What's the cost of living in Nicaragua?
Charles Evan - Panama Chuck's Everything Store
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Posted January 17, 2014
Mike Cobb - ECI Development
The cost of living in Nicaragua is about 1/3 that of the US. Our family of four, with 2 daughters in private school, ballet class 3 times a week, gymnastics, Girl Scouts of Nicaragua, eating out whenever we want, going to the movies, etc., spends about US $3,500 per month, including our cost of housing.
The cost of living in Nicaragua is about 1/3 that of the US. Our family of four, with 2 daughters in private school, ballet class 3 times a week, gymnastics, Girl Scouts of Nicaragua, eating out whenever we want, going to the movies, etc., spends about US $3,500 per month, including our cost of housing.
Posted January 19, 2014
Russell Newman - RusSELL Realty
There's an interesting blog to follow called 'In Nica Now' where a couple from Calgary moved to Nicaragua and documented all their expenses for one month. They found that they were living quite comfortably and spending only $1,400 / month and that included their rent of $500. Nicaragua is the most economical country for living expenses in the Americas. Great reason to retire there and that is one of the reasons I have chosen Nicaragua for my future.
There's an interesting blog to follow called 'In Nica Now' where a couple from Calgary moved to Nicaragua and documented all their expenses for one month. They found that they were living quite comfortably and spending only $1,400 / month and that included their rent of $500. Nicaragua is the most economical country for living expenses in the Americas. Great reason to retire there and that is one of the reasons I have chosen Nicaragua for my future.
Posted April 5, 2014
Darrell Bushnell
The major difficulty in determining the cost of living somewhere is comparing apples to apples. We will try to present some costs here but as always, we strongly recommend you live in your new country or location for at least six to 12 months before buying any major property. What is the cost of living of the United States or Europe? Well, that depends on where you live, your idea of a required standard of living, how much you travel, how big your house is, how much you eat out and...
The major difficulty in determining the cost of living somewhere is comparing apples to apples. We will try to present some costs here but as always, we strongly recommend you live in your new country or location for at least six to 12 months before buying any major property. What is the cost of living of the United States or Europe? Well, that depends on where you live, your idea of a required standard of living, how much you travel, how big your house is, how much you eat out and how much you embrace your new culture.
Having said all that, your cost of living in Nicaragua is substantially cheaper than living in the states or Europe. One of the reasons you may be moving to Nicaragua is to reduce your costs yet improve your lifestyle. Review your needs especially after renting here for a while. You will find that there are some things you no longer need and there are some things you absolutely will not live without regardless of what your neighbors think. We’ll try to present accurate pros and cons of various choices you will encounter. Finally, remember that these are our experiences and opinions. Also, remember that there are three prices starting at the highest: price for tourists, price for expatriates and the price for locals. Except at major stores, you can always barter especially when you buy more than one.
Location, location, location
Like any country, where you live will greatly affect your costs assuming everything else is equal. Our experience has been that costs are highest where the greatest number of expatriates live, for obvious reasons. More accurately, the greater percentage of expatriates to the local population will raise your costs. One way of comparing the cost of living is to compare the cost of housing in those locations. If the same house is 20% higher in one location then the cost of living will probably be higher there also.
Starting with the highest cost of living, the list goes like this:
Some would argue with the above list but San Juan del Sur is a good two hours from any sizable stores and that assumes you live in town. Many of the developments there are further away on bad roads.
Location within location is also important. Granada is the number one tourist location in Nicaragua and has a substantial number of expatriates. Within any city, the closer to the central park you are, the higher the cost of housing for purchase or rent. The central park exists in almost every town of substance here and is the heart of the city. Natives speak of pride in living close to the park. Living a mile outside Granada will substantially reduce your cost of housing yet accord you the conveniences of living near a major city though your cost of living will be about the same as those living in Granada.
You have many choices where to live. Are you the type to live by yourself on a farm or do you want the security of a development? Do you want to live within walking distance of good restaurants? How do you want to live? People forget that Nicaragua has not only the vast beaches and the colonial cities but also cool mountains and majestic valleys. Nicaragua has everything.
It is worthwhile to mention that many people moving to Nicaragua want to immerse themselves in the new culture and not be near many other gringos. This sounds good at first but often, after six or more months, you may want to meet and converse with people of like cultural background. Another reason to live in your chosen location for six to 12 months before buying.
For people buying a winter home or living here part-time, your selection criteria is completely different and the effect of the cost of living is much less since you are probably still earning a substantially higher income in the states or Europe.
Typical Costs
The cost of food and housing will be some of your highest costs and they will depend greatly on how often you eat out but there are many other costs. We’ll do a general overview here then cover each major topic in more detail.
We estimate our average total monthly cost is around $1,500 but that includes everything except traveling outside the country. We have a large, beautiful colonial home with a pool, employ a maid, a fairly new SUV and a motorcycle. Taxes are much lower here but they still exist and they probably will go up someday though they have dropped about 10% per year so far. You can find articles about people living on $500 in other countries but we live well and keep very active in the community. Eat local fruit, read books all day and never get sick if you want to live cheap.
