Legal Guarantees for Investments

Guarantees for investment and business development have the highest rank, since they are contained in the Country’s Political Constitution.

In Nicaragua, the right to private property is protected by our Constitution in its Article 5, under "Principles of the Nicaraguan Nation." Additionally, the Country's Political Constitution establishes the legal guarantees for foreigners to hold the same rights as Nicaraguans, and also to acquire and own private property.

The Foreign Investment Promotion Law (344) offers investors fundamental guarantees such as:

  • Full currency convertibility
  • Freedom to expatriate all capital and profits
  • No minimum or maximum investment amount
  • Accelerated depreciation of capital assets
  • Access to financing available in local banks, according to its terms and conditions for approval
  • Full international ownership
  • No discriminatory treatment for foreign investors
  • Full protection of intellectual property rights, patents, and brands

In addition to the Foreign Investment Promotion Law, Nicaragua has signed up to 20 bilateral agreements for reciprocal protection of investments, with several countries in North, Central, and South America, as well as Europe and Asia.

The country has subscribed several treaties for alternative dispute resolution, among these:

  • International Center for Settlement of Investment Disputes (ICSID)
  • Multilateral Investment Guarantee Agency (MIGA)
  • Overseas Private Investment Corporation (OPIC)
  • United Nations Commission on International Trade Law (UNCITRAL / New York Convention of 1958)
  • Inter-American Convention of Commercial Arbitrage of Panama.

Additionally, the Mediation and Arbitration Law (540) governs two alternate methods to the judicial process to solve in an expeditious manner any dispute resulting from contractual relations between private parties.