Working in Nicaragua as an Expat is possible but will not be as easy or viewed as a moot point by the local community in most places in Nicaragua. People who have high level of expertise in a specific area will be welcomed by the community but those who are looking for a low level skilled jobs will not be looked upon well by the local community. Why is this? Because, the low level skill workers will be considered fierce competition for the local work force. Either way, as a foreigner looking for a job in Nicaragua, you will have to pursue 1 of the following avenues.
- Obtain your residency with a permit to work – as a professional service provider with a work permit, all Corporate entities who hire you on indefinite contract, like a ‘normal long term employee’, will deduct the normal % that is the employees responsibility toward the National Social Insurance and other income taxes. The total amount to be deducted is calculated based on projections for a full year of work. This will position each employee in a tax bracket which dictates what percent of their salary is to be deducted.
- Obtain your residency with a permit to work – as a professional service provider with a work permit, all Corporate entities who hire you on definite contracts (specific project with a finite date) will deduct 10% of your pay and provide you with a “Constancia de Retention IR”. This 10% deduction is the same for all professional service providers who have work permits whether local or foreign.
- Not obtain residency and work with out a permit on definite contracts only. With out a work permit, foreigner will not be able to get hired formally by anyone – only internship students are able to have extended contract and university paperwork must be provided. In this case all corporate entities who hire you will have to deduct 20% of your pay as a tax. A slip called a “Constacia de Retention IR” will be issued with the details of your work contract.
Should you have more detailed questions about working in Nicaragua as a foreigner, we recommend you speak with a well versed Lawyer or reach out to the Ministerio del Trabajo.
Foreigners who move to Nicaragua are to be a creators of a source of jobs for locals, not create more competition for jobs locally. So if you are an expat who is thinking of moving here and still need a job to subsist, we highly recommend you begin with finding a online job that provides you little to no Travel restrictions.
Money earned Abroad does not get taxed in Nicaragua. Meaning if you have an online job based in another country, Nicaragua will not tax your for your income.
There are many people here living off of online jobs like Teaching English, transcribing or translating, online assistants editors, video or highly specialized techy service providers. All who move here will likely need to understand that they are moving to a developing country. This means there is limited access to “Best Buy” for all your incredibly detailed electronics gadgets. In essence, bring an extra charger and monitor connection with you. You will thank us later!
If you are thinking of starting a business, we recommend you speak to a well versed lawyer who can help you with setting up the your legal paper work (TAX ID = RUC) and discuss the legal entity you’d like to work through, whether it under your name (as a Quota Fija Tax payer) or a corporate entity (paying impuestos corporativos), either way you will have a monthly payment obligation to the local DGI office.
Labor Law – as a potential future employer, you will need to understand a few things. There is no such thing as a part time job in Nicaragua. There are only two kinds of labor contracts, definite or indefinite. For more info on Labor Law please make sure to speak with a well versed lawyer and also consult with the the consultants at at the Ministerio de los Trabajadores. It is important you understand that this country has many laws to protect an employee and you want to avoid long term issues that me arise from long term work relationships.
Work From Abroad – work from abroad sounds easy, and it can be for those who have experience but for one who is learning or trying to work from abroad, it may seem like a whole new world, because it is! Many people have already figured it all out so click here for more info that you could find very helpful.
Techy Advice – oh the wonder of living in a developing country. It has its advantages for sure but it also comes with a couple of challenges. Power outages, brown outs and battery back up systems will soon become part of your knowledge base. For more info on how to prepare and hable these kinds of unknowns