bringing your car to Nicaragua
Submitted by mhickey on Tue, 2013/01/01 - 13:17.
Here's an update from Nicaragua and bringing your own car down. My advice is DO NOT DO IT. It is the biggest pain you could ever imagine. The drive down was fine thanks to Billy & Bette, maybe we got lucky who knows. I would do that again in a minute. Now as far as the car goes. I've been working on this for about 5 months and hopefully on Jan. 20th I'll get my license plate. let's go back a bit. When you come into Nicaragua your passport is stamped for 90 days and your car is stamped for 30 days. After the first 30 days you can renew your car at the DGA (in Managua) for 30 more days. After that you can't drive it legally. In the past you could just drive it to Costa Rica turn around and come back, they frown on that now and legally you can't do that. You can play dumb and hope for the best you can forge the document and hope for the best because you will be pulled over by the police at some point. Or the legal way is put your car in the Aduana storage lot called Triumpho. The first time my car was there it was there for 7 weeks and nothing was accomplished. Some people will say they will steal things from your car there or rearrange you plug wires so you car won't run correct. And then charge you to fix it. I didn't have this problem. Storage fees aren't much but renting a car for 7 weeks is expensive. Thankfully Billy again saved our butts and his organization rented us one of their suv's. the bad news is it was an American 6 cylinder and the gas cost a fortune but it was still way cheaper than renting a car for anywhere from $350 - $500 week. A friend of ours that we met down here knew a broker that may be able to help. And he did, he got our car out but we had (6) hours to get to Costa Rica to reset the visa on the car. We had to spend (72) hours in Costa Rica for this. Costa Rica is very expensive. Legally they can't do what they did but it worked we got the car back into Nicaragua for 30 more days. At the end of that 30 days we had to do it again. So this time we went to Honduras because you can go in one crossing drive a bit north and come back in another. Now at the second crossing coming back into Nicaragua now keep in mind it's only about a (2) hour trip through Honduras to the other border. Naturally they said well you're suppose to spend (72) hours but for $95.00 we can get you through. Well that worked so we were good for (30) more days. After that since I was almost done getting my residency and had the paperwork to prove it we were able to go back to the DGA and buy more days. We only bought (20) more days thinking by then it would be done HAHAHAHAHAHA!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!. At the end of those (20) days the car had to back to the Aduana storage lot so they could finish the paperwork. I was told by my broker no more than (1) day, (8) days later I got it back. OK, you CANNOT start the car process until you have your residency. It takes at least (3) months (90 days) to get your residency but you can only drive your car legally in Nicaragua for (60) days. In order to get you residency you must go thru Intur. These are the most incompetent group of people, well maybe not the most because during this process you will come across some doosies. I don't think you can do your residency from the states because there is a home visit from Immigration that requires you to be here. Immigration can't do anything for you until Intur gets off of their butt. In order to start the car process you have to be approved by Intur. This process is endless through it all every question is answered by manana. I qualify for a retirement visa which means I can get one car in no older than (7) year for free (which means no taxes). I could have got my car from the Aduana at anytime if I paid the taxes. Which is %45 of what they think the car is worth, it doesn't matter what the bill of sale says. This whole process will wear you out. The residency cannot be avoided but the car can. I'm sure I have left
But, What's The Alternative
if you want the convenience and security of your own vehicle ?
Every decision has consequences; it's managing those consequences that is important.
There are a number of ways of skinning most cats . . .. Nicaraguan cats being no different.
Generic comment
Your experience sounds pretty typical. In general, I think trying to nationalize a car in Nicaragua is not worth the trouble but, should you decide to do it, do your homework. The story you have told does not have to be the norm.
You will find lots of stories about nationalizing a car here on NL. There are also some untold stories about other ways to make this process happen. The most obvious mistake was bringing in the car before you got your residency.
As for working with INTUR, you don't have to go through them to get Pensionado residency. You can still work directly with Migración which, in general, will take less time just because there is one less player in the process. The relative advantages and disadvantages or each approach have been discussed here. From what I have heard, what you saw as incompetence with regard to INTUR was more likely to be the result of an internal turf war between them and Migración.
ditto
to what fyl said. You have basically NO rights as a pensionado until you are a pensionado!!! Or at least you are far enough in the process that they will give you a nod to do what you want to do. I went thru this here just getting a license plate for a car purchased new here. I got the plates late in the process when I could give transito docs from Intur showing I was almost there. By that time we were really tired of seeing each other for the constant extensions on the temporary permit. Live and learn.
