuity contract
(from MetLife) and have them write a letter in which they guarantee I would be receiving the
monthly amount for the next five years. The current level on income required for a pensioner
and a dependent is $1000 per month, however Harry says they are considering raising that to
$1200. We went with the $1200 to be on the safe side.
All documentation must go through a multiple step authentication process. First it must be
signed and notarized. Then the notary signature and credentials must be certified by the
secretary of state (SofS) of the notary’s state. They will attach a sealed piece of paper to the
document signed by the state official. Finally, the document, the certification, and a translation
(with two copies of each) must go to the Nicaraguan consulate for authentication. They will
return the originals with official stamps and attached signed papers. The translations supplied
to the consulate are for their convenience but are not official so once in Nicaragua the
documents will have to be officially translated on legal forms and stamped (equivalent to
notarized) by a Nicaraguan lawyer. These translations will include all attached certifications and
authentications.
We had a minor glitch with one authentication. The letter from MetLife came from Iowa where
their offices are. We called the consulate in San Francisco and they said they could
authenticate it. When I sent it, it came back saying they did not handle documents from Iowa,
the document had to go to Miami. They enclosed a pamphlet that showed which states were
handled by which consulates. I suspect that in the phone call Iowa was confused with Idaho
which they do handle in San Francisco. I mention this only so that the reader knows to double
check when in doubt about which consulate to send documents to.
Another note – I cannot imagine trying to do this from Nicaragua. It was all we could manage to
do it from here. I ended up getting a FedEx account to simplify the document transfers. The
routine is to put all the documents going to wherever, a secretary of state office, a consulate,
etc, in a FedEx envelope along with a 2nd self addressed FedEx envelope folded in half. Both
envelopes have waybills with my account number. It got to be fairly routine and the FedEx
people recognized me and would ask how the process was going.
Final advice is to get some good local help. It’s cost on the order of a round trip ticket to the
US and will probably save a couple such trips. The help should handle document preparation
including review for completeness, translations with appropriate stamps, copies (3 of
everything), and the proper preparation of the application packet. We also had help with the
residency request form and the personal letter. The letter is not simply a request to live in the
wonderful country of Nicaragua. It must address some six to eight points required in law 694.
Our letter had those points, bulleted, and little else. It’s not a creative writing assignment, it simply fulfills the legal requirements as simply and obviously as possible.
The documentation we supplied for our application includes the following:
Also, we did not need the list of household goods when we applied, but will need it before getting duty free import of those goods. That’s a whole other process. We are not bringing a vehicle, so have no
insight into that part of the process.
Old Residency Rules (October 2009)
The residency rules have been greatly improved for foreigners wanting to become residents. The following is the interpretation of these new rules by Paul Tiffer who is an attorney at law and a public notary in Managua:
In my opinion it is the result of many years of application of the previous law which had several gaps and we Lawyers, Retirees and INTUR had to figure out what to do with those gaps. Now we have a comprehensive Law and it will not be subject to personal interpretations, most of it at least. The new Law has some of the same benefits as the old one, but they are improved, and it includes some new ones. This commentary is to explain the most important part, the gist of the law, and not to describe the structure or explain one by one the 27 articles of the Law.
The objective of this Law is the promotion of the opportunity to come to Nicaragua to live for a long period of time as a Resident (five years). To people who bring an minimum income, it gives a special fiscal treatment with tax exemptions.
To take advantage of this law and get the benefits, people who are going to apply must prove a monthly income of ($600.00) for Retirees and seven hundred fifty American dollars ( $ 750.00) for people with private incomes; i.e. benefits or incomes from investments, certificate of deposits for five years, bonus, revenues, stocks, rents, retirement plans, etc. Dependents can be parents of the applicant, spouse (husband or wife), children under 21 years old; or any other relative in the four grades who are dependents of the applicant. The applicant must have an income of one hundred fifty American dollars ($150.00) for each dependent.
Nicaraguans who have been living more than ten years abroad and have an income coming from abroad, according to the Law, can get the benefits of this Law.
The Benefits are:
*Get a Stable Residency for five years.
*Pay no taxes on any out-of-country earnings
*Exemption from payment of the one way ticket out of the county for the applicant/resident.
