Nicaragua: The World’s Best-kept Retirement Secret

"Nicaragua is a nation at peace. Its government is democratically elected, committed to a free-market economy and eager to attract foreign investors. A recent study by the Inter-American Institute on Human Rights and a survey of police forces in the Americas show that Nicaragua is the safest country in Central America and one of the safest countries in the world. Recent studies also point to Nicaragua's low reported crime rate -- lower than in Germany, France or the U.S.
The current president, Enrique Bolaños Geyer, elected in January 2002, is committed to progress and development for Nicaragua. He says, "Today's Nicaragua is working to meet the challenges of global competition, and I offer my government's support for your future business activities in our country."
In September 1999, Nicaragua enacted the most attractive -- and most aggressive -- tourism-incentive law in Latin America. If you've ever toyed with the idea of owning your own B&B, running a sailboat charter, leading adventure treks into the jungle, dishing up meals in your own restaurant or operating any kind of tourism-related business, Nicaragua is the place to do it.
Law 306 is sweeping in scope and offers hard-to-beat benefits for investors who take advantage of the program. If your business qualifies, you pay no income- or real-estate taxes for up to 10 years. You can bring in (or buy locally) all the supplies you need -- from furniture and boats to linens and cash registers -- tax- and duty-free.

If you're simply in the market for a place to relax and spend a few months a year in a quiet, safe, affordable retreat, again, Nicaragua is hard to beat. The country's retiree incentive program is much like Costa Rica's was in the 1980s, attracting thousands of expatriates. To be eligible, you need only be over 45 and have a monthly income of at least $400.
The benefits come mostly in the form of tax incentives. As a foreign retiree, you:
• pay no taxes on any out-of-country earnings.
• can bring into Nicaragua up to $10,000 of household goods for your own home, duty-free.
• can import one automobile for personal or general use duty- and tariff-free, and sell it after five years, tax-free.
• can import an additional vehicle every five years under the same duty exemptions.
The cost of living in Nicaragua is a fraction what you're used to paying up north. Our sources on the ground say a two-week supply of pork and beef costs about $65. For enough fresh vegetables to feed four or five people daily for a week, expect to pay about $55. A 30-minute consultation with a U.S.-trained physician will cost you about $35. You can hire a maid who will cook, clean and do your laundry for less than $120 a month; and you'll spend just $25 on a wonderful restaurant meal of local delicacies, including with wine and dessert. " read more

By Kathleen Peddicord, International Living