Q: What is a 306 project?

A 306 project is a planned development that has leveraged Nicaragua’s tax incentive tourism law 306. So far the only real estate developments that have been able to leverage this tax incentive law have been condo-hotels, since they are directly geared towards the tourism industry. Tax benefits are extended to the developer, and certain tax benefits are extended to you as an owner of a property within the project. As an owner of a condo-hotel unit, your personal use is restricted for the first 10 years of ownership.

Purchasing a property in a 306 project may or may not be your best option, depending on what you plan to use your Nicaragua property for. If your property will most likely produce rental income for you, then a 306 project property may be a good option; however, there are many other factors which need to be considered as well. You can read Nicaragua’s tax incentive Law 306 in English here.