Updated May 2013
The below monthly costs are typical for a typical home for a expatriate in Granada which tends to be a palace compared to the homes of the locals.
Homes
More detail is under the section of building vs renting but some quick tips are here. We can’t stress enough the importance of living in your chosen location for at six to 12 months.
Electricity is expensive here compared to the states and for Nicaragua, it is very high. But most people do not use much electricity. Assuming you do not leave all of your lights and ceiling fans on continuously, the highest cost items are your refrigerator, your pool pump and the number one cost, air conditioning. We never use air conditioning and most people do not since the luxury can cost over $100 per room per month.
The secret is to ensure you rent, buy or construct a home with good air flow. Roof vents and other means of letting rising hot air to escape are rare here though my next house will have them. There are many homes here that are beautiful and well-built but the bedrooms only have windows on one side meaning they need air conditioning to cool off.
Another common means of reducing your rent or supplementing your home cost is to have extra bedrooms to rent out. At this time, renters are more often looking for rental rooms instead of houses. The cost to the renter is lower and some people feel more comfortable being in a house with other people. Many of our friends do this successfully and it is a great way to meet interesting people. And they are like relatives, they usually do not stay that long.
Rents in Granada, Managua and San Juan del Sur are not substantially less than in Europe or the states unless you come from Los Angeles, New York City or Chicago. Still, a $1,000 a month will get you a substantial home with the comforts you would want. Check the ads on the Internet offered by most realtors and property management companies.
Maintenance
Once you buy or build a house here, the maintenance costs are much lower for several reasons. There is no carpeting, tile lasts forever, water damage is almost impossible, the walls are usually concrete instead of sheetrock, building materials are cheaper but mostly because labor is much cheaper.
Before our drainage problems were solved, our bedroom was flooded to the depth of four inches several times but there was no damage to the house. We painted every square inch of our house two years ago and the labor cost was under $200.
Cars, Transportation
Big decision you will have to make. Having a car, paying for gas and maintenance is a major expense if you are on a fixed expense. We have a large garage but the majority of homes here have no garages so you have the monthly storage expense ($20-25) plus the worry of your vehicle being in someone else’s possession.
We use our SUV rarely which means less than 2000 miles per year but we like the convenience of traveling when we wish. We also have friends that just hire a driver when they need it or of course, you can always rent a car. Much cheaper than owning a vehicle.
A third option is that some people here have a vehicle then hire a driver or a caretaker that also drives. This person then can also watch the vehicle while you running errands or whatever.
Entertainment
They are pirated but we can get first-run movies on DVD here for less than $1. We watched the new X-Men movie a month before it was released in the USA. You may feel a little guilty about using pirated goods initially but then you remember Tom Cruise getting $20 million for six months work and you realize that is even more obscene. Ladies, he is not very tall, get over it.
In Granada, we have a old movie theatre that shows first-run movies for around a buck but most people go to Managua that has many movie theatres of the same quality as the USA but for $2.50. Like the states, the popcorn and the drinks cost as much as the movie tickets but here you can also get a beer.
Living in another culture is a form of entertainment. Relish it and enjoy it.
Income Taxes
The USA requires you to file your taxes each year even if you live here. I believe only the USA and North Korea taxes foreign income on their citizens. You must report any income, any capital gains and notify the IRS of any foreign bank accounts. The fines are substantial for not doing so and you know that the USA is even going after Swiss and Panama offshore accounts. If you renounce your USA citizenship and they determine it is to avoid taxes there are very substantial fines up to 50% of your assets.
Do not listen to anyone that tells you otherwise or that you can take a huge deduction against your foreign or domestic income. There are stipulations for enjoying that deduction, Nicaragua does have a reciprocal agreement with the USA so Nicaragua will not tax you for any income taxed by the USA.
The Nicaragua government knows most citizens and certainly, expatriates will not report interest income so if you have a bank savings account here, the bank usually automatically gives 10% of your interest income to the government.
Talk to a tax expert familiar with foreign income or expatriates living abroad. There aren’t that many with that knowledge. I used the International Living tax bible which they sell and found it had a wealth of information I used to help file my taxes.
Cost of Going Home
If you are the type of person needing to return to the states every few months then you should consider that cost and budget for it. As of this writing, the major carriers are cutting back on the number of flights and air fares are increasing especially due to taxes and security fees. I recently found round trip tickets for $100 from here to Charlotte, NC but the taxes and fees added another $400.
Still, the proximity of Nicaragua to the states is a major plus. Nicaragua is much closer to Miami than Los Angeles. Flight time – 2 ½ hours.
Taxes In General
It would be rare for you to have to file taxes in Nicaragua unless you plan to start a business or work for a salary. Nicaragua does not expect people to pay their taxes so most of their taxes are immediately collected. For example, if you sell a property, there is a property transfer tax which is paid at the closing. If you have a savings account, the bank usually gives 10% of your interest to the government.
If you hire a regular worker like a maid, gardener or caretaker then you will be paying fees to the government for the employee’s social security and medical. More details on this in the section on domestic help.
