Living in Nicaragua: the ultimate expat guide

Nicaragua offers several residency options tailored to different expat profiles. Whether you're retired, an investor, or seeking a lifestyle change, the country provides accessible programs with relatively straightforward requirements compared to other destinations.

Tourist entry requirements

Citizens from the US, EU, Canada, UK, Australia, and New Zealand don't need a visa for tourist entry. Upon arrival, you'll receive a 90-day tourist permit for USD 10 (tourist card fee). Since 2024, an online form must be completed at least 7 days before arrival. Extensions are available for USD 25 per 30-day period, up to an additional 90 days. Budget USD 10 cash for the departure tax when leaving the country.

Pensionado visa: the retiree program

The Pensionado visa targets individuals over 40 years old with guaranteed monthly income of at least USD 600. This income can come from pensions, retirement accounts, or Social Security. The permit is valid for 5 years and renewable, requiring a minimum presence of 6 months per year in Nicaragua. This program remains one of the most accessible in Central America and provides access to the territorial tax system, meaning your pension won't be taxed locally.

Rentista visa: for passive income earners

If you have regular passive income but haven't reached retirement age, the Rentista visa may be your best option. It requires monthly income between USD 750 and USD 1,250 depending on current regulations. Acceptable sources include dividends, rental income, or investment returns. There's no age restriction for this visa. Duration is 5 years renewable with the same 6 months per year presence requirement.

Investor visa: for entrepreneurs

The Investor visa requires a minimum investment of USD 30,000 in Nicaragua's economy. Options include real estate, business creation, or approved agricultural/forestry projects. Priority sectors are tourism, agribusiness, and services. This visa offers reduced presence requirements: just 2 visits per year for cédula (national ID) renewal. Approval must be obtained from the Ministry of Finance (MIFIC) and immigration authorities. Important: The government tightened criteria between 2023 and 2025, now favoring investments that generate real, sustainable economic activity.

Pro Nicaragua program: tax incentives

The Law 344, known as the Pro Nicaragua program, provides substantial tax benefits for specific sectors. This scheme creates a personal free-trade zone with 10-year complete tax exemption. Eligible sectors include food processing, offshore services, tourism, and manufacturing. This option primarily targets entrepreneurs planning significant commercial operations in Nicaragua.

Required documentation and procedures

Regardless of residency type, you'll need to provide:

1. Passport valid for at least 6 months
2. 2 recent passport photos (white background)
3. Apostilled police clearance from your home country (covering last 3 years)
4. Apostilled birth certificate
5. Proof of income matching your visa category
6. Medical certificate
7. All documents translated into Spanish by a certified translator

Administrative costs range from USD 150 to USD 300 depending on residency type. Processing times average 6-8 months. The competent authority is the Dirección General de Migración y Extranjería (DGME), while investor visas also require MIFIC approval.

Nicaraguan citizenship pathway

After living as a permanent resident, you can apply for citizenship. Timelines vary by visa type: 2 years of residency with minimum 180 days per year for investors, or 4 years of continuous residency for Pensionado or Rentista holders. You'll need to demonstrate basic Spanish proficiency and knowledge of Nicaraguan culture and history. While dual citizenship isn't officially permitted (except for neighboring countries), this restriction is rarely enforced in practice. The Nicaraguan passport provides visa-free access to 126 countries according to the 2025 Henley Index.

US tax considerations

US citizens should note that the United States taxes worldwide income regardless of residency. While Nicaragua won't tax your foreign-source income, you'll still need to file US tax returns annually. You may qualify for the Foreign Earned Income Exclusion (approximately USD 126,500 for 2025) or foreign tax credits. The FATCA (Foreign Account Tax Compliance Act) requires reporting foreign financial accounts exceeding USD 10,000. Consult a tax professional specializing in expat taxation to ensure compliance.

Nicaragua's labor market presents unique characteristics worth understanding before relocating. With unemployment hovering between 3.3% and 4.8% depending on sources, and an employment rate of 65% of the working-age population, the country offers opportunities across several key sectors, though local wages remain modest.