Options? 1) get your residency wrapped up before you try to jump into any other hoops. 2) Buy a used car here and hope they let you register it without residency 3) rent a car or a car and driver Cabs can be rented by the hour or the day--you get a vehicle driver and a vehicle guard all wrapped in one. 4) don`t get a car--motoring here is rarely a pleasure and a substantial cost and risk.
Welcome aboard, but don`t plan on the comforts and conveniences of the consumer societies.
"Anything that is complex is not useful and anything that is useful is simple. This has been my whole life's motto."
Mikhail Kalashnikov, Russian inventor
...
I agree with everything you say except that nowhere here anymore will you be able to register your vehicle unless you are a resident. Nonetheless, you can own the vehicle, operate it, obtain insurance and sell it without registering it. On the other hand, driving it out of Nicaragua will be more difficult. As well, in case of accidents your face certain legal liabilities in certain situations, but the situations themselves come up rather rarely. I will say that you are clearly better off registering your car if you can do so.
I'm Going To
try to go the SA route initially since I'm going to need the SA anyway.
I have no idea what I'm getting into exactly, just know that it will give me some flexibility in terms of registering vehicles, dealing with Claro, Fenosa.
Please cross your fingers and say a prayer for me; I suspect I'll need them.
I want to do the pensionado thing eventually.
Dude, you're doing everything backwards sort of
Some people need a lawyer to work things out. I think you're one of them. People do get away with a lot because Nicaraguans aren't Yankees on the enforcement thing, but there are gotchas from time to time with that.
A law may not be enforced for years, then it will be enforced. If you're sure you can rock and roll with the best of them and that the right Nicaraguans have your back, then go for acc724's tactics (he has a Nicaraguan wife which I suspect helps). My own preferences is to assume I need to follow the rules -- and so far, I really haven't had a problem with following them and they haven't been onerous.
Rebecca Brown
my wife usally..wont go with me..
.i embarrass her..oh..she is a lawyer..know the system..before u go into a office..know what ure rights are..and push them to the limit..i brought a gun in legally from hondurus.when i moved here.had a cop..{a female} really breaking my balls..went over her head to the corneal in charge at plaza del sol..he called for a meeting between her and me..she walked in..went over and got a cup of coffee..then said good morning to the corneal..yep..the corneal..wasnt much help..they have sort of a big tall building there..the big bosses office was there..got to his personnel Secretary..she said he couldnt see me..but she typed me a letter that he signed..on the spot..saying give me the permit..oh..the cop..put the serial number down wrong..caught it asked her to fix it which she did..and got my pistol permit..this was way before my wife went to law school..and for the average person..i think getting a lawyer helps..im retired so i enjoy the running around
I wonder if you're getting the advantage...
...of being thought crazy. People here are a lot kinder to the touched than they are in the US (except for the boys around ten or eleven who tease them).
On getting residency -- my impression is that it's a moving target, with tweeks to reduce the need for lawyers for simple cases. If I were doing it now, I'd pay attention to what Fred Lamb did.
I enjoyed learning about Nicaragua while going through the process. Found out that the expats exaggerated how difficult all the agencies were. Aduana hasn't been a problem, even, but then I'm not trying to smuggle in multiple items for resale. My default position now is that if people are having problems here, they're probably doing something wrong and think the Nicaraguans aren't computerized to keep track. I figured that one delay on my residency was getting another visa renewal out of me -- the expats all said the Nicaraguans weren't that organized; the Nicaraguans all laughed and said, "Of course." And everyone I know who applied had the same things happen. Anyone who says you're going to get the cedula in less than 3 months is pulling your leg. They lose the renewal money if they do that. I got notice that I'd been approved a week after my passport came back with the stamp from Managua.
My first impression was that if people in the US are bored with the bureaucratic routine, they have to just be bored. In Nicaragua, the system is more humane and allows them to improvise. This strikes me as a wonderful improvement over the US way, though I realize some people will not like it.
Rebecca Brown
got my pensioado residency..
with out going thru intur..didnt know u had too..moved here from hondurus..with a used pickup i bought over there..sort of had a run around..trying to get it in..what i did..is just start talking real loud..and tell the clerk..if they cannt take care of the problem..i want to see the boss..if the security guard..isnt standing behind u..u are probably not loud enough..and i also bought another used truck here in nica..off of a private owner.about 3 yrs ago..i use it to drive up to waslala..never changed the papers over from the guy i bought it off of.. think most of u guys..try making this country to complicated..remember the rules were written by bigger crooks than we are..learn how to use them..dont think..like a gringo
That line should be in the movie...