Sales tax (IVA) is substantial at 15% but it is usually already included in the price of the item and many times, you do not pay it because the vendor is not reporting his income to the government. Most restaurants had included the IVA in their menu prices but in the last two years some restaurants started adding the IVA of 15% at the presentation of the bill which substantially increases the price of eating there. Be sure to check before ordering since 15% sales tax plus 10% adds substantially to your bill.
Property taxes are an art in Nicaragua. Do not argue over your taxes because you will lose. The alcadia (city or state offices) has the authority to tax you whatever they wish. Officially I believe it is .8 to 1% of the catastral value of your home. The catastral value can be anything they decide though almost always much less than the value paid. For example, we paid $189,000 for our house originally and it has a value of around $250,000 but the catastral amount is around $30,000. It is not unusual for a buyer and seller to agree on the value the sales contract states regardless of the purchase price. After all, it reduces the profit the buyer will show. Still, the property appraiser can agree or change the catastral amount to anything he or she believes.
Spanish Classes
If you are not able to hold a basic conversation in Spanish then you should consider Spanish lessons. You did move here to learn another culture and language is necessary to learn this culture even if only for basic conversation. Unfortunately, Nicaragua has one of the lowest percentages of people in the Latin world knowing any English. And when you leave the major cities there will be very few people knowing any English.
Spanish language lessons are one of the most expensive services you will pay for other than professionals like doctors, lawyers and architects. Typical costs are $5 to $7 an hour and many of the instructors expect more if there are two or more students at a time. You can get package deals if you sign up for many hours per week or for many weeks. It took a long time to find a Spanish instructor that would charge only $5 an hour to work with my wife and I and to come to our house twice a week.
You may not think $5 an hour is substantial but very few of these instructors are properly trained language instructors and in a country where teachers make $200 a month and policeman even less, it is very high and everyone offers it.
Take the time to find a good instructor that speaks clearly and understands the rules of grammar. Personally, I think the instructor should also be able to speak some English or the learning process will take longer. The best method is total immersion where you live with a family in their home. We learned more in two weeks of immersion than in six months of four hours per week.
Food
The food is excellent here but the restaurants owned by the expatriates can be relatively expensive depending on your budget. A $5 cheeseburger may sound reasonable in the states but that is a lot of money here. Every major town has a market and the costs of the various foods there are very low but it takes time to go to the market every day.
Ladies come everyday to our door selling fruits and vegetables. Their prices tend to be a little higher than the market but then you have the convenience. A young man brings us fresh seafood and an older gentleman brings us fresh bread. We have fast food outlets in the larger cities such as Subway, McDonalds, Burger King and Pizza Hut but the prices are about the same as in the states. We have three Chinese restaurants in Granada though only one is similar to what you would expect from a Chinese restaurant.
Living in a tourist town like Granada or San Juan del Sur expands the types of restaurants you have but the prices are more in line for the tourists. We do have our favorite Nica restaurants which are much cheaper and yet, very good. Some of our neighbors make various dishes to sell and they are very good values. Be sure to try out the fare of the street vendors, it’s part of the culture.
Labor Cost
The average paycheck is stated to be around $100 though many families receive money from relatives living overseas and there is so much black market that it is hard to say. Speaking English can easily double the income since the tourist-related jobs pay more.
As stated before, teachers make around $200 a month and it is a very desirable job since it also includes relatively good benefits. Maids, caretakers and gardeners will be $80-$120 per month depending on their responsibilities and hours. Repairman, painters, and other manual laborers usually quote a price for the project but they will expect you to pay for all materials. And they will usually use your tools since they rarely have them. You usually even have to buy paint brushes for the painters and they will not be usable after the job. Always get a written cost estimate before the job starts.
Like the states, there are lawyers everywhere and they charge very little for their services usually though the top three law firms charge up to $150 an hour. Our experience has shown that an expensive lawyer does not necessarily mean a better lawyer but they have better connections and usually speak good English. This may be important to you if doing a major project or a major purchase.
Having said all that, your cost of living in Nicaragua is substantially cheaper than living in the states or Europe. One of the reasons you may be moving to Nicaragua is to reduce your costs yet improve your lifestyle. Review your needs especially after renting here for a while. You will find that there are some things you no longer need and there are some things you absolutely will not live without regardless of what your neighbors think. We’ll try to present accurate pros and cons of various choices you will encounter. Finally, remember that these are our experiences and opinions. Also, remember that there are three prices starting at the highest: price for tourists, price for expatriates and the price for locals. Except at major stores, you can always barter especially when you buy more than one.
Location, location, location
Like any country, where you live will greatly affect your costs assuming everything else is equal. Our experience has been that costs are highest where the greatest number of expatriates live, for obvious reasons. More accurately, the greater percentage of expatriates to the local population will raise your costs. One way of comparing the cost of living is to compare the cost of housing in those locations. If the same house is 20% higher in one location then the cost of living will probably be higher there also.
Starting with the highest cost of living, the list goes like this:
Some would argue with the above list but San Juan del Sur is a good two hours from any sizable stores and that assumes you live in town. Many of the developments there are further away on bad roads.
