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South AmericaCentral AmericaNI

Nicaragua

AI Agent Legal Status: restrictive · Autonomy: none

restrictive
2Score /10

Legal Framework

Nicaragua has no AI or crypto-specific legislation. The BCN (Central Bank) has issued warnings about cryptocurrency. Political isolation and US sanctions on government officials limit international business operations. Free trade zones exist but are primarily for manufacturing.

Key Laws & Regulations

  • BCN (Banco Central de Nicaragua) crypto warnings
  • Ley de Firma Electrónica (2010)
  • Código de Comercio

Business Formation

Sociedad Anónima (SA) is standard. Registration through Registro Público Mercantil. Bureaucratic process. Political climate discourages foreign investment. Free trade zones available but focused on traditional industries.

Tax Implications

Corporate income tax at 30%. VAT at 15%. Free trade zone benefits for qualifying manufacturers. No crypto-specific tax framework. US sanctions on government officials may affect banking relationships.

Opportunities

Very limited in current political environment. Low-cost operations possible if political risks are acceptable. Future political transition could change landscape.

Highlights

Low operating costs. Free trade zone infrastructure exists. Geographic position in Central America.

Risks & Challenges

Political authoritarianism and international isolation. US and EU sanctions on officials. Limited tech infrastructure. Brain drain. Weak rule of law and property rights. Not a viable jurisdiction for most international digital operations.