"If the security guard isn't standing behind u, u are probably not loud enough". :)
thanks..
but it usally works..i know im the ugly american..i dont care..u go the bank..claro.{moviestar for me,is way better than claro..never had a problem with them..i use a dual chip phone}.some gov. offices..and a lot of other places..the more important something is..the quieter they talk..my spanish..isnt that great and i have to here everyword they are saying..so just raise ure voice..and someone will be there to help u..and as soon as they start sputtering..ask for the jefe..my nica wife is amazed at what i get done..but u have to do it nice..no threatning..or swearing..and with a smile on ure face
Key West, Can you...
Register a car in the name of an SA?
As a Pensionado, you will be Condiciones 02 on your cedula and cannot receive any income derived from any work/business activity here. At the time of registering the SA, you have to describe the business.
Migracion just busted a guy here doing that. He had an SA which owned a bar. He had been here two years doing border runs and they made him get a residency because: a) he was living off a Nica business and b) he had not left the country (other than a quick turnarounds) in 2 years.
They were quite strict and made the comment that "If you try and do another border run without making a start on your residency, we will not let you back into Nicaragua" When that time came, he had indeed made a start but they made him stay out for 72 hours.
"Can't receive any income
"Can't receive any income from work" Is this true? What I thought that I saw was that you can't receive any public monies, private monies were not mentioned. Don't wish to start an argument, just looking for clarification>
From the Immigration Act:
El extranjero admitido como residente permanente en la subcategoría de rentista, pensionado ó jubilado, no podrá ejercer actividades remuneradas por cuenta propia o en relación de dependencia.
Which I think says:
A foreigner admitted (to Nicaragua) as a permanent resident in the subcategory of Rentista (private investment income) or Pensioner or Retired may not engage in gainful activities on their own or as employees.
Paul Tiffer somewhat confirms this but puts a wrench in the works at the end of it:
A business person or foreign investor will obtain condition 1 residency – that means permanent for five years and with1 the right to work in Nicaragua. People with Condition 2 – permanent without right to work – can´t be a legal representative – Retirees obtain Condition 2, that means a retiree can run a Corporation in Nicaragua but can´t be appointed as the legal representative at DGI.
My question is, how does he pull any money out of the SA and pay taxes?
You may need some legal advice on what is private money.
Paul Tiffer's initial post
Paul Tiffer's initial post NL 2009/08/26 states that a pensioner can not work in Nicaragua with government money. Information of retirement law from ANID Nicaragua (Association of Nicaraguan Developers and Investors) States: Prohibitions Residentes Pensionados or Rentistas may not work in any activity in which they receive public moneys. The exceptions to this rule are: a) if it is their own business and they have real property registered in the Public Registry worth at least US$75,000, and the work has been approved by the Ministerio de Fomento, Industria y Comercio.; or b) they receive special authorization to work; or c) it is work within a public or private institution and is scientific or intellectual in nature.
Google translation of Spanish: Can not exercise self-paid activities as employees.
I'm not going to work tomorrow, so it's no big deal, but people have been asking me to build them some rustic furniture and I would like to get paid if I do produce something.
I realize that Mr. Tiffer is a well respected lawyer here but before coming to Nicaragua I Emailed him five questions, and it turned out that my experience in relation to every single question was different than he led me to believe. With this in mind, I would like a second and maybe a third opinion.
Different is normal
If you go way back in the NL posts you will see that I opened a bank account in BDF long before I had residency. There are lots of other posts by people saying they could not. This is but one example of how things seem to work in Nicaragua.
Many of us -- including myself -- want black and white answers. Well, Nicaragua is the land of the gray. Yes, there are some things that are downright illegal but there are lots of things that just change with the day of the week, who you talk to and how you talk to them.
Your translation above is pretty confusing. Things like "public moneys" suggest, to me, something very different than the law. The law is basically saying you cannot engage in activities as a person which are involved in the Nicaraguan economy. But that leaves involved in equally undefined. Let me offer an example of an activity that might be legal.
You going into the furniture making business. Someone with non-Nicaraguan income (Gringo on a pension, for example) wants you to make a table for him. You give him a list of materials to buy and tell him to send you $100 via PayPal or some other method that is not connected to the Nicaraguan economy. ... Is that legal? Probably. You can now ask what if you bought the materials? What if he paid you with a money he got out of an ATM from his US bank account. ... Probably and maybe will be the answer in most cases. And if you are small-time and don't step on any local's toes, it is unlikely to ever be an issue.
As for lawyers, I have had dealings with at least eight, Paul Tiffer being one of them. Most of those eight I would still deal with -- depending on what I needed done. One, for example, could best be defined as very creative. While a Nicaraguan lawyer is supposed to be representing the law, not you, he will creatively interpret the law to get you what you want. Sometimes, but not always, that is a good thing.