*A tax exemption for a vehicle C.I.F. (Cost, Insurance and Freight), for twenty five thousand dollars ($25,000.00); if the price of the vehicle is over twenty five thousand dollars ($ 25,000.00) the Resident will pay taxes on the difference. This vehicle can be changed with tax exemption every four years. Vehicles can be imported from the country where the applicant comes from or buy it in Nicaragua in both cases will be a tax exemption.
*A tax exemption of twenty thousand dollars ($ 20,000.00) for household goods. There is a comprehensive list of articles that can be considered household goods. i.e.: “household goods are the new or used goods that help or allow living comfortably in a house.”
*A tax exemption of fifty thousand dollars ($ 50,000.00) of the VAT (value added tax) of construction materials to build a house to live in.
*Tax exemption of the VAT in rental cars of the Resident, for his personal use in Nicaragua.
*Applicants can present a naturalization certificate instead of the birth certificate
Requirements:
People who want to apply and get these benefits must submit the following documents:
*Application form
*Income certification - certificate of income from your bank or pension plan *Birth Certificate or naturalization certificate
*Two photographs
*Health Certificate - certificate of letter from your doctor stating that you are in good physical health, are free from communicable diseases and are mentally sound.
*Photocopy of the passport
*Marriage License
*Police Record Certificate - letter from your local police department stating that you have never been convicted of any crime
*List of the household goods being imported and vehicle’s documentation
All of the documentation must be Apostilled (given Consular Legalization) and Authenticated in the country where the documents come from the Nicaraguan Consulate in the country of origin. The documents may also need to be translated to Spanish and both language copies may need to be notarized. Your nearest Nicaragua consulate will advise.
Obligations:
*Live in Nicaragua at least six months per year
It can be continuous or discontinuous. However, with INTUR’s authorization there can be exemptions, i.e. heath reasons or having investments in real estate over seventy five thousand dollars
($ 75,000.00) in Nicaragua.
*The renewal every five years of the Residency according to the Residency Law
Prohibitions:
The Resident can’t work in Nicaragua with government money but could do private investments in a business and prove investments in real estate over seventy five thousand dollars ( $ 75,000.00) in Nicaragua in accordance with the Ministry of Economy and Development’s approval. People like scientists or professors in Universities or Research Institutes will be able to work in Nicaragua.
People who build a house for personal or private use, with tax exemptions in construction materials, can’t transfer the house for ten years or they must pay the taxes on those materials.
The age to apply:
The minimum age to apply for both Retiree and Private Income applicants is forty five years old, however the same Law in article 23 exempts people who are previously retired for medical reasons or with private income clearly proven. That means, to apply as Resident with Private Income there are no limitations.
The previous residency law’s effect on Residents:
People who got residency before this law went into effect will be covered even if their incomes are lower than that required by the new law; the law doesn't have a retroactive effect, so the people who actually are resident don’t have to prove or raise their incomes and will get the same benefit as new residents.
Interpretation by:
Paul Tiffer
Attorney at law, Public Notary
Tiffer & Associates
Cell Phone: (505) 8884-1652
Managua, Nicaragua
ptiffer@cablenet.com.ni
Once you are a resident of Nicaragua, you need an exit visa to leave the country but it is not difficult to get and most of us simply get it at the airport when we leave. Foreign residents can also get a permission slip from the government that allows them to leave and enter as much as they like during a one year period.
The bad news is that it can be tricky getting the residency. Everyone seems to have a different experience regardless if you use a good lawyer or an expediter. There are a few people that will tell you they had no problems but I don't believe them.
When you do your second five-year residency you can choose to be a citizen. There are advantages and disadvantages but it is legal to have both a USA and a Nicaraguan passport.
Residency Assistance
Patricia Sanchez Quintero Speaks English
patriciasanchezquintero@gmail.com
8950-8211 2280-6990
Dr. Hugo Rodrigues Flores
email: seare5@hotmail.com
phone: 8867-9241
Paul Tiffer Speaks English
Abogado y Notario Público
Tiffer & Asociados
Reparto Bolonia Hospital Militar 1c. al lago, 1c. abajo Cel.: 8884-1652; Tel.: 2266-8622
Managua, Nicaragua E-mail: ptiffer@cablenet.com.ni
Dr. Zaira Guadamuz Speaks English
Phone 8880-7769 www.nicaragua-legal.com
Updated Information on Types of Residency
October 2012
Nicaragua is receiving more and more foreigners who want to live here for a variety of reasons. For aspiring expats, one of the most important steps to moving abroad is learning how to do so legally, and that means applying for residency.
