Investing in Nicaragua

Nicaragua has an established but relatively small investment system. The formal capital market includes public and private debt securities, shares, investment funds, repurchase agreements called reportos, invoice-based instruments and permitted foreign securities. Real investment can involve property, agriculture, tourism, forestry, energy, industry and services. Foreign direct investment, or FDI, means investing in or acquiring a business, establishing a company or taking a participation in a local project. Virtual assets form a separate category and require a different regulatory framework. An individual or company normally does not trade directly on the Bolsa de Valores de Nicaragua, known as the BVN. A licensed Puesto de Bolsa, or securities brokerage firm, opens the investment relationship, collects the customer profile and carries out the order. The profile normally covers identity, assets, source of income, purpose of funds, investment objective, time horizon, experience, risk tolerance, currency and intended share of assets. National and foreign individuals and legal entities can use the formal market when the relevant provider accepts them and the required checks are completed. Public offers may be made only by authorized participants. The current supervisory and market infrastructure includes the SIBOIF and its Intendencia de Valores, the BVN and CENIVAL, which provides securities custody and settlement functions. Fixed-income instruments include BCN Letras and TIN with terms ranging from 1 to 359 days and stated multiples of C$300,000 or US$10,000; payment is made at maturity. Other possibilities include BRN and MHCP securities, private bonds, commercial paper and other registered instruments. Shares and funds can support value growth or diversification. The Horizonte Fondo de Inversión Financiero de Crecimiento Dólares is one documented fund example. Foreign securities may be used for geographic diversification only when they meet the registration, permitted-origin-market and authorization requirements of SIBOIF and the BVN. No reliable local evidence establishes a broadly accessible ETF or index-fund equivalent, and there is no documented freely accessible online-broker option comparable to large international retail markets. Client assets must be kept separate from the provider's own assets. A non-custodial Puesto de Bolsa places client assets with an authorized third party. Segregation protects the custody structure, but it does not guarantee a return or compensate for market, credit, currency or liquidity losses. A primary-market investor may hold a security until maturity; the secondary market and reportos can provide another way to obtain liquidity, depending on actual buyers and market conditions. Currency diversification between córdobas and US dollars can reduce concentration in one currency but creates exchange-rate exposure. FDI requires registration with MIFIC's Dirección de Inversiones and entry in the RUIE. Strategic projects can also require a sector-specific investment agreement. A company may need formal steps with the Registro Público, DGI, Alcaldía, INSS and the responsible sector authority. Property and project investments require separate checks of title history, cadastral and registry records, municipal land status, possession or occupation issues, court matters and sector permits. Independent local legal due diligence is particularly relevant for land and real estate because registry and enforcement risks can materially affect ownership and exit options. Foreign investors generally receive the same investment rights under Law No. 1240. Subject to exchange rules and applicable taxes, the framework provides for access to available foreign currency, conversion and transfers of capital after liquidation or voluntary sale, as well as transfers of profits, dividends, interest and royalties. A dispute may begin with negotiation through MIFIC; after 30 working days, national legal remedies or international arbitration may be available under the applicable contract or treaty. Securities customers have rights to information, best execution, conflict-of-interest disclosure, confidentiality, complaint registration and separate asset management. Investors must provide accurate customer and source-of-funds information, keep orders, contracts and risk records, comply with national law and meet reporting duties attached to the investment. FDI projects can require quarterly performance reports to sector authorities and statistical information for the BCN, including financial statements, invested amounts, cross-border flows, debt, production, prices, wages and employment. Projects that affect the environment or resources must avoid and fully restore the relevant damage under national rules. Costs depend on the instrument and provider. BVN registration or prospectus updates cost US$700 per filing, while a private issue has a US$1,000 annual permanence charge; public offers have no permanent charge. For company fixed-income securities in the primary market, the investor does not pay a BVN commission and the issuer pays. For public BCN or MHCP primary securities, the Puesto de Bolsa commission is freely negotiated and the BVN receives 25% of that commission. Secondary-market bonds carry 0.25% for the buyer and 0.25% for the seller. Commercial paper and Letras carry at least 0.02% and at most 25% of the Puesto de Bolsa commission. Reportos carry 0.25% on each side. Share transactions carry 0.25% for the issuer in the primary market and 0.125% for both buyer and seller in the secondary market. Secondary-market foreign securities can carry a 10% Puesto de Bolsa commission, subject to a minimum of 0.0625% per year for registered public foreign securities. Account, custody and provider charges are contract-specific. Securities transactions receive tax privileges in some cases, while investment income remains subject to the applicable tax rules. Nicaragua's market carries market, interest-rate, credit, liquidity, currency, political and regulatory risks. Recent BCN data showed BRN placements of US$39.7 million in the first quarter of 2026 compared with US$15.4 million in the first quarter of 2025; first-quarter activity was concentrated especially in one-year BCN Letras. Such concentration can make a position difficult to sell at a desired price. Virtual assets add substantial volatility, fraud, custody, transfer and anti-money-laundering risks; a provider should have the required PSAV license or registration with the BCN. Unlicensed capital-raising offers should be avoided, and the current SIBOIF and BCN registers should be checked before funds are transferred.