If you are a Nicaraguan citizen who has resided abroad for at least two years, it is important that you know about regulations that represent a number of incentives if you wish to return to the country.
We refer to two laws in particular: (i) Law 535 “Special Law on Migration Incentives for Nicaraguan Residents Abroad, and (ii) Law 265” Law that Establishes Self-despatch for Import, Export and Other Regimes.
Each one of them is applicable according to the characteristics of the case and permanence:
- Law 535:
Applicable to Nicaraguans (single or belonging to a family) who demonstrate that they have resided abroad for at least the last five years prior to the date this law entered into force, meaning before May 23, 2005. The same applies to families in which at least one of the heads of the family is a Nicaraguan national and wishes to return to the country to settle.
For purposes of the Law, a family nucleus is that composed by man and woman, children and dependents. The union of man and woman either by marriage or by a stable union even if they do not have children or dependents and that family group constituted by only one of the heads of the family, with their children and dependents.
The benefits of this Law, which are granted only once includes the exemption from payment of customs duties and other import taxes on:
– Internment of instruments for the professional exercise, utensils, tools and equipment necessary for the development of the activity of the Nicaraguan citizen, as well as capital goods and raw materials for the establishment of businesses or companies. This benefit is granted up to a conglomerate of two hundred thousand dollars of the United States of America ($200,000.00).
– Motor Vehicle that may be new or used and in both cases the CIF value may not exceed twenty-five thousand United States dollars ($25,000.00). If used, it cannot be more than seven years old, from its date of manufacture. It is important to emphasize that the vehicle can be bought in the local market, enjoying the rights of exemption of the payment of any applicable tax or rate.
– Household items, which include all of the furniture for the house, which serves for the comfort or adornment of a house, such as: appliances to facilitate domestic work and distraction of the family; Tableware, kitchenware, upholstery; Carpets, bedding, bathing and hanging objects from ceilings or walls, as well as those placed on top of others for practical, artistic or affective reasons, such as portraits, vases, ashtrays, pillows, cushions and the like.
There are restrictions to these benefits, both the instruments for the professional exercise (tools, utensils, etc.) and the motor vehicle interned or bought in the country under the Law, can NOT be sold, nor transferred to third parties before the end of three (03) years, counted from the date of its import, unless it satisfies the due payment of the corresponding taxes.
Nicaraguans who decide to benefit from this Law must submit the following to the competent authority, meaning the Ministry of Finance and Public Credit:
- Photocopy of the passports or travel documents of the persons who make up the family nucleus and / or the applicant.
- Certificate of Migration Movement issued by the General Directorate of Migration and Foreigners of the Ministry of the Interior.
- Evidence of their stay abroad for a minimum of five (05) years duly notarized (for example: Receipts of Electricity, Water, Telephone, Rental) and authenticated by the Nicaraguan Consulate of their jurisdiction, previously authenticated before The Secretary of State of the State to which he belongs.
- List of Household items. This list must be notarized and authenticated by the Secretary of State and the Consulate of Nicaragua.
- List of Professional Instruments. This list must be notarized and authenticated by the Secretary of State and the Consulate of Nicaragua.
- Title of Property of the vehicle certified by the Consulate of Nicaragua. Likewise, you must file a Declaration with a Notary Public that owns the vehicle.
- Affidavit in which it expresses its commitment to reside in the country for at least a minimum period of three (3) years, counted from the date of its hospitalization. This declaration may be made in Nicaragua before a Notary Public, otherwise it must be done before a Notary of his interest and later authenticated before the Secretary of State of the State of his Jurisdiction and the Consulate of Nicaragua.
- Document demonstrating the applicant’s autonomy and economic and financial solvency, in the event that the applicant does not form a family nucleus (Article 11 of the Law).
Law 265:
If Nicaraguans do not comply with the requirements of Law 535, then those who have been absent from the country for more than 24 months prior to their definitive return, may benefit from the exemption of household goods established by Law 265.
In the self-despatch for the import or export of household goods, a Customs Agent must intervene and it won’t be subject to the random selection mechanism. However, the recognition of the goods that compose them will be practiced in all cases.
The declaration of importation must be accompanied by another declaration certified by the Nicaraguan consulate nearest to the place where the person intending to import the household goods, which contains:
1) Name of the Importer;
2) Domicile abroad;
3) The time of residence abroad. In the case of national emigrants, the period of residence abroad may not be less than two years;
4) The description and quantity of the goods that make up household items.
The exemption of taxes and duties of household goods will be granted within the period that includes three months before and after the traveler’s entry or exit.
It is important to note that the issuance of a RUC (Taxpayer Unique Registration), applicable only to natural persons, without economic activity may be required because it is an eventual act. The requirements for issuance are as follows: Citizen identification document, consul’s letter from the country of origin, requesting exemption from the DGA and list of household items, duly stamped by the corresponding consul.
If you are interested in learning more about this process, please contact Claraliz Oviedo coviedo@alvaradoyasociados.com.ni