The rates, outlined in Law 822, apply to both movable and immovable property requiring public registration, with the tax base calculated using the higher of the sale price or cadastral value, and payment is required before registration can be completed.
Nicaragua’s tax authority (DGI) has reminded taxpayers, on 19 March 2026, of the progressive tax withholding rates applicable to property transactions.
The DGI clarified that definitive income tax withholding rates on capital gains from transferring movable and immovable assets requiring public registration follow a seven-tier progressive structure based on the property’s value in US dollars.
| Property Value Range (USD) | Withholding Rate |
| Up to USD 50,000 | 1% |
| USD 50,000.01 to USD 100,000 | 2% |
| USD 100,000.01 to USD 200,000 | 3% |
| USD 200,000.01 to USD 300,000 | 4% |
| USD 300,000.01 to USD 400,000 | 5% |
| USD 400,000.01 to USD 500,000 | 6% |
| Exceeding USD 500,000 | 7% |
According to Article 83, paragraph 2 of Law 822, the taxable base is determined by the higher amount between the sale price stated in the public deed and the cadastral value.
Payment of this withholding tax must be completed before registration with the relevant registry office. Under Article 66, paragraph 3 of the regulations to Law 822, registration offices cannot process property transfers without proof of tax payment, making this a mandatory prerequisite for completing any property transaction.