Paul is not that kind of lawyer. He is honest and tries to follow the law. At times I know he has consulted with judges to get a law decoded. While this sometimes means more up front work/time, it is extremely unlikely that he will lead you down a path which will later be questioned. Unfortunately, this does not exempt you, Paul or any other lawyer from "prodecural changes". That's a nice way of saying that some official in a government agency said X last week but today says not-X. I know of a case where this happened with Paul dealing with immigration. The big advantage of having a lawyer who regularly works with an agency on your side is going to be their recent experience with that agency. But, sometimes even they meet with a surprise.
Good call, second and third legal opinions are good.
And then ask Rebecca as well!! :)
Lawyers here are like para legals/court runners back home. They learn a system, refine it, maintain very good contacts and duck and dive, bob and weave their way through the system, often knowing more than the man behind the desk but of course not having the little stamp of approval. The entire system of administrative law is to involve as many people, processes, levels and stamps as possible and never to request the same documents or repeat the same steps in the same order for the next guy.
Often the fact you used a lawyer shows that you put some more bucks into the system and for that you will eventually get done what you need done. There was nothing on my application that I could see a lawyer being able to help with. Maybe I had a couple more trips to Managua than I needed but I would have missed out on two Supersized Big Mac meals.
Make your chairs as a hobby, start by making your own and always have a few bits on the go for yourself. You will find a way to get paid for the ones you do for others, its not a big deal. Perhaps one day you will have a young apprentice, he or she can get a RUC # and a Matricula and the problem is solved.
If you're going to do something that's the darker end....
....of the gray area Phil describes, don't post about it on line.
Rebecca Brown
That's good advice Rebecca,
That's good advice Rebecca, and everybody else. Thanks! Interestingly, I am presently reading Cory Doctorow's "Little Brother". I am in a dark gray area at the moment and hoping to emerge when the government starts up again after the holidays. Unfortunately, this thread will probably be inactive when my adventure is completed, and then, I hope it will be safe to post and warn others
Maybe a clarification
The legal representative at DGI means exactly that and no more. It has nothing to do with who actually makes business decisions or who can sign the checks. It just means who can sign the DGI tax paperwork.
Good Advice, Juanno
The SA will not be making any money in the near future. Maybe never, if Rebecca is right :)
I assume the SA can own vehicles, land, equipment. Navigating the rules will be a learning process, and I'll certainly share my experiences.
My interaction with Nicaraguan officials (other than the traffic police, and that experience has been no different than what I've seen in Mexico most of the rest of CA) has been uniformly positive.
I could also do an investor residency; I just need to talk to someone knowledgeable (which will happen this year).
I Don't Understand
why there is some implication put forward that people are doing things illegally ? Who is bringing items in illegally for resale ?
Carefully considering options, researching the pros and cons, and using the laws in place to one's advantage is not illegal.
The decision to apply for any type of residency is one that should be considered carefully. Pensionado is simple, and the duty free import of a vehicle and personal items is attractive, but that classification might not meet everyone's requirements. Many people I know only spend a few months at a time in the country . . are they tourists or residents ?
The "moving target" description is certainly apt. Nicaragua's attitude towards investment in general, and Usanos specifically, is evolving. The same shoe does not fit every foot.
items for resale
Bringing in items for resale is about as common as Mothers Milk. Well, not maybe for foreigners because we dont need the money or want to bother.
Tons of Nicas earn or supplement their income by bringing in things to sell--it is so much easier and lucrative than working. It affects all borders both land and air.
I just got a box of used stuff I shipped in L.A. Used houshold stuff comes in duty free, but the shipper asked if there were appliances inside. Apparently that is the hot item now--people shipping in electrodomesticos for resale. I noticed that the contract also said no more than 3 êlectrical`items could be shipped in the box. Shipment was delayed in Aduanas 1 month or more because of the backlog. I am told that they have an xray machine to scan the boxes. Mine had nothing suspicious and was not even opened. If it had more than 3 electrodomesticos it would and been opened, delayed even more, and taxed.
"Anything that is complex is not useful and anything that is useful is simple. This has been my whole life's motto."
Mikhail Kalashnikov, Russian inventor
Everyone's advice here from left to right is:
1. Get your residency first before buying (alternative advice is live here a year before making a commitment that you can't get out of with one phone call). Residency is simply up to five years (one for some alternative forms), not a commitment to stay for all of five years if you get a better offer elsewhere.
You didn't do that -- so figure out what will work from where you are now. Probably talking to a lawyer would be useful.
