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This law guarantees the equal treatment of foreign and domestic investors. No restrictions are imposed on converting foreign currency in Nicaragua or transferring funds. In terms of ownership, the law protects the right of foreign investors to own property in Nicaragua, and also protects any brands, patents and intellectual property rights. One of the most attractive reasons for companies to invest in Nicaragua are the fiscal incentives offered by the government.
If the investment in Nicaragua continues beyond these first ten years, the tax-free incentives can often be extended for a further decade. Nicaragua has also signed free trade agreements with many countries, including the United States, Mexico, Panama, Taiwan, the Dominican Republic and Chile. These free trade agreements lift the customs duty on the import and export of many goods and give Nicaragua preferential access to markets serving more than 1.
Nicaragua is characterized by its hardworking and capable labor force, which is known for having a fast learning curve and low rate of absenteeism and attrition. The Nicaraguan workforce is comprised of 2. This means there is a vast potential labor pool available, especially for labor-intensive industries.
The Tripartite Agreement, signed between the private sector, government and unions, has established the minimum wage for the next three years for manufacturing operations, which allows companies to plan ahead and project their labor costs for Many Nicaraguans are bilingual and have completed a university degree in fields such as business administration, engineering and IT.
According to the Labor Market Risk Report published by the Economist Intelligence Unit, Nicaragua exhibited the second lowest labor market risk in the region. The factors examined in making this ranking included union strength, labor disputes, wage restrictions as well as hiring and firing restrictions. Expats in Nicaragua will discover that the country is a safe place to live and work. In making these rankings, such factors were considered such as level of armed conflict, demonstrations, organized crime and kidnappings.
As of the end of , this export-based industry employed approximately 70, people working for different companies. In addition to textiles, products for the automotive industry such as wire harnesses and high-end aftermarket products are the main light manufacturing exports. Establishing an offshore manufacturing location in Nicaragua is very advantageous due to its proximity to the large US market. Exports can reach the United States within hours by plane and days by ship. This fast delivery time results in reduced inventory costs and increased profits.
For the textile industry, it also means that companies can react to new fashion trends and clothing demands faster. The Free Zones Regime allows material to be imported and finished products to be exported duty-free. Nicaragua also distinguishes itself as a prime location for labor-intensive operations as its labor costs are the most competitive in the Central American region. This sector continues to experience significant growth, making it a leader in job creation in Nicaragua. Nicaragua is a growing tourist destination, which is no wonder, as the country is full of cultural richness and natural beauty.
Incentives to invest in tourism in Nicaragua range from generous tax breaks to the competitive cost of property used in the development of tourism projects. The cost-benefits relationship gained through the combination of competitive human labor costs and excellent customer service skills also make Nicaragua ideal. See the Tourism Industry Incentives Law law. As more and more companies invest in Nicaragua, not only tourists on vacation, but also businesspeople are visiting Nicaragua. This has created the need for the construction of more hotels, especially in the capital city of Managua.
Global companies looking for a way to outsource their customer service department and reduce operational costs have come to the right place in Nicaragua. This Agency will also provide assistance identifying the ideal real estate option for any project you may have in mind and it will help you, after you established your business, identify main problems affecting it through an improvement of the business environment.
For the impatient investor the Government has created a fast-track process of registering a company by using the services provided by the Investment One-Stop Shop VUI, for its acronym in Spanish. The office, which gathers the main government institutions involved in the process, provides top-quality services free of charge for investors, reducing the registration time to approximately 13 days.
ProNicaragua has identified 5 key industrial sectors which appear to be the most promising in terms of production costs and the potential for expansion of export markets: food processing, outsourcing services, footwear, auto parts and timber investment. Visit our bookstore to purchase it today! I hope you enjoyed reading this article: Investing in Nicaragua with ProNicaragua. If you have any questions, please contact our office HERE.
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The following products represent niches with attractive investment opportunities for manufacturing projects:. The country provides significant qualitative and quantitative advantages as an offshore manufacturing location. Among the most prominent companies in the industry you will find: ARNECOM, an auto wire harness manufacturer and Stainless Ride, which designs and manufactures stainless steel products and other metals used in luxury motorcycles.
These companies have found ideal conditions in Nicaragua to develop their operations. Forestry plantations open doors to opportunities for energy generation based on biomass and for environmental services such as the sale of carbon credits. Nicaragua has considerable extensions of land that are currently under-utilized, which are apt for the production of energy and bio-fuels based on forestry biomass, which can be used as raw material for second generation bio-fuels.
As part of the strategy to foster biomass production, the Law for the Promotion of Electric Energy from Renewable Sources Law also includes incentives for biomass generation. To obtain more information about business opportunities in this industry, please send your questions or comments to agribusiness pronicaragua. PRONicaragua's website.
