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Labor Laws in Nicaragua

  • Annual Leave: 15 days
  • Maternity Leave: 12 weeks
  • Public Holidays: 11
  • Workweek: 48 hours per week.

Income Tax in Nicaragua

Nicaragua has a progressive income tax with rates from 0% to 30%.

Value Added Tax (VAT) in Nicaragua

The standard GST rate is 16%.

Social Security in Nicaragua

Employer Contributions

  • Employers in Nicaragua must contribute the following percentages of their employees' salaries to the Nicaraguan Social Security Institute (INSS):
    • 15% for old-age, disability, and death benefits
    • 6% for occupational hazards
    • 2% for social assistance
    • The total employer contribution is 23% of the employee's salary.

Employee Contributions

  • Employees in Nicaragua contribute 6.25% of their salary to the INSS for old-age, disability, and death benefits.

Work Visas in Nicaragua

Here are the main work visas available in Nicaragua:

Work Permit

  • Up to 1 year (can be extended)
  • For foreign nationals seeking employment in Nicaragua. Requirements:
    • Completed work permit application form
    • Copy of biodata and stamped pages of the passport
    • A letter from the employer in Nicaragua
    • Articles of Incorporation of the company
    • Employment contract validated by the Ministry of Labor
    • Evidence that 90% of the employer's workforce is Nicaraguan

Temporary Residence Visa

  • 1 year (renewable)
  • For foreign nationals planning to work in Nicaragua for an extended period.
  • Requirements:
    • Two passport photographs
    • Passport with at least six months of validity
    • Completed visa application form
    • A formal letter from the employer proving the applicant’s income
    • Original birth certificate and photocopy
    • Criminal background check from any country lived in during the last five years
    • Medical documents proving no known communicable diseases
    • Cash deposit for potential deportation costs

Permanent Residence Visa

  • 5 years
  • For foreign nationals who have lived in Nicaragua as temporary residents for three years.
  • Requirements: Similar to those for the temporary residence visa but focused on long-term residency.

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