2. Don't bring in more than two cameras, computers, or other things that Aduana will suspect is a business of bringing stuff in for resale. Do people do this? Is the Pope Catholic? It's probably why Aduana no longer has the exemption on mailed packages with a value up to $500 or whatever that used to be since every family member who had a cedula would get That Package every six months, including the aunts and uncles who were senile and who drooled when they signed for the packages. Don't agree to bring things in for other people unless you are giving them as gifts. Don't get into shared container deals with absolute strangers.
I have a friend who used to smuggle bras to Honduras. When asked at Customs why she had 20 bras of various sizes in her suitcase would throw up her hands and say, "Because I'm a woo-man," but most people aren't her.
3. If you're in Nicaragua less than a full six months every year (landing day is counted as day one and departing day is also counted), you're a tourist. Can't work here, can't get a range of things done easily. Six months here/six in US, and retired or living on investments -- go for residency. The word is that Migracion is flexible if you have an issue with property and have to spend time in the US to fix a house, find a new tenant, get a place rented again.
At this point, Nicaraguans want retirees and people who have independent incomes to get Nicaraguan residency. I don't know of anyone who was turned down. Pensionados and rentiers spend money here and tend to do useful things like help people learn English and hire people to do things. They don't take jobs from Nicaraguans.
Nicaraguans also want people to invest in businesses that work. That one is more complicated and is the area where I'd want to be working with a lawyer who knows the field. The more gringo businesses actually work, the better and easier this one is likely to be; the more gringos end up on their asses begging money from other gringos or abandoning the business, which has happened, the more people who apply for this status will have to justify why they should get it.
For tourism/hospitality based businesses, there's Intur. Best word I've gotten is that membership is something like $350 US a year (maybe sliding scale, but that's what I heard from a Nicaraguan who runs a hotel here). My impression is that Intur puts most of its advertising dollars into promoting the coastal resorts, but they do a hotel register with a review (people from Intur show up and you know who they are and you comp them for the night and you get listed in the national list of hostels, as heard from a former hotel manager here about how that worked). They were also working on a video of small locally owned hotels in the North (I may be in it).
Your local alcaldia will also want something, and you'll be paying into INSS for employees. Most of the pure business details are covered in Phil's "Living like a Nica" book.
Rebecca Brown
INTUR is not a "social club" with membership dues.
Your post above is so typical of the incorrect and negative information you post about a business sector you are not a part of.
INTUR is the government tourist department and is a legal body with a 'Marco Jurídico'
Its has laws that have to be followed.
They can shut down your bar, club hotel or hospedaje.
This very good link, aimed at the US market, does way more than promote coastal resorts and is the sort of thing that makes sitting in hours of meetings worthwhile because they actually listen and do something to promote tourism.
http://visitnicaragua.us/
Check out the travel specials
http://visitnicaragua.us/travel-specials/ecotourism/
I cant wait for you to rip it apart....
Okay, I'm wrong and nobody can run a hotel without Intur
So, no playing by Intur's rule, can't run a overnight hospitality facility, not even a backpacker's lodge. What about a commune that charges nightly rates? I suspect that doesn't fly either. What about a poverty alleviation project that teaches sustainable agriculture? What about being a foundation that works to teach Nicaraguans how to do stuff by running a model farm (complete with weeds and not producing all that much from what I've heard) and Zip Stove manufacturing training facility? Can she do anything like those things without some charter and legal connections to some Nicarguan government agency? Can she run a spiritual healing center and charge day rates?
Me, should I want to do something like this and actually have the money to run it for a couple of years without making a living from it (which I don't), I'd run a ROI and figure that if the people paying me weren't paying me what I needed per year within some last chunk of my money, I needed to move on. And I've lived a far more harum scarum life than most of you. When someone sees me as a possible source of steady money or as a possible business partner means the person doing this is completely delusional. No business plan, no books, no market analysis, probably not really obeying the law, but the woman is having fun. But the nano second someone asks me to contribute to the party, I'm my father's daughter and my brother's sister -- no ROI figures, no market research, no business plans, no obeying the local laws, bye. Second time, it's "Didn't you feel that clout upside your head the last time. I wasn't flirting or just having a bad day."
By the way, I did take your advice, and made the formal proposal for the soc.motss.con to be in Matagalpa. Spending time there was also a factor. Some people are beginning to think visiting Nicaragua would be fun.
I did ask Matagalpa Tours to do the arranging for us. I am, after all, not a tourism professional like yourself.
Rebecca Brown
I don't claim to be a tourism professional....
But here is a thought Rebecca.