Applying for residency in Nicaragua can be difficult for many people due to lack of information or confusion over the application process. Immigration officials can be hard to deal with and difficult to understand if Spanish is not your first language.
It is imperative to know that there are several ways to apply for and obtain residency. They are:
Foreign Investor. According the law, any foreign investor can apply for residency if he or she runs a business, is forming a corporation and will invest at least $30,000 in Nicaragua in any sector (tourism, real estate, agriculture, energy, mining, communication, importation, education, fishing, natural resources, transportation etc.).
An appraiser from the government must confirm the investment by visiting both the property and company. Once the government’s Ministry of Development, Industry and Commerce (MIFIC) approves your business, you can apply for a five-year residency as a Foreign Investor. The approval will cover the shareholders or investor (Nicaragua Corporations require a minimum of 2 members). The foreign investor residency also extends to the investor’s family members. Applicants from the People’s Republic of China are subject to additional approvals.
Pensioner or Rentista: This category is for people who receive a pension from abroad of more than $600 per month. A rentista is anybody who has a private income of more than $750 coming from investments such as stocks, bonds, or any kind of revenue. Salaries do not apply.
There are several benefits for this category. The most important are: Residency for five years; Tax exemption to import household goods valuated at $20,000 and tax-free import of a vehicle valuated at $25,000 CIF (the vehicle can also be bought locally in Nicaragua and the tax exemption will still apply).
Employee. A company can support the residency application of its employees by submitting copies of its legal documents in Nicaragua. For employees, Immigration usually grants a provisional residency for one year. Upon the third renewal, it can be extended to five years.
NGO, Missionary. The NGO must support the application and submit copies of the legal documents in Nicaragua. For missionaries and NGO workers, Immigration usually grants a provisional residency for one year.
Spouse. Foreigners married to a Nicaraguan can also apply for residency by providing a marriage certificate.
In all cases, the applicants for residency must provide the following supporting documentation:
1. Birth Certificate
2. Police Record
3. Health Certificate
4. Copies of the Article of Incorporation (for investors)
5. Pension letter (for retirees)
6. Marriage Certificate (for spouses)
All documents must be from the applicant’s country of birth and must be authenticated by the nearest Nicaraguan Consulate in the country where the documents were issued. To get authentication in the United States, documents must be notarized (some States doesn’t notarized official documents) and authenticated by a County Clerk or Secretary of State.
Since there are no Nicaraguan consulates in Canada, Canadians must have their documents authenticated in Canada and then sent to the Nicaraguan Consulate in Washington, D.C. In some cases, documents can also be legalized in the Canadian Consulate in Managua, so it advised that applicants inquire beforehand.
Once documents are authenticated in the country of origin, they must be authenticated by Nicaraguan officials in the Nicaraguan Foreign Affairs Ministry and translated into Spanish with a Nicaraguan Notary to be submitted to Immigration. It is important to note that even foreigners who have been living here for years will still need to provide all the documents from their country of origin (a Nicaraguan police record doesn’t count for first-time applicants, even if they have been living here for years as a tourist). In all cases, no documents can be submitted without all the proper authentications.
It’s also worth noting that police records and health certificates have an expiration date after five months for pensioners applying for residency through INTUR and six months for everyone else.
There are two types of provisional residencies: 1 year and 5 year (which is considered “permanent”). Some residencies allow the right to work in Nicaragua and others don’t. Residency under the category of pensioner or rentista does not allow in-country work.
Length of Process:
It is not easy to estimate how long it will take to obtain residency in each of the categories, but here’s a general idea:
As an Investor, the Incorporation of a Corporation can take around 3- 4 weeks, the inspection takes another 2-3 weeks and then usually another week for the report and certification. With the certification the applicant must submit the rest of his or her documents – police report, birth and health certificates. Then Immigration will have between 45 – 60 days to issue the Residency Card. So the whole process can take anywhere from 3 to 6 months.
