MISA’s authorization is only the first step in setting up such a partnership. Additionally, in a bid to bolster non-oil income, the government implemented new taxes and fees in 2017 and early 2018, including significant visa fee increases, higher fines for traffic violations, new fees for certain billboard advertisements, and related measures.
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- An operator’s license issued upon an application containing any material false statement is void from the date of its issue and shall be surrendered, on demand, to the commissioner.
- No person shall obtain or attempt to obtain any license for another by misrepresentation or impersonation and any license obtained by misrepresentation or impersonation is void.
- An operator’s license issued to a person who has authorized inclusion on such donor registry shall have a donor symbol imprinted on such license or identity card.
- Any moneys paid for the license shall be forfeited to the state.
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On July 1, 2020, the SAG will increase the value-added tax from five percent to 15 percent. The VAT was originally introduced in January 2018, in addition to excise taxes implemented in June 2017 on cigarettes , carbonated drinks , and energy drinks . In addition to the negative list, older laws that remain in effect prohibit or otherwise restrict foreign investment in some economic subsectors not on the list, including some areas of healthcare. At the same time, MISA has demonstrated some flexibility in approving exceptions to the “negative list” exclusions. The government is eager to draw more foreign investment to Nicaragua. Its business facilitation efforts focus primarily on one-on-one engagement with potential investors, rather than a systematic whole-of-government approach.
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In the past three years, Nicaragua has not undergone any third-party investment policy reviews through multilateral organizations such as the Organization for Economic Co-operation and Development , World Trade Organization , or the United Nations Conference on Trade and Development . The government can limit foreign ownership for national security or public health reasons under the Foreign Investment Law. The government previously required that all investments in the petroleum sector include the state-owned enterprise Petronic as a partner. That requirement is now in flux following the government’s creation of four new state-owned energy companies to bypass U.S. sanctions against the petroleum distribution company DNP. Foreign and domestic private entities have the right to establish and own business enterprises and engage in all forms of remunerative activity. Any individual or entity may make investments of any kind.
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In general, Nicaraguan law provides equal treatment for domestic and foreign investment. There are a few exceptions imposed by specific laws, such as the Border Law (2010/749), which prohibits foreigners from owning land in certain border areas.
Personal connections and affiliation with industry associations and chambers of commerce are critical for foreigners investing in Nicaragua. Prior to the crisis, the Superior Council of Private Enterprise had functioned as the main private sector interlocutor with the government through a series of roundtable and regular meetings. These roundtables have ceased since the onset of Nicaragua’s crisis in April 2018 as has collaboration between the government, private sector, and unions. Though municipal and ministerial authorities may enact decisions relevant to foreign businesses, all actions are subject to de facto approval by the Presidency.
The government has a variety of initiatives to remove constraints on trade and improve the investment climate. In recent years, Sierra Leone has constructed major roads leading to district headquarter towns and rehabilitated a network of trunk and feeder roads, linking agricultural suppliers with urban markets in mainly district headquarter towns. The government has also prioritized improvements to the country’s trade facilitation infrastructure, including simplifying the customs clearance procedures at ports and land borders, and extending the major seaport to accommodate more vessels. Joint ventures almost always take the form of limited liability partnerships in Saudi Arabia, to which there are some disadvantages. Foreign partners in service and contracting ventures organized as limited liability partnerships must pay, in cash or in kind, 100 percent of their contribution to authorized capital.