Location within location is also important. Granada is the number one tourist location in Nicaragua and has a substantial number of expatriates. Within any city, the closer to the central park you are, the higher the cost of housing for purchase or rent. The central park exists in almost every town of substance here and is the heart of the city. Natives speak of pride in living close to the park. Living a mile outside Granada will substantially reduce your cost of housing yet accord you the conveniences of living near a major city though your cost of living will be about the same as those living in Granada.
You have many choices where to live. Are you the type to live by yourself on a farm or do you want the security of a development? Do you want to live within walking distance of good restaurants? How do you want to live? People forget that Nicaragua has not only the vast beaches and the colonial cities but also cool mountains and majestic valleys. Nicaragua has everything.
It is worthwhile to mention that many people moving to Nicaragua want to immerse themselves in the new culture and not be near many other gringos. This sounds good at first but often, after six or more months, you may want to meet and converse with people of like cultural background. Another reason to live in your chosen location for six to 12 months before buying.
For people buying a winter home or living here part-time, your selection criteria is completely different and the effect of the cost of living is much less since you are probably still earning a substantially higher income in the states or Europe.
Typical Costs
The cost of food and housing will be some of your highest costs and they will depend greatly on how often you eat out but there are many other costs. We’ll do a general overview here then cover each major topic in more detail.
We estimate our average total monthly cost is around $1,500 but that includes everything except traveling outside the country. We have a large, beautiful colonial home with a pool, employ a maid, a fairly new SUV and a motorcycle. Taxes are much lower here but they still exist and they probably will go up someday though they have dropped about 10% per year so far. You can find articles about people living on $500 in other countries but we live well and keep very active in the community. Eat local fruit, read books all day and never get sick if you want to live cheap.
Updated May 2013
The below monthly costs are typical for a typical home for a expatriate in Granada which tends to be a palace compared to the homes of the locals.
Homes
More detail is under the section of building vs renting but some quick tips are here. We can’t stress enough the importance of living in your chosen location for at six to 12 months.
Electricity is expensive here compared to the states and for Nicaragua, it is very high. But most people do not use much electricity. Assuming you do not leave all of your lights and ceiling fans on continuously, the highest cost items are your refrigerator, your pool pump and the number one cost, air conditioning. We never use air conditioning and most people do not since the luxury can cost over $100 per room per month.
The secret is to ensure you rent, buy or construct a home with good air flow. Roof vents and other means of letting rising hot air to escape are rare here though my next house will have them. There are many homes here that are beautiful and well-built but the bedrooms only have windows on one side meaning they need air conditioning to cool off.
Another common means of reducing your rent or supplementing your home cost is to have extra bedrooms to rent out. At this time, renters are more often looking for rental rooms instead of houses. The cost to the renter is lower and some people feel more comfortable being in a house with other people. Many of our friends do this successfully and it is a great way to meet interesting people. And they are like relatives, they usually do not stay that long.
Rents in Granada, Managua and San Juan del Sur are not substantially less than in Europe or the states unless you come from Los Angeles, New York City or Chicago. Still, a $1,000 a month will get you a substantial home with the comforts you would want. Check the ads on the Internet offered by most realtors and property management companies.
Maintenance
Once you buy or build a house here, the maintenance costs are much lower for several reasons. There is no carpeting, tile lasts forever, water damage is almost impossible, the walls are usually concrete instead of sheetrock, building materials are cheaper but mostly because labor is much cheaper.
Before our drainage problems were solved, our bedroom was flooded to the depth of four inches several times but there was no damage to the house. We painted every square inch of our house two years ago and the labor cost was under $200.
Cars, Transportation
Big decision you will have to make. Having a car, paying for gas and maintenance is a major expense if you are on a fixed expense. We have a large garage but the majority of homes here have no garages so you have the monthly storage expense ($20-25) plus the worry of your vehicle being in someone else’s possession.
We use our SUV rarely which means less than 2000 miles per year but we like the convenience of traveling when we wish. We also have friends that just hire a driver when they need it or of course, you can always rent a car. Much cheaper than owning a vehicle.
A third option is that some people here have a vehicle then hire a driver or a caretaker that also drives. This person then can also watch the vehicle while you running errands or whatever.
Entertainment
They are pirated but we can get first-run movies on DVD here for less than $1. We watched the new X-Men movie a month before it was released in the USA. You may feel a little guilty about using pirated goods initially but then you remember Tom Cruise getting $20 million for six months work and you realize that is even more obscene. Ladies, he is not very tall, get over it.
In Granada, we have a old movie theatre that shows first-run movies for around a buck but most people go to Managua that has many movie theatres of the same quality as the USA but for $2.50. Like the states, the popcorn and the drinks cost as much as the movie tickets but here you can also get a beer.
Living in another culture is a form of entertainment. Relish it and enjoy it.
Income Taxes
The USA requires you to file your taxes each year even if you live here. I believe only the USA and North Korea taxes foreign income on their citizens. You must report any income, any capital gains and notify the IRS of any foreign bank accounts. The fines are substantial for not doing so and you know that the USA is even going after Swiss and Panama offshore accounts. If you renounce your USA citizenship and they determine it is to avoid taxes there are very substantial fines up to 50% of your assets.
