North & Central America
Nicaragua tax rates 2026
A territorial system with a 30% top rate on income and corporate profit, subject to a 1–3% minimum, and a 15% IVA.
Territorial
Last verified
The taxes
| Personal income (top) | 30%Progressive employment income to 30%. Territorial, so only Nicaraguan-source income is taxed. |
|---|---|
| Corporate income | 30% |
| Capital gains | 15% |
| VAT / IVA | 15% |
| Dividends (WHT) | 15% |
| Interest (WHT) | 15% |
| Royalties (WHT) | 15% |
| Social security (employee) | 7% (INSS) |
| Social security (employer) | 21.5–22.5% (INSS, by firm size) |
| Wealth tax | None |
| Inheritance / estate | Taxed as occasional gains, progressive ~1–3% |
| Property tax | IBI ~1% of cadastral value (municipal) |
| Other | Corporate tax is the higher of 30% of net or a 1–3% minimum on gross income |
How the system works
- Tax system
- Territorial
- Foreign income
- Largely outside scope (territorial)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.