Nicaragua is situated in Central America with the Caribbean Sea to the east, and the Pacific Ocean to the west. Nicaragua has a multi-ethnic population with approximately 6 million inhabitants. Nicaragua is one of the poorer countries in the Americas where around half of the people lives below the poverty line. The country’s key attraction is the biological diversity, active volcanoes, and the warm tropical climate makes it to a popular tourist destination.
The growing tourism sector has positively affected the commercial, agricultural, finance and the construction industry. Mining, petroleum refining, and services are becoming more and more important and viable, playing a major role in workforce growth. In recent years, Nicaragua has experienced more political stability and some significant economic growth.
Contracting in Latin America is not a simple task and has many on-costs for employers. Most in country tax laws do not recognise contractors per se, hence contract workers may need to be remunerated as employees, taxes withheld and paid to various city, state and federal governments, and reserve funds held for other entitlements until end of contract. Please contact CXC Global for professional advice on the specific legislation applying in the country in order to facilitate contractors and foreign nationals working in Nicaragua. Forward planning is of the essence to optimize costs. Nicaragua has entered into Double Taxation Treaties with other countries.
For foreign national contract workers, contracting in Nicaragua, it would be wise to consult with CXC Global on the best way to structure, and how best to balance your taxation.
With our extensive experience and expertise in contractor management, and assisting organisations with their contingent workforce, CXC Global has the resources and solutions to manage the administration process associated with contracting in Nicaragua, facilitating accounting services and administration, local tax calculations, social security registration, tax balancing and preparation of personal income tax return at the end of the tax year.