Labor market overview

Average salary in Nicaragua stands at approximately USD 285 per month net after taxes, reflecting both the low cost of living and local economic realities. Minimum wage varies from USD 162 to USD 362 monthly depending on the sector. The standard workweek is 48 hours spread over 6 days. Employees receive 15 days of annual leave after one year of service, and maternity leave is 12 weeks at 100% pay. Social security contributions are 6.25% to 7% for employees and 21.5% to 22.5% for employers based on company size.

Growth sectors for expats

Agriculture remains the largest employer with major exports including coffee, beef, sugar, and peanuts. The services sector represents 49.7% of GDP and offers varied opportunities. Tourism shows sustained growth despite COVID impacts, creating demand for skilled personnel. Textile and apparel manufacturing accounts for 60% of exports. Outsourcing, particularly call centers and administrative services, is rapidly expanding. The technology sector experiences growing demand for IT skills, offering above-average local salaries.

Cities with best opportunities

Managua, the capital, naturally concentrates the most employment opportunities as the country's economic hub. León, with 140,000 inhabitants, specializes in IT and telecommunications sectors, with average annual salaries around USD 12,000. Granada focuses on tourism and services, while San Juan del Sur develops an economy around tourism, real estate, and expat services.

Starting your own business

The business registration process involves several mandatory steps. First, register with the Commerce Registry, then obtain your RUC (Registro Único de Contribuyentes)—your tax ID number. Next comes municipal registration and, if hiring employees, enrollment with social security (INSS). Sector-specific permits may be required depending on your activity. Timelines extend over several months depending on business type, and costs vary significantly by legal structure. Hiring a local attorney is strongly recommended, adding USD 500 to USD 1,000 but helping navigate Nicaragua's bureaucracy efficiently.

Available legal structures

Three main legal structures are available to entrepreneurs: Sociedad Anónima (SA) for larger projects, Sociedad a Responsabilidad Limitada (SRL) for SMEs, and sole proprietorship for smaller ventures. Your choice depends on your project scope, legal liability needs, and initial investment capacity.

Business support programs

The Pro Nicaragua program, established under Law 344, offers 10-year tax exemptions for strategic sectors. The DINAMICA II initiative, supported by the EU, Germany, and CABEI, provides seed funding for local entrepreneurs and may be accessible under certain conditions. These programs aim to stimulate economic activity and innovation in priority development sectors.

The table below summarizes key employment data for Nicaragua.

Sources: Numbeo, Playroll

Nicaragua operates a territorial tax system, one of Latin America's most advantageous for expats. This fundamental principle means only income generated within Nicaragua is taxable. If you earn foreign-source income—whether pensions, rental income, dividends, or other income generated outside Nicaragua—these amounts aren't subject to Nicaraguan taxation.

Personal income tax

Income tax (IR) in Nicaragua follows a progressive schedule applying only to locally-sourced income. Income up to NIO 100,000 annually (approximately USD 2,700) is tax-exempt. Beyond this, rates progress from 15% to 30% across income brackets. For employees, employers withhold tax at source monthly. Self-employed individuals must make quarterly advance payments and submit annual returns by March 31 of the following year. This advantageous structure allows expats living on foreign income to benefit from virtually zero Nicaraguan tax burden.

Value-added tax

VAT (IVA) stands at 15% and applies to most goods and services. Certain essentials receive exemptions, including medicines, basic foods, and school books. Businesses exceeding certain revenue thresholds must register as VAT collectors and file monthly returns. This tax represents the primary revenue source for the Nicaraguan government.

Property and real estate taxes

Property owners pay an annual property tax (IBI) calculated on the cadastral value. Rates typically range from 1% to 1.5% of assessed value. Municipalities collect this tax to fund local services. When selling property, the seller pays a capital gains tax of 10% on realized profit. However, exemptions are possible if the property was your primary residence and you occupied it for a minimum period.

Inheritance and gift taxes

Nicaragua levies a progressive inheritance and gift tax reaching up to 15% of transferred value. Rates vary according to the relationship between donor and beneficiary. Transfers between spouses and direct children generally benefit from reduced rates, while beneficiaries without direct family ties face the highest rates. Proper estate planning can help optimize these costs.