It takes about the same length of time for a Pensioner or Rentista. According to law, INTUR and Immigration officials are supposed to hold a Committee meeting once a month for new applications. However, oftentimes they only meet every other month. Then Immigration has 45 – 60 days to print the Residency Card. With the INTUR certification, the applicant can import household goods and the vehicle (my advice is do not import anything without the certification to avoid fines and penalties for storage in Nicaragua, some people has been waiting 2 or 3 months to get their belongings out of Customs). Immigration is also double checking former law enforcement agents seeking residency, so their application process usually takes longer.
Cost:
For foreign investors, Immigration charges C$ 6,400 (Cordobas). MIFIC doesn’t charge for the inspection, however the investor must pay the whole transportation and lodging or accommodations if apply.
For Pensioners and rentistas, Immigration charge C$ 5,900.
Tips:
It is a crime to offer any tips or bribes, so don’t even think about it.
Please note: the comments made in this article are based on my expertise, the law and the internal rules of application. But the law is subject to change.
Paul Tiffer is a English-speaking lawyer in Managua with the firm Tiffer & Asociados. He can be reached at tel. (505) 8884-1652 , or by email: ptiffer@cablenet.com.ni
Authentication of Documents
Apostille – An “apostille” is a form of authentication issued to documents for use in countries that participate in the 1961 Hague Convention. A list of countries that accept apostilles is provided by the Hague Conference on International Law and is available here.
From Paul Tiffer
I am glad to inform you that Nicaragua now is part of The Hague Convention (Apostille Treaty) which entered into force in Nicaragua on 14 May 2013, abolishing the requirement for legalization or authentication of foreign public documents by the local and state authorities and by the Nicaraguan Consulate abroad, for the countries which are members of the Convention.
This will apply to public documents which have been executed in the territory of one country and which have to be provided to another country like Nicaragua.
The following are deemed to be public documents:
· documents emanating from an authority or an official connected with the courts or tribunals of the country, including those emanating from a public prosecutor, a clerk of a court or a process-server administrative documents;
· notarial acts;
· official certificates which are placed on documents signed by persons in their private capacity, such as official certificates recording the registration of a document or the fact that it was in existence on a certain date and official and notarial authentications of signatures.
However, it shall not apply:
· to documents executed by diplomatic or consular agents;
· to administrative documents dealing directly with commercial or customs operations
In Nicaragua as of now any residency applicant from the countries under the Convention, just need to Apostille their documents – Birth Certificate, Police Record, Health Certificate, Marriage License, Pension letter etc., and have them translated to be accepted in Nicaragua.This new rule will make a simpler process to the people who need to submit their documents in Nicaragua as retirees, foreign investors, missioners, etc. In each country which is part of the Convention of Hague there is an office or agency from the government to Apostille public documents, with a small seal that the document is accepted in any other country member of the Convention; the document must be stamped in the back part or in an extension of the document, the small seal will be done in the official language of the authority which issues it. The standard terms appearing therein may be in a second language also.
I am afraid Canada is not part of the Convention of Hague for Apostille, so they must continue authenticating. Canadians have two options:
· First legalized in the Department of Foreign Affair and International Trade in Ottawa, and then in any Nicaraguan Consulate in USA.
· Second and faster is to legalize in Canada in the Department of Foreign Affair and International Trade, in Ottawa and then in the Canadian Consulate in Managua, for retirees it is free of charge.
Paul Tiffer
Attorney at Law
ptiffer@cablenet.com.ni
Paul Tiffer is a English-speaking lawyer in Managua with the firm Tiffer & Asociados. He can be reached at tel. (505) 8884-1652 , or by email: ptiffer@cablenet.com.ni
One Expat's Experience (Spring 2012)
Here is the story of our residency application. We applied under Law 694, formally called Ley
de Promoción de Ingreso de Residentes Pensionados y Residentes Rentistas which is handled
by the Nicaraguan Institute for Tourism (INTUR). Our expediter said this was easier than coming in
through Immigration under an Investor status.