Do not listen to anyone that tells you otherwise or that you can take a huge deduction against your foreign or domestic income. There are stipulations for enjoying that deduction, Nicaragua does have a reciprocal agreement with the USA so Nicaragua will not tax you for any income taxed by the USA.
The Nicaragua government knows most citizens and certainly, expatriates will not report interest income so if you have a bank savings account here, the bank usually automatically gives 10% of your interest income to the government.
Talk to a tax expert familiar with foreign income or expatriates living abroad. There aren’t that many with that knowledge. I used the International Living tax bible which they sell and found it had a wealth of information I used to help file my taxes.
Cost of Going Home
If you are the type of person needing to return to the states every few months then you should consider that cost and budget for it. As of this writing, the major carriers are cutting back on the number of flights and air fares are increasing especially due to taxes and security fees. I recently found round trip tickets for $100 from here to Charlotte, NC but the taxes and fees added another $400.
Still, the proximity of Nicaragua to the states is a major plus. Nicaragua is much closer to Miami than Los Angeles. Flight time – 2 ½ hours.
Taxes In General
It would be rare for you to have to file taxes in Nicaragua unless you plan to start a business or work for a salary. Nicaragua does not expect people to pay their taxes so most of their taxes are immediately collected. For example, if you sell a property, there is a property transfer tax which is paid at the closing. If you have a savings account, the bank usually gives 10% of your interest to the government.
If you hire a regular worker like a maid, gardener or caretaker then you will be paying fees to the government for the employee’s social security and medical. More details on this in the section on domestic help.
Sales tax (IVA) is substantial at 15% but it is usually already included in the price of the item and many times, you do not pay it because the vendor is not reporting his income to the government. Most restaurants had included the IVA in their menu prices but in the last two years some restaurants started adding the IVA of 15% at the presentation of the bill which substantially increases the price of eating there. Be sure to check before ordering since 15% sales tax plus 10% adds substantially to your bill.
Property taxes are an art in Nicaragua. Do not argue over your taxes because you will lose. The alcadia (city or state offices) has the authority to tax you whatever they wish. Officially I believe it is .8 to 1% of the catastral value of your home. The catastral value can be anything they decide though almost always much less than the value paid. For example, we paid $189,000 for our house originally and it has a value of around $250,000 but the catastral amount is around $30,000. It is not unusual for a buyer and seller to agree on the value the sales contract states regardless of the purchase price. After all, it reduces the profit the buyer will show. Still, the property appraiser can agree or change the catastral amount to anything he or she believes.
Spanish Classes
If you are not able to hold a basic conversation in Spanish then you should consider Spanish lessons. You did move here to learn another culture and language is necessary to learn this culture even if only for basic conversation. Unfortunately, Nicaragua has one of the lowest percentages of people in the Latin world knowing any English. And when you leave the major cities there will be very few people knowing any English.
Spanish language lessons are one of the most expensive services you will pay for other than professionals like doctors, lawyers and architects. Typical costs are $5 to $7 an hour and many of the instructors expect more if there are two or more students at a time. You can get package deals if you sign up for many hours per week or for many weeks. It took a long time to find a Spanish instructor that would charge only $5 an hour to work with my wife and I and to come to our house twice a week.
You may not think $5 an hour is substantial but very few of these instructors are properly trained language instructors and in a country where teachers make $200 a month and policeman even less, it is very high and everyone offers it.
Take the time to find a good instructor that speaks clearly and understands the rules of grammar. Personally, I think the instructor should also be able to speak some English or the learning process will take longer. The best method is total immersion where you live with a family in their home. We learned more in two weeks of immersion than in six months of four hours per week.
Food
The food is excellent here but the restaurants owned by the expatriates can be relatively expensive depending on your budget. A $5 cheeseburger may sound reasonable in the states but that is a lot of money here. Every major town has a market and the costs of the various foods there are very low but it takes time to go to the market every day.
Ladies come everyday to our door selling fruits and vegetables. Their prices tend to be a little higher than the market but then you have the convenience. A young man brings us fresh seafood and an older gentleman brings us fresh bread. We have fast food outlets in the larger cities such as Subway, McDonalds, Burger King and Pizza Hut but the prices are about the same as in the states. We have three Chinese restaurants in Granada though only one is similar to what you would expect from a Chinese restaurant.
Living in a tourist town like Granada or San Juan del Sur expands the types of restaurants you have but the prices are more in line for the tourists. We do have our favorite Nica restaurants which are much cheaper and yet, very good. Some of our neighbors make various dishes to sell and they are very good values. Be sure to try out the fare of the street vendors, it’s part of the culture.
Labor Cost
The average paycheck is stated to be around $100 though many families receive money from relatives living overseas and there is so much black market that it is hard to say. Speaking English can easily double the income since the tourist-related jobs pay more.
As stated before, teachers make around $200 a month and it is a very desirable job since it also includes relatively good benefits. Maids, caretakers and gardeners will be $80-$120 per month depending on their responsibilities and hours. Repairman, painters, and other manual laborers usually quote a price for the project but they will expect you to pay for all materials. And they will usually use your tools since they rarely have them. You usually even have to buy paint brushes for the painters and they will not be usable after the job. Always get a written cost estimate before the job starts.