Withholding on dividends and interest

Dividends paid by Nicaraguan companies are subject to 10% withholding. Similarly, interest paid on local accounts or investments faces withholding of 10% to 15% depending on the financial instrument type. Financial institutions automatically deduct these amounts before payment to beneficiaries. For non-residents, these rates may be modified by international tax treaties, though Nicaragua has signed few such agreements.

Tax treaties and international considerations

Nicaragua has limited tax treaty networks. The absence of treaties with most countries means no automatic elimination of double taxation. However, the territorial system largely resolves this issue for expats: your foreign pensions and income won't be taxed in Nicaragua. You'll still need to understand your home country obligations. US citizens must continue filing US tax returns regardless of residency due to citizenship-based taxation. UK citizens should review their tax residency status and obligations. Australian and Canadian expats should consult with tax professionals in their home countries regarding non-resident status.

Filing requirements and deadlines

Annual income tax returns must be submitted by March 31 each year for the previous fiscal year. Quarterly advance payments are due for self-employed individuals and certain professions. The competent tax authority is the Dirección General de Ingresos (DGI), similar to the IRS or HMRC. Engaging a local accountant is strongly recommended to ensure compliance and optimize your tax position within legal parameters.

Nicaragua operates a mixed healthcare system combining a free public network with private facilities of varying quality. Understanding available options is essential for ensuring care that meets your needs and budget.

Public healthcare system

Nicaragua's public health system, managed by the Ministry of Health (MINSA), provides completely free care for all residents, including expats with residency permits. The system is organized around local health centers and regional hospitals grouped into Local Systems of Comprehensive Health Care (SILAIS). Basic care, consultations, vaccinations, and emergency hospitalizations are accessible without charge. However, the public system faces significant limitations: sometimes lengthy wait times, aging equipment in certain facilities, periodic medication shortages, and language barriers for non-Spanish speakers. Care quality varies considerably by region, with major cities like Managua having better-equipped facilities.

Private sector: clinics and hospitals

The private sector offers an alternative with reduced wait times, modern infrastructure, and staff often fluent in English at expat-frequented establishments. Major private clinics concentrate in Managua, notably Hospital Metropolitano Vivian Pellas and Hospital Bautista, which feature state-of-the-art equipment and 24/7 emergency services. In Granada and San Juan del Sur, smaller clinics handle routine consultations and first-level emergencies. Private sector fees remain very affordable for expats: a medical consultation typically costs USD 25 to USD 50, and even minor surgical procedures remain accessible compared to Western standards.

Private health insurance

Obtaining private health insurance is strongly recommended for comprehensive coverage and easier access to private facilities. Several options exist: local Nicaraguan insurers offer packages starting from USD 50 to USD 150 monthly with variable coverage caps. For more extensive protection including medical evacuations to Costa Rica or the United States for serious conditions, international insurance is preferable, with monthly premiums ranging from USD 150 to USD 400 depending on your age and medical history. These policies generally offer worldwide coverage and freedom to choose your healthcare providers.

International health insurance options

Expats should carefully evaluate international health insurance plans that provide coverage both in Nicaragua and globally. Major providers like Cigna Global, Allianz Care, and IMG offer plans specifically designed for expats. These typically include emergency evacuation—critical given Nicaragua's limited specialized medical facilities. Policies range from basic coverage around USD 200 monthly to comprehensive plans exceeding USD 500 monthly for families. Compare deductibles, coverage limits, and whether pre-existing conditions are covered before selecting a plan.

Pharmacies and medications

Pharmacies are numerous in Nicaragua, especially in urban areas. Many prescription-only medications in Western countries are sold over-the-counter, though this practice carries risks of inappropriate self-medication. Medication prices are significantly lower than in Europe or North America. However, verify expiration dates and product origin. For chronic treatments, bring an initial supply when relocating and ask your doctor for prescriptions listing active ingredients rather than brand names, which may differ in Nicaragua.

