New Special Economic Zones Act (SEZ) in Nicaragua

EY Law - On 31 October 2025, Law No. 1264 was published in La Gaceta (Official Gazette) No. 203, creating the regime of Special Economic Zones of the Belt and Road (SEZ).

The main objective of this law is to regulate the creation, operation, and administration of these zones to promote economic development, job creation, and international trade.

The Law establishes a special regime of tax, customs, and administrative benefits for authorised companies operating in the SEZs, effective as of its publication in La Gaceta, with regulations pending issuance.

The main tax benefits provided for in the law are:

• 100% exemption from income tax on economic activity for 10 years.
• 100% exemption from tax applicable to dividends for 10 years.
• Exemption from customs duties associated with the importation of goods and services.
• Exemption from VAT on local purchases.
• Total exemption from municipal taxes.