Like the states, there are lawyers everywhere and they charge very little for their services usually though the top three law firms charge up to $150 an hour. Our experience has shown that an expensive lawyer does not necessarily mean a better lawyer but they have better connections and usually speak good English. This may be important to you if doing a major project or a major purchase.
Posted April 18, 2014
Jeffrey Soderlind - Horizon Group
The cost of living in Nicaragua is considerably cheaper than anywhere in the US, Europe, Asia and most Latin American countries. I have lived here for over 9 years and my wife and I average about US $1,500/month in regular expenses. We do not have any kids, but that includes everything from rent, utilities, food, fuel, etc. We'll usually spend another $500 to $1,000/month when we go on travel adventures to Ometepe Island, the Corn Islands...
The cost of living in Nicaragua is considerably cheaper than anywhere in the US, Europe, Asia and most Latin American countries. I have lived here for over 9 years and my wife and I average about US $1,500/month in regular expenses. We do not have any kids, but that includes everything from rent, utilities, food, fuel, etc. We'll usually spend another $500 to $1,000/month when we go on travel adventures to Ometepe Island, the Corn Islands in the Caribbean or up into the mountains of Matagalpa.
Posted August 17, 2014
Frank Martínez
Housing is very affordable in Nicaragua even though currently we have a shortage of houses and apartments, which gives the owners leverage over people who are looking for a place to live. The most expensive housing in Central America is Costa Rica, while the least expensive is Honduras. Nicaragua is in the middle. Housing is not extremely cheap compared to the rest of Central America.
A 2,500 square foot home with 3 bedrooms, 2 bathrooms in a nice...
Housing is very affordable in Nicaragua even though currently we have a shortage of houses and apartments, which gives the owners leverage over people who are looking for a place to live. The most expensive housing in Central America is Costa Rica, while the least expensive is Honduras. Nicaragua is in the middle. Housing is not extremely cheap compared to the rest of Central America.
A 2,500 square foot home with 3 bedrooms, 2 bathrooms in a nice area would cost around US $1,000 to $1,200 to rent. If you buy, then it will be in the $200,000 range. Electricity in Nicaragua is one of the most expensive commodities in Central America, but the rate is different by zones in Nicaragua. The rate you pay depends on where you live. We don’t have a standard price for the electricity. So even though we have the highest rates for electricity in Central America, the cost of electricity could be very cheap in some areas. Even Managua has different prices and the price depends on the neighborhood. The upper class areas pay the most for electricity.
You can have a $200,000 home in front of the beach and pay only 1,000 Cordobas (about $37) per month for electricity. It might not make sense, but that is how the system works here in Nicaragua. If you live in the best neighborhoods in Managua, you will pay high electric rate. If you live in the beach communities, then the prices are lower.
I know many families who are moving back to Nicaragua because here we have a low cost of living. We don’t pay high property taxes. We can pay property taxes every 3 years. If you are moving from the US, there are some laws that will allow you to have a residency and have tax breaks and tax incentives. You can move your things into Nicaragua without paying anything. Here in Nicaragua, the dollar is stable; it doesn’t fluctuate a lot like in other countries. If you sell your dollars in Nicaragua, you’ll see that it has more value here than in the US.
The prices of anything that you buy in the supermarket are very stable, too. Inflation is very low here. All these give the people (and you, if you live in Nicaragua) great purchasing power.
Posted December 18, 2014
Eddy Marin-Ruiz - The Mortgage Store Nicaragua
The cost of living in Nicaragua is very low. I tell people that a retiree, a husband and wife, or partners, can retire in Nicaragua comfortably for about US $2,500 per month. They would be living around the beach in one of the beach resorts. They would have a full time maid who works from 8 AM to 5 PM for 5 or 6 days a week. They would have a handyman / chauffer.
With a budget of $2,500, utilities and food will all be paid for and they would live very...
The cost of living in Nicaragua is very low. I tell people that a retiree, a husband and wife, or partners, can retire in Nicaragua comfortably for about US $2,500 per month. They would be living around the beach in one of the beach resorts. They would have a full time maid who works from 8 AM to 5 PM for 5 or 6 days a week. They would have a handyman / chauffer.
With a budget of $2,500, utilities and food will all be paid for and they would live very comfortably.
(Street in beach town of Playa Montelimar in Nicaragua, pictured.)
Posted August 6, 2015
Joseph Bowersmith
The cost of living in Nicaragua depends on the level you desire to maintain. If you desire to eat food of the same quality you're used to in the US, you're going to be paying probably about 75% of US cost. If you want to live and eat food more on the local level, you can probably drop that cost to about a half of what you would pay in the US, but your food choices are going to be more limited and also blander. You'll be eating rice and beans, fried eggs and maybe fish or chicken...The cost of living in Nicaragua depends on the level you desire to maintain. If you desire to eat food of the same quality you're used to in the US, you're going to be paying probably about 75% of US cost. If you want to live and eat food more on the local level, you can probably drop that cost to about a half of what you would pay in the US, but your food choices are going to be more limited and also blander. You'll be eating rice and beans, fried eggs and maybe fish or chicken from time to time.It’s been three and a half years since we were renters in a barrio called Linda Vista, in Jinotega. When we were renting, the rent started about US $150 a month for a two bedroom, one bathroom house. The home was tiled and it was decent, sturdy construction. The only fault I had was with the design of the roof. It leaked quite a bit during the rainy season. By the time we finished renting, our rent went up to $200 a month.