Vaccinations and health precautions

No vaccines are mandatory for entering Nicaragua, but several are strongly recommended: Hepatitis A and B, typhoid, and updated tetanus-diphtheria-polio. Depending on areas you'll frequent, particularly coastal and rural regions, yellow fever vaccination may be advisable. Malaria exists in some rural areas of the Atlantic regions; preventive treatment may be prescribed for extended stays in these zones. Tap water isn't potable in most areas of Nicaragua; use bottled water or filter water before consumption. Dengue fever is present, especially during the rainy season; use repellents and wear covering clothing during mosquito activity hours.

Nicaragua's education system offers several options for expat families, ranging from local public schools to international institutions delivering foreign curricula. Your choice depends on educational goals, budget, and planned stay duration.

Local education system

Public education in Nicaragua is free and compulsory from ages 6 to 12. The system divides into three cycles: Primary (Primaria) ages 6-12, Secondary (Secundaria) ages 12-15, and Technical or Preparatory Education ages 15-18. Instruction is entirely in Spanish, providing complete linguistic immersion for non-Spanish-speaking children. Public schools sometimes struggle with limited resources, overcrowded classes, and variable infrastructure by region. Private local schools, more affordable than international schools, offer better supervision with annual tuition generally between USD 500 and USD 1,500.

International schools in Managua

The capital hosts the country's main international establishments. American Nicaraguan School (ANS) is the most prestigious, serving approximately 1,600 students from kindergarten through high school. It offers a complete American curriculum preparing students for the US High School diploma, internationally recognized. Tuition ranges from USD 8,800 to USD 13,300 annually depending on grade level. The school provides varied extracurricular activities, quality sports facilities, and bilingual English-Spanish supervision. Lincoln International Academy also follows an American curriculum with similar fees. Notre Dame School, a Catholic institution, offers bilingual education with strong religious values component, for slightly lower fees between USD 4,000 and USD 8,000 annually.

Options in Granada

Granada, a city popular with expats, has several suitable educational options. Colegio Centro América welcomes many expat children with a bilingual program and more affordable tuition than Managua, generally around USD 3,000 to USD 5,000 annually. Well-regarded local private schools also offer bilingual education at even more accessible rates, allowing good integration while maintaining decent English proficiency.

San Juan del Sur and coastal areas

In San Juan del Sur, a beach resort popular with expats, San Juan del Sur Day School offers a bilingual program from kindergarten through primary with about 100 students. The school follows an American calendar with annual fees between USD 3,500 and USD 6,000. It's an appreciated option for families wanting quality education in a more relaxed setting than the capital. For secondary school, some families opt for Managua boarding schools or consider distance learning solutions.

Distance learning and homeschooling

Homeschooling is legal and increasingly practiced by expat families in Nicaragua. This option offers complete flexibility over curriculum and allows maintaining your home country's educational program. Several distance learning platforms provide complete accredited programs (US-based programs, UK curriculum options, etc.). This solution requires significant parental investment and works best for families already experienced with home education or with one parent available full-time.

Higher education

For young adults, Nicaragua has several universities, with main institutions being Universidad Nacional Autónoma de Nicaragua (UNAN) with campuses in Managua and León, Universidad Centroamericana (UCA), a Jesuit establishment renowned for social sciences and engineering programs, and Universidad Politécnica de Nicaragua (UPOLI) specializing in engineering and technology. Tuition at private universities ranges from USD 1,000 to USD 3,000 annually, remaining very affordable compared to Western standards. Instruction is primarily in Spanish, with some bilingual programs at certain private institutions. International recognition of Nicaraguan degrees may require equivalency procedures; check with relevant authorities in your home country.

Nicaragua's real estate market offers attractive opportunities with prices well below Western standards. Whether looking to buy or rent, options vary based on budget and lifestyle preferences.

Purchase prices

Purchase prices vary significantly by location and property type. In Managua, a city-center apartment averages USD 1,300 per m², while peripheral areas drop to USD 900 per m². In Granada, the colonial city popular with expats, prices range from USD 1,000 to USD 1,500 per m² for renovated properties in the historic center. San Juan del Sur, on the Pacific coast, displays comparable rates with premiums for ocean-view properties. León remains more affordable with prices around USD 700 to USD 900 per m². A comfortable 2-3 bedroom house can be acquired for USD 80,000 to USD 150,000 depending on city and amenities.