We hit a snag on our first application which I think is an important lesson. I assumed that they
wanted us to show financial solvency so I brought documentation that showed that I had a
paying job for the next year and probably two, I brought papers from the government that
showed we would be qualified for Social Security in a couple years that would meet income
requirements, and I brought an IRA statement that showed we had retirement savings sufficient
to provide income at their required level for a number of decades. None of that was acceptable
to them because the law requires a guarantee of income, not financial resources, not promises
of future income, simply a guarantee of income from a recognized financially sound third party
for the five year life of the residency visa. I had to return to the US and buy an annuity contract
(from MetLife) and have them write a letter in which they guarantee I would be receiving the
monthly amount for the next five years. The current level on income required for a pensioner
and a dependent is $1000 per month, however Harry says they are considering raising that to
$1200. We went with the $1200 to be on the safe side.
All documentation must go through a multiple step authentication process. First it must be
signed and notarized. Then the notary signature and credentials must be certified by the
secretary of state (SofS) of the notary’s state. They will attach a sealed piece of paper to the
document signed by the state official. Finally, the document, the certification, and a translation
(with two copies of each) must go to the Nicaraguan consulate for authentication. They will
return the originals with official stamps and attached signed papers. The translations supplied
to the consulate are for their convenience but are not official so once in Nicaragua the
documents will have to be officially translated on legal forms and stamped (equivalent to
notarized) by a Nicaraguan lawyer. These translations will include all attached certifications and
authentications.
We had a minor glitch with one authentication. The letter from MetLife came from Iowa where
their offices are. We called the consulate in San Francisco and they said they could
authenticate it. When I sent it, it came back saying they did not handle documents from Iowa,
the document had to go to Miami. They enclosed a pamphlet that showed which states were
handled by which consulates. I suspect that in the phone call Iowa was confused with Idaho
which they do handle in San Francisco. I mention this only so that the reader knows to double
check when in doubt about which consulate to send documents to.
Another note – I cannot imagine trying to do this from Nicaragua. It was all we could manage to
do it from here. I ended up getting a FedEx account to simplify the document transfers. The
routine is to put all the documents going to wherever, a secretary of state office, a consulate,
etc, in a FedEx envelope along with a 2nd self addressed FedEx envelope folded in half. Both
envelopes have waybills with my account number. It got to be fairly routine and the FedEx
people recognized me and would ask how the process was going.
Final advice is to get some good local help. It’s cost on the order of a round trip ticket to the
US and will probably save a couple such trips. The help should handle document preparation
including review for completeness, translations with appropriate stamps, copies (3 of
everything), and the proper preparation of the application packet. We also had help with the
residency request form and the personal letter. The letter is not simply a request to live in the
wonderful country of Nicaragua. It must address some six to eight points required in law 694.
Our letter had those points, bulleted, and little else. It’s not a creative writing assignment, it simply fulfills the legal requirements as simply and obviously as possible.
The documentation we supplied for our application includes the following:
- Birth certificates. These are originals issued by the state and authenticated at the appropriate consulate, no SofS certification required.
- Marriage license, certified by SofS and authenticated.
- Health status report from a doctor, signed, notarized, certified by SofS, and authenticated.
- Police background report from city of residence. I believe these went directly to the consulate for authentication without a SofS certification.
- Letter of guaranteed income. If you are on Social Security this is easy. Simply go to the US embassy in Managua and request an official statement of your social security income. It’s very routine. In our case it was a letter from MetLife, signed, notarized, certified by SofS and authenticated at the consulate. It served the same purpose.
- Passport copies including identity pages and all pages with visa stamps, etc. Since we have the passports at the application, these do not need to be certified/authenticated.
- A letter signed by the applicant requesting residency.
- A government form filled out and signed by the applicant.
Also, we did not need the list of household goods when we applied, but will need it before getting duty free import of those goods. That’s a whole other process. We are not bringing a vehicle, so have no
insight into that part of the process.
Old Residency Rules (October 2009)
The residency rules have been greatly improved for foreigners wanting to become residents. The following is the interpretation of these new rules by Paul Tiffer who is an attorney at law and a public notary in Managua:
In my opinion it is the result of many years of application of the previous law which had several gaps and we Lawyers, Retirees and INTUR had to figure out what to do with those gaps. Now we have a comprehensive Law and it will not be subject to personal interpretations, most of it at least. The new Law has some of the same benefits as the old one, but they are improved, and it includes some new ones. This commentary is to explain the most important part, the gist of the law, and not to describe the structure or explain one by one the 27 articles of the Law.
