Benefits for export-oriented companies

Nicaragua offers attractive fiscal incentives through the Industrial Free Zones for Export Law (917) that can reduce the operating costs for companies interested in establishing export-oriented operations of either goods or services. 

The tax incentives granted by this law are: 100 percent exemption from payment of Income Tax (IR) during the first ten years of operation, as well as exception from custom duties and other taxes such as municipal taxes, sales taxes, among others.

This regime is administered by the National Free Zone Commission (CNZF for its acronym in Spanish) and the steps to follow when setting up under the regime are:

  1. Incorporation of the Company in Nicaragua by filing the incorporation articles and registering the company before tax authority and municipality.
  2. Creation of business, investment and development plans for the CNZF.
  3. Obtain environmental permit, safety and sanitary licenses, and the letter of support from the mayor’s office.
  4. Complete the necessary forms and pay the application fee (US$300).


Upon receiving the complete documentation, the Technical Secretary shall reply within thirty (30) calendar days. Applications may be approved, denied or corrected if the Commission considers that information is missing, corrections are needed or additional information is required. 

Once the company is approved, it shall sign an Investment and Operating agreement with the CNZF to operate under the Free Zone Regime.