Rental market: monthly rates

Rentals offer great flexibility, particularly appreciated during initial settling months. In Managua, a one-bedroom city-center apartment rents for USD 400 to USD 600 monthly, versus USD 250 to USD 400 in peripheral areas. For a three-bedroom in the city center, expect USD 700 to USD 1,000 monthly. In Granada, rates are comparable with a two-bedroom colonial house around USD 500 to USD 800. In San Juan del Sur, rates vary greatly with tourist season, ranging USD 400 to USD 1,200 monthly for annual leases. León offers the most affordable rents: USD 250 to USD 450 for a one-bedroom apartment.

Expat-popular neighborhoods

In Managua, the Las Colinas and Los Robles neighborhoods concentrate high expat populations with international shops, restaurants, and adapted services. These residential areas offer security and amenities but display slightly higher prices than average. In Granada, the historic center attracts for its colonial charm and cultural life, while peripheral areas like Calle La Calzada offer good compromise between authenticity and tranquility. In San Juan del Sur, the hills overlooking the bay are prized for panoramic views but require a vehicle for daily transportation.

Purchasing process for foreigners

Foreigners can freely purchase real estate in Nicaragua without particular restrictions. Hiring an attorney specializing in real estate is strongly recommended to verify property titles, ensure absence of disputes, and manage the transaction. Notary fees represent approximately 3% to 4% of purchase price. Transfer tax amounts to 1.5% of property value. Expect 30 to 60 days to finalize a transaction. Be cautious of properties in the maritime terrestrial zone (first 50 meters from high tide) where ownership rules are more complex and may limit your rights.

Rental agreements: practical details

Rental contracts are generally concluded for minimum one year, with renewal possibility. Landlords typically request one month's rent as security deposit plus first month in advance. Utilities (water, electricity, internet) are often tenant responsibility and can add USD 80 to USD 150 monthly depending on consumption. Leases may be written in Spanish only; use a translator if necessary to fully understand all clauses. The law protects tenants more than landlords, but as an expat, respectful behavior and clear communication with your landlord will prevent most issues.

Utilities and connectivity

Electricity in Nicaragua costs relatively high compared to overall cost of living, expect USD 0.20 to USD 0.25 per kWh. Power outages are rare in major cities but can occur in rural areas. Running water is generally available but not potable, necessitating bottled water purchases or filtration system installation. Residential internet subscriptions vary from USD 30 to USD 60 monthly for decent fiber connection in urban areas. Mobile 4G coverage is satisfactory in main cities but may be limited in rural or mountainous zones.

Relocating to Nicaragua requires careful preparation to ensure a smooth transition. Here's a detailed checklist of essential steps to complete before and after your arrival.

Before departure: essential preparations

1. Verify document validity: Ensure passports are valid at least 6 months beyond your planned arrival date. Gather documents needed for residency application: police clearance, birth certificates, all apostilled.
2. Arrange shipping of belongings: Contact international moving companies specializing in Central American shipments. Compare sea freight options (cheaper but 6-8 weeks) and air freight (faster but expensive). Prioritize essentials and sell or donate excess.
3. Cancel subscriptions and contracts: Anticipate notice periods for housing, internet, phone, electricity, insurance subscriptions. Transfer or close bank accounts according to your financial strategy.
4. Arrange health coverage: Subscribe to international health insurance before departure. Build a medication reserve for initial months if following chronic treatment.
5. Notify authorities: Declare your departure to tax administration, social security agencies, pension funds if applicable. Request tax residency certificate if necessary.
6. Prepare pet arrival: If traveling with pets, verify Nicaragua's health requirements: veterinary certificate less than 10 days old, updated vaccination record (rabies mandatory), recent antiparasitic treatment.
7. Learn Spanish: Even basic proficiency will significantly ease integration. Take classes before departure or use mobile apps to begin learning.
8. Plan finances: Open an international bank account or plan to open one quickly upon arrival. Inform your bank of your move to avoid card blocks. Build a cash reserve in USD for initial expenses.

