Nicaraguan Bank Account

There might be many variables, and you might get any number of answers, many contradictory (which doesnt mean anyone is lying, only that there are a lot of variables). I opened a Banco Uno account in Nicaragua based on only my passport and my bank book & last statement from Banco Atlantida (oldest bank in Honduras). Perhaps they were impressed by the L33,000 in my Honduran account (sounds great, until you convert and realize it is a whopping $1700). Anyway, this was early 2005, and I think I opened with C20,000, which I think i was told was the minimum(?). I know of two people who have since had more or better data and funds than me, who did not get this done trying the same thing. If you are a U.S. citizen, I would not consider Nicaragua a tax shelter destination. There might be many reasons for having a Nicaraguan bank account, but if anyone recommeded it or a business there as a road to a tax shelter, I might question any other advice they offered. If all you really want is a place to put $ outside the U.S. territory, you could do that via a simple Euro/$ account in any offshore bank, even those administered by U.S.-based institutions. Putting money outside the U.S., in itself, doesnt usually get people what they sometimes assume it gets them (it is just as easy to not pay obligated taxes on money in a North Dakotan credit union as it is on money in a bank in Leon). If you want more than this, there are excellent Dutch banks in Panama, and the Carribean.

I have a dollar checking account with BancoUno in Managua. I've had it for a number of years. Back when I opened it, I think a passport was all I needed, although I also gave them a copy of my cédula de residencia just to make them happier.

However, due to all the publicity about money laundering, etc., they have tightened the reins considerably. Now, they ask a ton of invasive questions about your life, employment, source of income and monthly deposit profiles, etc. They all ask for two letters of reference from someone who has known you for a year in Nicaragua. If something deviates from that profile, they will freeze your account until you come in to explain things to their satisfaction.

The good thing is that BancoUno has a link with Bank of America in Miami, and the wire transfers from US to your account with BancoUno in Managua are pretty swift. For anything $10k or less, the fee is $19.50, and $29.50 for amounts above $10k. That may seem a lot, but if you compare that to the fees that the MultiCambio people get (4% per transaction), or Western Union fees, any deposit over U$500 will be less than that.

If you happen to be traveling to Europe, BancoUno will sell you Euros, and strangely (we just made a recent trip to Europe), their exchange rate was as good or better than what I could get at a bank over there.

Another thing about BancoUno that is good is that their online access is free (at least for my dollar checking account). Also, they have branches all over Central America.

They finally issued me a BancoUno (Visa) credit card after a year of hassling me about needing a co-signer since my source of income was from the US and not from a Nicaraguan employer. However, recently, they've wanted to get big time into the credit card game, so they're relaxed their standards, or else decided, after watching my account activity for a number of years, they could trust me with a C$1,000 limit ... whooppeee, a thosand córdoba spending spree! It has it's uses though, for the supermercado or gas station if I don't want to carry cash around all the time. However, the downside is that they assess an adjustment of your monthly activity for the devaluation of the córdoba against the dollar each statement. If you pay off the card in full, there's no interest, and this assesment is very small.

I read Bobby's and George's comments. I have different experiences as does a friend of mine. It seems the answer you get varies between banks, branches, personnel and phase of the moon.

I suggest you arm yourself with some reference letters (preferably in Spanish), some friends names and addresses and your best Spanish and head out. See what happens.

As for tax implications, if you are a U.S. citizen, any income is taxed by the IRS no matter where it comes from with the exception of the foreign salary rule (with all its hoops). Bank interest is taxed in Nicaragua (I forget the percentage but it is no biggie). There are also taxes on business profits here. But, foreign income that doesn't affect anything here is not taxed. See an accountant for an explanation of this last sentence.

BDF will let you open an account with:

Valid Passport (any country) Two letters of rec from Nicaraguans with a legal business (they will have to provide their license #'s. $100 initial deposit.

Pura Nica, Bobby

my own experience with Banpro. they will not let you open an account unless you have some kind of residency papers (resident, retire etc).

at least in puerto cabezas.

good luck