Solid Legal Framework

The legal framework for investment in Nicaragua possesses a unique harmony. On one hand, Nicaragua has the Civil and Commercial Codes, pillars of the country’s investment legislation, established in the early nineteenth century.

On the other, these pillars are complemented by special regulations of recognized vanguard, enacted over the last ten years. These regulate specific aspects of the country’s investment climate such as Contracts, Loans, Investment Incentives and Exports, Stock Market, Banking, Real Estate, etc.

Guarantees for investment and business development have the highest rank, since they are contained in the Country’s Political Constitution.

In Nicaragua the right to private property is protected by our Constitution in its Article 5, under "Principles of the Nicaraguan Nation." Additionally, the Country's Political Constitution establishes the legal guarantees for foreigners to hold the same rights as Nicaraguans, and also to acquire and own private property.

The Foreign Investment Promotion Law (344) offers investors fundamental guarantees such as:

• Full currency convertibility
• Freedom to expatriate all capital and profits
• Full international ownership
• No discriminatory treatment for foreign investors
• Full protection of intellectual property rights, patents, and brands

In addition to the Foreign Investment Promotion Law, Nicaragua has signed up to 20 bilateral agreements for reciprocal protection of investments, with several countries in North, Central and South America, as well as Europe and Asia.

On alternative dispute resolution, the country has subscribed several treaties for alternative dispute resolution, among these:

• International Center for Settlement of Investment Disputes (ICSID)
• Multilateral Investment Guarantee Agency (MIGA)
• Overseas Private Investment Corporation (OPIC)
• United Nations Commission on International Trade Law (UNCITRAL / New York Convention of 1958)
• Inter-American Convention of Commercial Arbitrage of Panama.

Additionally, the Mediation and Arbitration Law (540) governs two alternate methods to the judicial process to expeditiously solve any dispute resulting from contractual relations between private parties.