Upon arrival: first steps

1. Find temporary accommodation: Book lodging for the first weeks while visiting and choosing your permanent residence. Short-term furnished rentals are numerous in expat areas.
2. Obtain local phone number: Buy a local SIM card from operators Claro, Movistar, or Tigo. Prepaid plans are flexible and affordable (USD 10-20/month).
3. Open bank account: Major banks (BAC, Bancentro, Lafise) accept foreigners with passport and proof of address. A modest initial deposit (USD 50-100) is generally required.
4. Register with your embassy: Register with your country's nearest embassy or consulate. This facilitates administrative relations and allows receiving important information.
5. Launch residency application: Contact an attorney specializing in immigration to start your residency file. Gather required documents and follow your attorney's advice to avoid errors.
6. Find doctor and dentist: Identify English-speaking healthcare professionals if you don't yet speak Spanish. Expat communities are excellent sources for recommendations.
7. Join expat communities: Participate in events, join local Facebook groups ("Expats in Nicaragua," "Granada Expats," etc.). These networks are invaluable for practical advice and quickly creating social connections.
8. Buy or rent vehicle: Depending on residence location, a vehicle may be necessary. Public transportation is limited outside major cities. Research vehicle import formalities or local purchase options.

Personal belongings import

New residents generally benefit from customs duty exemptions for importing personal effects and furniture within 6 months of obtaining residency. You'll need to provide a detailed inventory of goods and prove you owned them before arrival. Use a customs agent to facilitate procedures. Vehicles face high import taxes; purchasing locally is often more economical.

Nicaragua offers impressive cultural and natural wealth for a country of this size. Between active volcanoes, paradise beaches on two oceans, preserved colonial cities, and living traditions, leisure opportunities abound to enhance your expat daily life.

Exploring colonial heritage

Granada, founded in 1524, ranks among the oldest colonial cities in the Americas. Its cobblestone streets, colorful baroque churches, and colonial houses with interior patios make it an architectural gem. Don't miss Granada Cathedral, Convento San Francisco housing a pre-Columbian museum, and a stroll along Calle La Calzada lined with restaurants and cafes. León, the second major colonial city, rivals in beauty with its monumental Basilica-Cathedral, Central America's largest, inscribed on the UNESCO World Heritage list. The city is also known for its role in revolutionary movements and houses several museums recounting this tumultuous history.

Natural adventures and volcanoes

Nicaragua has 19 volcanoes, several accessible to hikers. Volcán Masaya, 20 km from Managua, allows observing an incandescent lava lake from its crater—a striking experience accessible in late afternoon. Cerro Negro, near León, offers the unique possibility of descending its black ash slopes by "volcano boarding," an activity prized by thrill-seekers. Isla de Ometepe, formed by two twin volcanoes emerging from Lake Nicaragua, combines hiking, freshwater beaches, archaeological sites, and peaceful atmosphere. This island is accessible by ferry from San Jorge and merits a several-day stay.

Beaches and water sports

The Pacific coast offers excellent conditions for surfing, notably at San Juan del Sur hosting numerous renowned beaches: Playa Maderas and Playa Remanso for experienced surfers, Playa Hermosa for beginners. The region also provides diving, snorkeling, and sport fishing. On the Caribbean coast, the Corn Islands (Big Corn and Little Corn) offer turquoise waters, white sand beaches, and authentic Caribbean atmosphere with Afro-Caribbean influences. Little Corn Island, car-free, is particularly prized for its relaxed atmosphere and preserved underwater environment.

Cultural life and events

Nicaragua celebrates numerous traditional festivals mixing Catholic and pre-Hispanic influences. Holy Week (Semana Santa) in March-April features impressive processions, notably in Granada and León. The Festival of Santo Domingo in August in Managua is one of the country's most important popular celebrations. Each city has its own patron saint festivals with parades, folk dances, and fireworks. Nicaragua's artistic scene, though modest, offers art galleries in Granada, traditional and contemporary music concerts, and occasional cultural festivals.

