Nicaragua exempts free trade zone companies from taxes for 15 years, renewable
Daniel Ortega's regime approved a tax exemption of up to 15 years for free trade zone companies, with the possibility of extension, in an attempt to sustain investment and employment amid signs of economic slowdown.
TL;DR
- Nicaragua reformed the Law of Export Free Trade Zones, extending benefits for 15 renewable years.
- Companies will receive tax, customs, and administrative benefits comparable to or exceeding those of Special Economic Zones.
- The reform ensures indefinite renewability of the 15-year tax exemption period.
- This includes exemptions on capital gains and dividends for operating companies and their partners.
- Previous exemptions on Income Tax were reduced after 10 years; now they can be permanently extended.
- The manufacturing industry has seen a decrease of 11,954 workers (6.9% of contributors).
- Exports from free trade zones reached $3.581 billion in 2025, a 1.6% increase from 2024.