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Nicaragua Capital Gains Tax Guide 2026

Capital gains in Nicaragua are generally treated as ordinary income and taxed at progressive PIT rates up to 30% for individuals, or at the CIT rate of 30% for corporations. Alternatively, a definitive 15% withholding tax may apply to certain capital gains. Occasional capital gains are taxed at a reduced rate of 10%. Gains are sourced in Nicaragua if the asset is located in or used in Nicaragua. The tax is administered by the DGI.

Overview — Capital Gains in Nicaragua

Capital gains taxation in Nicaragua is governed by the Income Tax Law (Ley de IR) and administered by the Dirección General de Ingresos (DGI). Unlike some jurisdictions that have a separate capital gains tax regime, Nicaragua treats capital gains as ordinary income for most purposes. The tax treatment depends on whether the gain is from habitual trading, occasional realisation, or a one-time transaction. Nicaragua's territorial system means only gains from assets located or used in Nicaragua are taxable.

Treatment as Ordinary Income — Up to 30%

For individuals engaged in habitual trading of assets, capital gains are treated as ordinary income and subject to progressive PIT rates of 0–30%. For corporations, all capital gains are included in taxable income and subject to CIT at 30%. The gain is calculated as the difference between the sale price and the adjusted cost basis of the asset. Allowable deductions include acquisition costs, improvement costs, and transaction expenses.

Definitive Withholding Tax — 15%

As an alternative to ordinary income treatment, certain capital gains may be subject to a definitive 15% withholding tax (WHT). This option provides a simplified taxation method where the 15% WHT is a final tax — no further tax is due on the gain. This treatment typically applies to gains from the sale of shares, securities, and certain other assets where the seller is not a habitual trader. The 15% rate is applied to the gross gain.

Occasional Gains — 10%

Occasional capital gains (gains from non-habitual, one-time transactions) are subject to a reduced tax rate of 10%. This applies to individuals who do not regularly trade assets. Occasional gains include the sale of personal property, inheritance-related gains, and other non-recurring realisations. The gain is calculated as the sale price less the documented acquisition cost and allowable expenses. Documentation of the cost basis is essential to claim this reduced rate.

Scope of Capital Gains

Capital gains tax applies to the following categories of assets disposed of by residents or non-residents:

  • Real estate: Land, buildings, and immovable property located in Nicaragua
  • Shares: Shares in Nicaraguan companies (both public and private)
  • Securities: Bonds and other securities issued by Nicaraguan entities
  • Intangible property: Intellectual property used in Nicaragua
  • Other assets: Tangible personal property located in Nicaragua

Filing and Payment

Capital gains are declared on the annual tax return (PIT for individuals, CIT for corporations). The gain is included in total income and taxed at the applicable rates. For the definitive 15% WHT option, the tax is withheld at the time of sale by the buyer or notary and remitted to the DGI. Occasional gains are declared on the annual return. Late filing attracts penalties and monthly interest on unpaid tax.

FAQs

What rate applies to capital gains on real estate?

For habitual traders, real estate gains are taxed as ordinary income at up to 30%. For occasional sellers, the 10% rate may apply. Alternatively, a 15% definitive WHT may be elected.

How is the cost basis determined for capital gains?

The cost basis is the documented acquisition cost including purchase price, legal fees, transfer taxes, and improvement costs. If documentation is unavailable, the DGI may apply a deemed basis.

Are capital losses deductible?

Capital losses may be offset against capital gains in the same year. Unused losses may be carried forward for up to 3 years for corporate taxpayers.

Does Nicaragua tax gains on foreign assets?

No, under the territorial system, only gains from assets located or used in Nicaragua are subject to tax. Gains on foreign assets are not taxable in Nicaragua.

Disclaimer

This guide provides general information about Nicaraguan capital gains tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Nicaraguan tax advisor or the Dirección General de Ingresos for advice specific to your situation. InvestmentKit does not provide tax advice.

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