Local gastronomy

Nicaraguan cuisine, simple and flavorful, relies on corn, red beans, rice, meat, and tropical fruits. Typical dishes include gallo pinto (mixed rice and red beans, served at breakfast), vigorón (yucca, cabbage salad, and chicharrón), nacatamales (Nicaraguan tamales more elaborate than regional cousins), and indio viejo (beef stew with corn). Expats also appreciate Flor de Caña rum, locally produced and internationally recognized, along with abundant and inexpensive exotic fruits at markets.

Sports activities and clubs

Major cities, notably Managua and Granada, have modern gyms with monthly memberships between USD 30 and USD 50. Yoga and Pilates are popular with the expat community, with studios in Granada and San Juan del Sur. Golf enthusiasts can join Club Terraza in Managua, the country's only 18-hole course. The climate allows year-round cycling, and cyclist groups organize regular outings. For families, water parks and recreational spaces are multiplying around Managua and Granada.

Social life and expat community

Integration into local and expat communities is facilitated by numerous meeting points. Weekly markets, group Spanish classes, charitable events, and hobby clubs allow quickly forming friendships. Expats regularly gather at bars and restaurants run by other foreigners, creating a mutual support and experience-sharing network. Don't hesitate to participate in local community activities—an excellent way to build authentic connections with Nicaraguans.

Nicaragua ranks among Central America's and even the world's most affordable destinations. Its cost of living is significantly lower than Western standards, allowing expats to enjoy comfortable living on a modest budget. Data below comes from Numbeo and reflects average prices observed in July 2025.

Food and dining

Food represents a very reasonable expense category in Nicaragua. A meal at an inexpensive restaurant costs approximately USD 5, while dinner for two at a mid-range restaurant runs USD 30. A fast-food combo meal averages USD 7. For groceries, a dozen eggs costs USD 2.50, a liter of milk USD 1.30, a kilogram of rice USD 1.40, a loaf of bread USD 1.80. Local fruits and vegetables are particularly inexpensive at markets: expect USD 1.50 per kilo for tomatoes, USD 2.50 for imported apples. Fresh chicken sells for USD 5.50 per kilo, beef USD 8. A decent bottle of table wine costs USD 10, local beer at supermarkets USD 1.50.

Housing and utilities

As detailed previously, rents vary considerably by location. Outside major cities like Managua and Granada, very affordable housing is available. Monthly utilities (electricity, water, gas, internet) for an 85 m² apartment average USD 120. Electricity represents the costliest item, especially with intensive air conditioning use. A 60 Mbps high-speed internet subscription costs approximately USD 40 monthly.

Transportation

Public transportation is extremely inexpensive: a local bus ticket costs USD 0.40, a monthly pass USD 20. Taxis lack meters; negotiate price before departure—an in-town ride generally runs USD 3 to USD 5. If you own a car, gasoline costs approximately USD 1.10 per liter. Purchasing a reliable used vehicle starts around USD 8,000. Ride-hailing apps like Uber operate in major cities with rates comparable to traditional taxis.

Leisure and services

A monthly gym membership costs USD 30 to USD 50. A cinema ticket runs USD 5. Private Spanish lessons negotiate at USD 10 to USD 15 per hour. A men's haircut costs USD 7, women's approximately USD 15 to USD 25. Housekeeping services are very affordable: a housekeeper working 4 hours weekly costs approximately USD 60 to USD 80 monthly.

The following two tables present typical monthly budgets for a single person and a four-person family, providing realistic expense projections.

Source: Numbeo, July 2025 data

For a four-person family (two adults and two children), the monthly budget naturally increases with more spacious housing and schooling expenses if choosing international education.

Source: Numbeo, July 2025 data

International comparison

To put these figures in perspective, Nicaragua's cost of living is approximately 50% lower than the United States excluding rent, and 60% cheaper with rent included. Compared to the UK, Canada, or Australia, the gap is similar, allowing retirees and remote workers to benefit from significantly higher purchasing power. A couple with USD 2,000 monthly pension or income can live very comfortably in Nicaragua with savings potential, whereas this amount would barely cover basic needs in major Western cities.