It seems that the rents vary depending on what the landlord thinks they can get from you when they see you the first time. If you have a Nicaraguan doing the inquiries for you, you'll hear a lower price. However, if you do the inquiry, they'll look at you and judge you by your shoes, your clothing and see how much more can they get from you. It's not beneficial to dress up the first time you're meeting someone who's going to be charging you for something here in Nicaragua. As an example, friends of mine were renting a house that was about the same as we were in, except that they had more problems and they were paying $400 - $500 a month. So your cost for rent can vary all over the place, depending on what the owner thinks they can get from you.
Jinotega is in the northern part of Nicaragua, in the mountains. We're about 28 miles from Matagalpa. This is amongst more Nicaraguans and not an expat area. We were here about 4 years before we felt comfortable enough with the culture, knew enough to avoid the scams, and did enough research and had enough experience to know the best prices of land, to buy our own property. That’s when we decided to purchase property and build our house on it, because a lot of the houses we looked at just didn’t come to standards for the prices they were asking that we could achieve if we purchased the land and built our own house.
Fortunately, here in Nicaragua, electricity is on a stepped scale. The more wattage you use, the more you pay. They have a break point at 150 kilowatts per month. When you hit that, it doubles your bill automatically with the first watt over that. If you go over 150 kilowatts in a month, you could get a very expensive bill. Our electricity bill usually runs around $25 a month. But when I go over 150 kilowatts in a month, even by just 1 or 2 watts, your bill will double to $50.
For water, we're charged a flat rate per square meter of water that we use, and the bill come to about $4 a month. We don’t have a sewer; I've got a septic tank.
Property tax laws have changed recently. Last year, I paid $45 property tax for the new house we just constructed. Until I sell the house, they charge me property tax based on the price I paid for the land; they haven't come out and assessed the house. When I sell, that will assess the new property and someone's going to be hit with a property tax bill in the area of $150 - $200 a year. It's not like in the States.
(Ferns and other plants growing out of the sod wall and roof in Matagalpa, Nicaragua, pictured.)
Posted August 7, 2015
Carolyn Membreño - León Travel Bureau
Overall, the cost of living in Nicaragua depends on your lifestyle, and, with the constant influx of expats, it is increasing, including prices for rental properties. Locals find that things are much more expensive than they used to be. On average, living in Leon, specifically, it would cost you US $600 to $700 a month to rent a small furnished home including all of your utilities. Most small two-bedroom rental homes in Leon are furnished. There are some...
Overall, the cost of living in Nicaragua depends on your lifestyle, and, with the constant influx of expats, it is increasing, including prices for rental properties. Locals find that things are much more expensive than they used to be. On average, living in Leon, specifically, it would cost you US $600 to $700 a month to rent a small furnished home including all of your utilities. Most small two-bedroom rental homes in Leon are furnished. There are some that are rented for only $200 a month but they would be unfurnished and appliances are not included, either. You just pretty have the shell of the house and you have to furnish it yourself. For $600 to $700, you could rent a small two-bedroom house with a nice patio. The utilities would probably be included in the rent. If you go to the smaller communities, you can find a house to rent for about $50 a month but if you want to live in a major city with major resources like Leon then it would cost around $450 and up.
Some rentals, depending on the owners, already include a gardener and a housekeeper, which commonly is something for which you would pay extra. Pretty much the houses for rent in this price range are “turnkey properties”, which means that you don’t need to do anything or buy anything. Everything is included so you just have to move in. Sometimes, they even include electricity in the rent, too. Your electric bill here in Nicaragua would just be a fraction of what it would be in countries like the US, for example. I used to live in a small two-bedroom flat here in Nicaragua and my average electric bill every month was about $10 and my water bill was about $5. This is having normal usage during the day with a refrigerator plugged in all day and I was also using a computer.
If you want to rent a three-bedroom, two-bathroom, 2,500 square foot home in a safe area in Leon, you could consider renting in one of the more exclusive neighborhoods, such as Fatima, which is where a lot of the politicians, business owners and families with old money live. The cost would run you maybe $1,000 a month and up but you would have a pool, a nice landscaped yard, and it is in a nice and safe neighborhood. It could also include all the utilities as well.
Food is very inexpensive here, whether you like to cook or if you like to eat out. For example, if you are buying breakfast, you could spend around $2 at a local restaurant. We have many supermarkets. American brand foods are easily available but they are a little bit higher-priced because they are imported. It is kind of interesting that peanuts are grown here but if you buy a jar of Skippy Peanut Butter it would be twice as much as you would pay for it in the US. On average, depending on your lifestyle, you could probably spend $10 per person, per day at a local restaurant, which would cover full meals for breakfast, lunch, and dinner. If you are going to one of the many exclusive-priced, high end restaurants in Leon, you would spend an average of $30 for a really nice meal with drinks for two people.