The people at Intur approved your application and migracion gave you a 5 year residency card. Yes you qualified, just, but the least I would think you could do in return is be more supportive of an industry who gave you that start here in Nicaragua.
Without any book sales, where else are you going to live such a safe, enjoyable, cheap and free existence for such a small qualifying pensionado amount as here?
Add in the ability to earn US $90,000 or more in offshore book money....that Nicaragua could care less about.
I'm not the one who has a problem with Intur in Jinotega
At this point, there's no another bid for the soc.motss con. What do you think I'm doing with that? Committing anti-tourism?
I have other reservations about tourism -- but Intur does seem to be encouraging Nicaraguan-owned tourism in the north (among other things), which I happen to think is a good thing.
I think, actually, that we both agree that tourism will be a part of Nicaraguan economic development, what I think personally about tourists in mobs not withstanding. The soc.moss folks are looking at extending their visits if Nicaragua wins the bid. I've suggested that the high end was the new Pellas place and the low end were surfer dude hostels for the Pacific beach. So, maybe, I'm really not the problem you need to imagine I am here.
However, I do believe that after eight years or less, in any field I've ever known much about, you are what you can offer other people today, not what you might be able to offer if they only gave you money to make this upcoming great thing really happen.
When someone is happy with their fantasies of Big Rock Candy Mountains to come, then I think there's something wrong, especially if they've collected a posse of thieves and con artists around them. who are predators quick to find non-reality checking prey.
Intur may have defined their target retirement market in a way you don't approve of, but I suspect they were quite realistic about their market.
Pellas's operation, the various hobby places that still play by the rules and pay the Intur tax (doesn't everyone complain about taxes?) and pay into INSS and pay their employees appropriately, the places that actually make a profit while complying with the law, and all us sub-$1K pensionados and rentistas -- we are all as Intur wants it. Have a beef with Intur letting in poor people who don't have more than $1000 a month? Take it up with Intur?
Rebecca Brown
Bla Bla
I never said that and have no hard feelings on the low end pensioners, I will be one myself in 4 years time.
So what is the issue at hand?
Must have mistaken you for one of the other cranky guys.
Rebecca Brown
Rebecca May Yet
show us all how it's done . .with that $90K book deal.
Until then, I'm a "plan your work and work your plan" kind of guy, and it became clear early on that the pensionado status may not meet my needs 100%. Pensionado with a a majority interest in a SA might, but that is yet to be determined.
I plan to share my experiences, as Rebecca generously did when she obtained her pensionado.
A lot of people have helped me, and have undoubtedly saved me a lot of grief. Phil's generous advice comes to mind.
And I hope to piggyback on the experiences and success of others who have gone before me, and give them due credit for their help.
I'm a realist
....most of the time. I want to continue learning Spanish, which is not particularly easy for me, but I'm at a point in my life where "not particularly easy for me" isn't the seemingly good excuse for not trying that it used to be.
My other plans are that when I die, if I have by then made friends in Jinotega who would want me to be buried here, I'll arrange to be buried here so they can think of me on The Day of the Dead. Otherwise, the body goes to Managua, gets cremated, and the surviving sibs and my niece gets shares.
If I had that sharing to do over again, I'd have done what Fred Lamb did (who knew about the flack I got), and would have kept good notes and written the thing up in one long post and asked Susan Ball to lock it against comments.
Rebecca Brown
I meant to say Tax Free
Add in the ability to earn US $90,000 or more Tax Free in offshore book money....that Nicaragua could care less about.
Its a nice talent if you can make it work, Nicaragua doesn't know or care and the USA gives her 90K+ in tax free bucks because she is a non resident.
So does it strike me she should embrace tourism and write about it?...yes of course, but far be it from me to tell her what to do. :)
One more catch
That income must come from a no-US business. So, if a publisher in Brazil coughs up the $90k, great, tax free everywhere. But, if it is a US entity, no go. See A42 for details.
I expect this law is at least a piece of the reason a lot of companies (like Haliburton) are now ex-US companies.
No the $90K ($97.6 K) income exclusion (330 day rule)
applies to *earned income* like wages from a US owned or foreign business/company. Also apples to your Self Employment income here (book deal) and wages from your SA but NOT for income from a sole proprietorship here. Losses from that sole proprietorship ARE deducted from your total income.
But if you work for a US company or are self employed (book deal) you will probably pay FICA on the $90K - Generally it is not excluded.
Book money and Early Retirement
If I earn over $14K before I turn 66 or 67 (my usual retirement date), I lose a year of SS benefit (a writer acquaintance went through this). After that age, no problem, though I believe I will owe self-employment tax as long as I hold a US passport.