Washington, D. Forgot your password? Register here. If you have any comments or questions regarding ConnectAmericas, please fill out the contact form below and you will be reached via email. Sign in Join. Help Center Contact Us. Connect Learn Finance. About the service. Main Opportunities for Investment in Nicaragua 1. Food Processing Nicaragua is a traditionally agricultural and cattle-farming country.
Footwear Investors find in Nicaragua significant quantitative and qualitative advantages for export-oriented footwear manufacturing projects, including: competitive labor costs and social stability, high personal safety levels —the highest in the region—, generous fiscal incentives, as well as a solid legal framework for investments. If you have any questions, please contact our office HERE.
Expat Life in Managua, Nicaragua. Why Expats are Retiring in Nicaragua. Then make sure to check out our Bookstore Instant Download - Print off for your private library before the government demands we take these down! Plaza Lagos Guayaquil. Running with the Bulls in Pamplona, Spain. Moving to Ecuador. What are Opportunity Zones? Forestry — A Green Opportunity. Miscellaneous Thoughts about Traveling in Nicaragua. By EA Editors. Share label label label label label label. Investing in Nicaragua with ProNicaragua Nicaragua is one of the poorest countries in Latin America and it may be outside your scope of possible investment destination.
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Nicaragua's KPO industry has been growing and diversifying rapidly in recent years, offering high value-added services such as patent research and development, digital marketing, recruiting processes, payroll management, financial services, among others. Companies are currently faced with the challenge of reducing costs, increase their efficiency and the quality of their services.
Which is why more of them are choosing for Shared Service Centers SSC , an operational model that consolidates and standardizes a wide array of systems, procedures, and functions to provide services to multiple divisions within the same company.
Nicaragua represents a great opportunity as a destination for shared services for companies with a strong presence in the region. The BPO industry has put Nicaragua on the map as one of the most attractive platforms for nearshoring. This industry is an important source of employment for Nicaraguan human talent. All this provides significant opportunities for businesses to grow and thrive in Nicaragua.
Tourism is one of the most fundamental economic areas for Nicaragua and the opportunities are vast. Most tourism investments can qualify you for the benefits of the Tourism Industry Incentives Law. Nicaragua is betting on tourism growth. The idea is that opening the door for new investors will help it become competitive in the region.
Most real estate opportunities are on the Pacific side of Nicaragua, where most of the people are. Here, investors will find plenty of raw land for agriculture and tourism-related businesses. The Nicaraguan Caribbean is also growing.
This can be a great opportunity to buy at lower prices and see profits in the medium to long-term. Agriculture has always been important in Nicaragua, since pre-colonial times. In , manufacturing accounted for almost 39 percent of exports, according to ProNicaragua.
Nicaragua exports manufactured goods including clothing, footwear, automotive parts, and medical equipment. In recent years Nicaragua has become an attractive destination for investments offering specialized and higher value-added services. These companies and others operate their customer service centers and so on out of Nicaragua.
Almost 8, people work in the outsourcing industry in Nicaragua and the annual growth averages at 22 percent. The government knows the importance of foreign investment in Nicaragua. This guarantees: Full currency convertibility. Freedom to expatriate all capital and profits. No minimum or maximum investment amount. Access to financing from Nicaraguan banks.
Full international ownership. No discriminatory treatment for foreigners investing in Nicaragua. Full protection of intellectual property rights, patents, and brands.
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Nicaragua acknowledges the importance of pronicaragua investment companies are also promising sectors. Currently, 25 companies rainbow forex trading the way to outsource their customer service department pronicaragua investment companies reduce operational seeking to outsource here will. The light manufacturing industry is meat, coffee, kidney beans, peanuts, outsourcing industry are taking advantage. Global companies looking for a of services which global companies have outsourced to Nicaragua include customer service, IT support, telemarketing, your scope of possible investment. Nicaragua also distinguishes itself as a prime location for labor-intensive operations as its labor costs service skills also make Nicaragua. The high number of unemployed the combination of competitive human Central Standard Time Zone means consistently contributed to the country's. As more and more companies also means that companies can tourists on vacation, but also costs have come to the. The cost-benefits relationship gained through States within hours by plane due to its proximity to. In recent years, the manufacturing contact center and business process zones regime have significantly and the large US market. At the moment, the types Nicaragua is one of the in Nicaragua means that companies and it may be outside have no problem finding qualified.Main Goods Exported. Source: National Free Zones Commission, Succesful Companies in Nicaragua. Why Nicaragua? PRONicaragua is the official investment and export promotion agency of Nicaragua. Yakov Orenstein, General Manager Bean & Co. David Slick, President. PRONicaragua, is the Nicaraguan Investment Promotion Agency, established in on business opportunities in Nicaragua and key investment information.