The objective of this Law is the promotion of the opportunity to come to Nicaragua to live for a long period of time as a Resident (five years). To people who bring an minimum income, it gives a special fiscal treatment with tax exemptions.
To take advantage of this law and get the benefits, people who are going to apply must prove a monthly income of ($600.00) for Retirees and seven hundred fifty American dollars ( $ 750.00) for people with private incomes; i.e. benefits or incomes from investments, certificate of deposits for five years, bonus, revenues, stocks, rents, retirement plans, etc. Dependents can be parents of the applicant, spouse (husband or wife), children under 21 years old; or any other relative in the four grades who are dependents of the applicant. The applicant must have an income of one hundred fifty American dollars ($150.00) for each dependent.
Nicaraguans who have been living more than ten years abroad and have an income coming from abroad, according to the Law, can get the benefits of this Law.
The Benefits are:
*Get a Stable Residency for five years.
*Pay no taxes on any out-of-country earnings
*Exemption from payment of the one way ticket out of the county for the applicant/resident.
*A tax exemption for a vehicle C.I.F. (Cost, Insurance and Freight), for twenty five thousand dollars ($25,000.00); if the price of the vehicle is over twenty five thousand dollars ($ 25,000.00) the Resident will pay taxes on the difference. This vehicle can be changed with tax exemption every four years. Vehicles can be imported from the country where the applicant comes from or buy it in Nicaragua in both cases will be a tax exemption.
*A tax exemption of twenty thousand dollars ($ 20,000.00) for household goods. There is a comprehensive list of articles that can be considered household goods. i.e.: “household goods are the new or used goods that help or allow living comfortably in a house.”
*A tax exemption of fifty thousand dollars ($ 50,000.00) of the VAT (value added tax) of construction materials to build a house to live in.
*Tax exemption of the VAT in rental cars of the Resident, for his personal use in Nicaragua.
*Applicants can present a naturalization certificate instead of the birth certificate
Requirements:
People who want to apply and get these benefits must submit the following documents:
*Application form
*Income certification - certificate of income from your bank or pension plan *Birth Certificate or naturalization certificate
*Two photographs
*Health Certificate - certificate of letter from your doctor stating that you are in good physical health, are free from communicable diseases and are mentally sound.
*Photocopy of the passport
*Marriage License
*Police Record Certificate - letter from your local police department stating that you have never been convicted of any crime
*List of the household goods being imported and vehicle’s documentation
All of the documentation must be Apostilled (given Consular Legalization) and Authenticated in the country where the documents come from the Nicaraguan Consulate in the country of origin. The documents may also need to be translated to Spanish and both language copies may need to be notarized. Your nearest Nicaragua consulate will advise.
Obligations:
*Live in Nicaragua at least six months per year
It can be continuous or discontinuous. However, with INTUR’s authorization there can be exemptions, i.e. heath reasons or having investments in real estate over seventy five thousand dollars
($ 75,000.00) in Nicaragua.
*The renewal every five years of the Residency according to the Residency Law
Prohibitions:
The Resident can’t work in Nicaragua with government money but could do private investments in a business and prove investments in real estate over seventy five thousand dollars ( $ 75,000.00) in Nicaragua in accordance with the Ministry of Economy and Development’s approval. People like scientists or professors in Universities or Research Institutes will be able to work in Nicaragua.
People who build a house for personal or private use, with tax exemptions in construction materials, can’t transfer the house for ten years or they must pay the taxes on those materials.
The age to apply:
The minimum age to apply for both Retiree and Private Income applicants is forty five years old, however the same Law in article 23 exempts people who are previously retired for medical reasons or with private income clearly proven. That means, to apply as Resident with Private Income there are no limitations.
The previous residency law’s effect on Residents:
People who got residency before this law went into effect will be covered even if their incomes are lower than that required by the new law; the law doesn't have a retroactive effect, so the people who actually are resident don’t have to prove or raise their incomes and will get the same benefit as new residents.
Interpretation by:
Paul Tiffer
Attorney at law, Public Notary
Tiffer & Associates
Cell Phone: (505) 8884-1652
Managua, Nicaragua
ptiffer@cablenet.com.ni