If I work here for Nicaraguan money before my usual retirement age, I lose a month's benefits for every 40 hours of foreign work. Work done here but paid by a US publisher who reports the income to the IRS -- see $14K rule up to usual retirement age.
If I were planning to run a business here, I'd check with the IRS and with Social Security to see if what of this affected me. Strikes me that enforcing the foreign work rule would be non-trivial except that the US is requiring disclosure of foreign accounts and is making it difficult for foreign banks to not send in interest payment information to them (as US banks do). I play by the rules. When I'm 66 or 67, I'll see whether the foreign work rule would still apply. I think it doesn't.
I don't know how this would affect an incorporation here, and think I'm right in stating that the benefits are only lost for foreign work if you're under the usual retirement age.
If self-employment taxes never go away even after normal retirement age, royalties will always make taxes interesting (can I count home office expenses against royalties on books I wrote in a different country -- shrug, I'll find that out when time comes).
Anyone coming down here to collect SS and run a business needs to either check the IRS and SS websites or consult a tax attorney/appropriate US embassy staff, especially if they took early retirement.
15% of net money is more than some people living off investments and capital gains pay.
Rebecca Brown
Who would have thought that a post entitled:
"bringing your car to Nicaragua" could be so interesting!!
Different Strokes For
different folks.
And a lot of people give sincere advice about topics they know nothing about.
Don't drive at night. Why do all the CA long haul trucks drive at night? Plus, as an added bonus the traffic police are all soundly asleep in their little kiosks.
Don't drive to Nicaragua! But the poster who's done it six times says it's no big deal.
Don't rent a car, take the inexpensive buses. Sure, if you like stifling heat, dirt, sick people packed in next to you, and constantly worrying about your possessions.
First thing you should do after getting off the plane at MGA is apply for a pensionado residency. Maybe, maybe not . . . .
All Gringo males in Nicaragua are pedophiles, selling illegally imported merchandise, con artists, thieves, or some eclectic and cranky combination of the above. If one aspires to more than a shack in Jinotega then one is "stupid" and living in a fantasy world. You'd think that the country was overrun with dumb Gringo pedophiles if this were your only source of Nica information.
Still, a lot of very valuable information IS posted on the site, for which I am grateful.
Short version
One of the easier ways to live in Nicaragua is working at something in the US until you can retire or have enough investments for rentier status and then coming down. Another easy way is having enough investment capital that pays out sufficient funds to live on and having enough money to buy the physical structures/equipment necessary without going into debt.
One of the hard ways is presuming on the kindness of strangers.
Rebecca Brown
i would suggest to anyone
is to get your residency first before you do anything else. I can think of 3 reasons:
1) Your rights to work,etc., depend on your residency status. Do it right the first time, according to Nic. law, not according to how it works in country X or country Y.
2) Believe it or not, some things here do not go to plan and do not work out as fast as you would like. Going thru multiple processes at once, especially if one lives in the boonies (anywhere other than Managua) will suck your time and money away.
3) By the time a Newby spends 3 to 6 months getting their residency they might not want to live here and not having property and businesses will make it easier to leave.
Also, anything more complicated than getting a pensionado thru Intur should involve an Experienced lawyer and probably a competent translator from pretty much day one. Minor note: country lawyers probably know nothing about immigration laws except helping Nicaraguans to get fraudulent deeds to scam US immigration. Get a real lawyer in a real place (Yikes, back to Managua again!).
"Anything that is complex is not useful and anything that is useful is simple. This has been my whole life's motto."
Mikhail Kalashnikov, Russian inventor
Too complex for me
I visit 6 months (90+90) at a time, usually to sweat out winter in Leon, jodido. The break at 90 days is a hop to Mexico, or a pleasant little loop around CR.
I rent. Got an accumulation of made-in-Nica stuff for comfort; stereos at the border, TV from Panama (where all 'stuff' is cheap). There are now 7 of us, will soon be 8 - all is good. Suegra takes care of kids in school & the rental while their mom & I tour about, or park it somewhere.
I used to drive down when the permit was 90 days. Only twice after the Sandinistas changed the rule to 30 days. Taxis & public transport are convenient & cheap.
I don't see the percentage in owning, or becoming a 'legal resident'. (You'll always be a gringo.)
"Simplicity is the ultimate sophistication." - Leonardo Da Vinci, maker of the AK-1510
“Life is really simple, but we insist on making it complicated.” ― Confucius
Legal residency has some advantages
Difference between being "that gringa" and "our gringa." Plus it's what both the US Embassy and the Nicaraguans advise if you really live here full time. (Being an escritora cancels out being a gringa, or close to it; being a poor writer in the US is like being a part-time leper).
