Nicaragua has a population of more than 6 million people, with strong industries including services, imports and exports. There are several types of company formations allowed in Nicaragua, and the corporate tax rates vary based on income ranges.

Labor and Payroll considerations in Nicaragua:

  • The standard work week is 48 hours
  • Payroll tax is progressive, and can increase up to 30%
  • Minimum wage varies by employment sector. Manufacturing has a minimum wage of 7,500 Nicaraguan Córdoba per month (about $219 USD)
  • Income tax and social security are withheld from employee pay
  • Employers must contribute to social security
  • Foreign workers need a work permit to begin work
  • Companies must sponsor foreign workers, and prove that a local could not fill the vacancy
  • Work permits for foreign workers are bound to the employer and cannot be used for other employers

To get started in Nicaragua, or to simplify current operations, talk to our team. We have created one platform to manage your payroll across all countries and currencies. Our payroll technology provides customized reporting each month so you can see payroll in real-time, and our global consultants can help set up business entities and ensure employment compliance. To learn more or get started, click here