If you are planning to move to Nicaragua or have an extended stay in Central America you may be asking “Can I buy a car in Nicaragua?”. While Expats can purchase a vehicle in Nicaragua, there are some legal considerations to registering it to drive.

Required Documents, Seguro and circulación (Insurance and registration) card

Nicaraguan law allows foreigners to purchase vehicles within the country, however, the vehicle must be registered by a local entity. This can be accomplished by either becoming a resident, opening (or purchasing) a corporation, or by entrusting a local person to register the vehicle in their name (riskiest option).

Becoming a resident in Nicaragua is not difficult but takes some time. You can establish residency in a few ways. The most popular way to establish residency is as an investor. Purchasing a home or business for $30k USD qualifies an expat for investor residency in Nicaragua. Additionally, a foreigner can establish residency as a retiree and less popularly under a renter’s category. Ingigante partners with BMR legal to provide residency application services. Please CONTACT US for more information on residency.

Opening or purchasing a corporation in Nicaragua is probably your safest option to purchasing a vehicle in Nicaragua. You can establish (or buy) a Sociedad Anonima (S.A.) which is similar to a c-corporation in the United States or less popularly a Sociedad Responsabilidad Limitada (S.R.L.), an LLC equivalent. There are several reporting requirements for each but our legal team can help you decide what is best for you. Contact us for more information.

Finally, you could opt to allow a trusted local person to register the vehicle for you. This holds the most risk and requires trusting in a citizen or resident with legal registration of your vehicle. The vehicle will only be registered to them however and title should remain in your name for protection of the asset. While this is not the safest method it is the easiest and probably the most common.