If you're splitting the year and aren't in more than six months of the year, you might as well not get residency. Don't need a Nicaraguan driver's license if you don't drive, either.
Rebecca Brown
rental car
US driver's license sufi But it helps if you really know your way around, e.g. all one-way streets in Leon - few marked. Also: have a crucifix on the rearview to pass thru Managua without getting 'bitten' by the poli-poli.
Have rented a few times, a week at a time, good deals, plenty of pick-up spots around (most top hotels), plus other channels offer car/van with driver.
(Does a part-time leper reattach fallen appendages when off-duty?)
Does CR Still
have that duty free day at the Panama border? Used to be last day of the month as I remember?
Of course, you still have to get your booty into Nicaragua . .. .and gas is much more expensive than it was.
CR has some REALLY NICE furniture for sale, there is a manufacturing center north of San Jose. Beautiful woods, excellent craftsmanship and finish.
Is there anything similar in Nicaragua?
I like traveling in CR, and have never had a traffic police problem there. I think that CR values their tourists more than Nicaragua does -and the results of that attitude show in any number of ways.
furniture
go to masaya or the pueblos blancos or a store that gets their stuff there.
The north is junkmeister heaven--uncomfortable, structurally unsound furniture made of substandard wood with substandard fasteners and finishes. the few exceptions, like Granadino in Esteli, have to be tracked down like you are a detective or something. A few quality makers make good granny chairs and single and double beds well, but for everything else, go to masaya/ pueblos blancos.
Much furniture is made ``custom`` here in small shops. Translate `custom`to mean `àmateurish`. Buying locally really helps the economy--because you have to buy it again in a couple years or less.
"Anything that is complex is not useful and anything that is useful is simple. This has been my whole life's motto."
Mikhail Kalashnikov, Russian inventor
custom made furniture
I've had very good luck with stuff made at two 'tallers' here. I brought in sketches, the dimension just right for our apartment, pick out some beautiful wood: guayacan, and then 'nursed' it through to completion. By that I mean I showed up at the shop, asked to see how far the maestro's men had gotten, paying bit by bit as matters progressed. Got a beautiful wardrobe, kitchen table, bunk beds & bookshelves.
It's critically important to be on their case, admiring their work, jaw-boning.
See what they've done before commissioning custom work
I've had equally good experiences here. Part of the pay-off for a craftsman is the happy customer, interactions, thinking about the design (clothes, shoes, furniture). My cabinet maker isn't Nicaragua, but his family is. Other stuff has been from Nicaraguan craftsmen/tailors. My tailor, who I suspect has health issues, got my pants to me a day before he said he would (I knew he'd been late with someone else and he knew I knew that person). Everyone else pretty much was on time, but this is Jinotega where the water makes Gringos weird and Nicaraguans like New Englanders.
Rebecca Brown
On time
That's a cultural neurosis that gringas & others import, esp. foreign business folk. It's merely a matter of when they want to get paid. Some, many here, live on the financial edge. A fool who pays all up front may never see the job done. In the States the scam is cost overruns on contractual work. Once you're on the hook, you're no longer in control.
I was six or so years late with a novel
...and maybe five years late with a term paper. I would be a hypocrite to be too fussy about things being on time for me.
With the kid I loan stuff to, I know where he works, and if he's still got something, we tend to run checks on whether I really need it back now or whether he can keep it for a while longer.
Boots -- paid half up front, checked on the work the morning they were supposed to be finished, admired the boot; picked the pair up and paid for them that afternoon. Current furniture project, no up front money, but he's done other things for me and knows I'm good for it.
I had a plumber in Philly I turned in to the Plumbing Permit people to put some pressure on him. The Inspector was rather amused. I'd been without a flush toilet for over three months at that point. I hadn't paid the whole amount, but it was obvious from other phone calls I overheard that the plumber overbooked himself all over the place for the up front money. As long as plumbers were scarce, it was a great strategy.
Rebecca Brown
paid no duty on TV
Maybe we forgot to declare it; maybe they forgot to inspect us. It was in the sticks near Bocas del Toro - a border crossing out of a Graham Green novel, very little actually moved. A shortcut to the Caribbean coast of CR south of Limon.
Into Nicaragua, no duty cause my sweet, little Nica wife is allowed to bring in stuff. Perhaps you could give a Nica a lift at the time, and work out a little arrangement, or somesuch.
Many Ticos go to Golfito for duty-free bargains - it's a neat spot.