Nicaragua Offers Luring Tax Breaks for Balearic Investors

godking
15 October 2004 6:00am

During a recent visit to the Balearic Islands, Nicaragua’s Tourism Minister Lucia Salazar announced her country is implementing very attractive tax breaks for foreign investors in virtue of the National Act on Tourism Incentives that since it was signed into law in 1999 has generated $200 million worth of profits for the local travel sector.

Mrs. Salazar hopes this new tax policy, coupled with the juridical security that Nicaragua delivers, will eventually build a fire under Balearic businesspeople to pour heavy cash into the country. The Central American nation is blessed with some 430 miles of beaches and welcomes over half a million tourists each year. During the first half of 2004, Nicaragua has received 17 percent more trippers than in the first six months of 2003.

The National Act on Tourism Incentive offers tax breaks for foreign investors in terms of design and engineering services, as well as a 10-year tariff relief over the purchase of building materials, real estate properties and chattels. The piece of legislation also stipulates additional rollovers and other monetary incentives for ten more years.

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