Nicaragua Approves New Regulations On Foreign Investment
Alejandra Cascante, Associate, and Marbell Portobanco, Paralegal, both from Arias Nicaragua, share the following news about the Regulations of the new Foreign Investment Law in Nicaragua.
On June 4, 2025, Decree A.N. No. 8902 was published in La Gaceta, Official Gazette No. 99, containing the Regulations of Law No. 1240, the "Foreign Investment Law" (hereinafter, the "Regulations"). These regulations aim to establish the necessary provisions for the effective implementation of Law No. 1240, with a focus on centralization, simplification, and legal certainty in the processes of registration and formalization of foreign investment in Nicaragua.
The Regulations govern the structure and functioning of the National Foreign Investment Commission (hereinafter, "CNIE"), established under Law No. 1240. They provide that the CNIE shall meet with the participation of three members and make decisions by simple majority. The regulations also define the roles of the Coordinator and the Technical Secretariat, who are responsible for convening sessions, proposing the agenda, and safeguarding the meeting minutes.
One of the key pillars of the Regulations is the procedure for registering foreign investment with the Investment Directorate of the Ministry of Development, Industry and Commerce (hereinafter, "MIFIC"). To do this, investors must submit an official form, accompanied by legal and financial documentation in Spanish, including the investment plan, the investor's identification, and, where applicable, the deed of incorporation.
Once all the requirements have been verified and met, a Certificate of Unique Registration of Foreign Investment (RUIE) will be issued. This certificate includes a unique registration number, the investor's name or corporate name, the economic activity, a general description of the investment, its origin, and a code that integrates the registration data.
The Regulations establish the Technical Committee for the Evaluation and Monitoring of Strategic Investments (hereinafter, "CTESIE"), an inter-institutional body responsible for reviewing registration applications that may qualify as strategic investments. The CTESIE will evaluate each case based on criteria such as the amount of investment, job creation, and alignment with national strategic guidelines. The recommendations issued by this Committee will be submitted to CNIE for approval.
In matters of compliance and oversight, MIFIC will be responsible for monitoring the procedures for the effective execution of strategic investments. The Regulations also require foreign investors to submit quarterly reports, which will be reviewed by the sectoral governing bodies and submitted to MIFIC. In addition, investors must notify any modifications to their shareholding structure. Failure to register or to comply with legal provisions may lead to the cancellation of the Single Registry of Foreign Investment (RUIE), which would disqualify the investor from developing economic activities in the country.
The Regulations also include specific provisions for foreign investments in the financial sector, which will be subject to the Constitution, applicable laws and the supervision of the Superintendency of Banks, the Central Bank of Nicaragua and the National Microfinance Commission.
In addition, a transitional regime is included for investments already operating in the country, which must be regularized through a special procedure before the MIFIC.
If you have any questions regarding this matter, please do not hesitate to contact us.
The information provided by ARIAS® is presented for informational purposes only. This information is not legal advice and is not intended to create, and does not constitute, an attorney-client relationship. Readers should not act upon this information without seeking advice from professional advisers.
On June 4, 2025, Decree A.N. No. 8902 was published in La Gaceta, Official Gazette No. 99, containing the Regulations of Law No. 1240, the "Foreign Investment Law" (hereinafter, the "Regulations"). These regulations aim to establish the necessary provisions for the effective implementation of Law No. 1240, with a focus on centralization, simplification, and legal certainty in the processes of registration and formalization of foreign investment in Nicaragua.
The Regulations govern the structure and functioning of the National Foreign Investment Commission (hereinafter, "CNIE"), established under Law No. 1240. They provide that the CNIE shall meet with the participation of three members and make decisions by simple majority. The regulations also define the roles of the Coordinator and the Technical Secretariat, who are responsible for convening sessions, proposing the agenda, and safeguarding the meeting minutes.
One of the key pillars of the Regulations is the procedure for registering foreign investment with the Investment Directorate of the Ministry of Development, Industry and Commerce (hereinafter, "MIFIC"). To do this, investors must submit an official form, accompanied by legal and financial documentation in Spanish, including the investment plan, the investor's identification, and, where applicable, the deed of incorporation.
Once all the requirements have been verified and met, a Certificate of Unique Registration of Foreign Investment (RUIE) will be issued. This certificate includes a unique registration number, the investor's name or corporate name, the economic activity, a general description of the investment, its origin, and a code that integrates the registration data.
The Regulations establish the Technical Committee for the Evaluation and Monitoring of Strategic Investments (hereinafter, "CTESIE"), an inter-institutional body responsible for reviewing registration applications that may qualify as strategic investments. The CTESIE will evaluate each case based on criteria such as the amount of investment, job creation, and alignment with national strategic guidelines. The recommendations issued by this Committee will be submitted to CNIE for approval.
In matters of compliance and oversight, MIFIC will be responsible for monitoring the procedures for the effective execution of strategic investments. The Regulations also require foreign investors to submit quarterly reports, which will be reviewed by the sectoral governing bodies and submitted to MIFIC. In addition, investors must notify any modifications to their shareholding structure. Failure to register or to comply with legal provisions may lead to the cancellation of the Single Registry of Foreign Investment (RUIE), which would disqualify the investor from developing economic activities in the country.
The Regulations also include specific provisions for foreign investments in the financial sector, which will be subject to the Constitution, applicable laws and the supervision of the Superintendency of Banks, the Central Bank of Nicaragua and the National Microfinance Commission.
In addition, a transitional regime is included for investments already operating in the country, which must be regularized through a special procedure before the MIFIC.
If you have any questions regarding this matter, please do not hesitate to contact us.
The information provided by ARIAS® is presented for informational purposes only. This information is not legal advice and is not intended to create, and does not constitute, an attorney-client relationship. Readers should not act upon this information without seeking advice from professional advisers.