One of the really great advantages about living here in Nicaragua is that food is pretty much from farm to table. About 75% of the food that people sell here is locally grown. That is one of the benefits of avoiding the high cost of processing, as a lot of fruits and vegetables come directly from farm. You can to the market at 5 AM and find tomatoes, bananas, etc. that have just been picked up fresh from the farms ad brought to the market for sale. A banana, on average, will cost you a penny. It is cheap to buy fruits from the local markets. If you are not into cooking, eating out at the local restaurants are also cheap. You can get a full meal for only $2, which is sometimes even cheaper than buying the ingredients and cooking your own food. In comparison to buying food in New Jersey, the cost to buy food in Nicaragua is only about 1/3.
(Street scene from Leon, Nicaragua, pcitured.)
Posted January 8, 2016
Marissa Gabrielle Lolk - Jireh Dental Care
The cost of living in Nicaragua depends on your lifestyle. When I moved here, I thought about it and asked myself what kind of life I wanted to live. There are people who come here and want to live like the backpacker; eco-style. More power to them. They have significantly less cost than everybody else. Then you have people who come here to retire and some of them have the mentality where they want to live like they do in the States but they are open to being more “Nica (following...The cost of living in Nicaragua depends on your lifestyle. When I moved here, I thought about it and asked myself what kind of life I wanted to live. There are people who come here and want to live like the backpacker; eco-style. More power to them. They have significantly less cost than everybody else. Then you have people who come here to retire and some of them have the mentality where they want to live like they do in the States but they are open to being more “Nica (following the Nicaraguan lifestyle).” Then there are people who move here because they are either embassy families or they came here to start a business but have no plans of living here forever but they are planning of being here for at least 10 years. These people tend to have a more upscale kind of lifestyle. For example, they work for the UN or a big non-profit, and they have a pretty luxurious life here. If you are an embassy family or if you’re here from the US but you’re doing any kind of mission, they have such a nice kicked back life because usually their jobs pay for their homes, their guards to take care of the homes, their drivers, their cars, etc. They have a different lifestyle. They have their own paycheck that they can use to do things like travel, and eat. This group of people probably spends at least $10,000 a month because they live a really good life, they have several employees, etc. Then there are people who come here to retire. From what I’ve heard from patients of mine, they live off of their retirement money or the pension they get. They make it work. They usually have their little home, which is either rented or owned. If they are expats and they came here with the idea of living here, they usually buy a house and they adjust themselves to the Nicaraguan lifestyle.
Then there are the eco people that are like backpackers. They are more inclined to try more native food so they are not looking to splurge on trying to make pho (Vietnamese noodles) at home or going out to eat at really nice places. They are more into the experience of being an actual native.
If you rent a house in a good neighborhood, you will spend around US $600 a month. For a couple, you can easily get by on $300 worth of food for a month. If you have a good live in housekeeper or maid, you will spend around 6,000 córdobas ($215) a month. So about $1,500 a month is enough to cover your rent, food, housekeeper, utilities, Internet, cable, and gas.
Utilities are expensive here in Nicaragua. Electricity is really expensive here and they charge you depending on the neighborhood in which you live.
(La Bastilla Ecolodge in a coffee plantation, Jinotega Nicaragua, pictured.)
Posted March 21, 2016
Barry Oliver - Surfing Nahua
One of the main reasons I left San Diego in 2001 was the high cost of living. San Diego is probably one of the most expensive places to live in the US. The comparison between the cost of living in Nicaragua and in San Diego is huge. The cost of living in Nicaragua in general is only about a tenth of the cost of living in San Diego. In Nicaragua, you can get a nice 2-bedroom rental house on the beach long term for around $500 a month. Food costs...
One of the main reasons I left San Diego in 2001 was the high cost of living. San Diego is probably one of the most expensive places to live in the US. The comparison between the cost of living in Nicaragua and in San Diego is huge. The cost of living in Nicaragua in general is only about a tenth of the cost of living in San Diego. In Nicaragua, you can get a nice 2-bedroom rental house on the beach long term for around $500 a month. Food costs depend on how often you eat out. If you only ate at home, it would cost a couple of hundred dollars a month. If you eat out quite a lot, it would cost around $400-$500 a month. If you have a car, you have to add that on top of the housing and food costs. Some people use public transportation or bikes in Nicaragua, and that can significantly bring the cost of living down.
It is possible to live for less than $1,000 per month in Nicaragua, but if you have a car, eat out a lot, and like to travel to different tourist spots around Nicaragua, you’ll have to double that. For $12,000 a year, you can live on a low budget in Nicaragua. That would mean only eating at home and not having a vehicle for transportation. If you double that, you can have a fairly decent 4X4 vehicle to get you around where you need to go, and have time and money to travel. Everyone can have a good time in Nicaragua.
The rates mentioned above are for a single person. For a couple, you only have to add food since the rent and the vehicle costs will be the same. For a couple living in Nicaragua who love to travel around the country, $30,000 a year is enough, including living in a beach home in Nicaragua and having a decent vehicle that they can purchase and spread the cost over three years. Before I left San Diego, I was spending about the same amount that I spend now in Nicaragua, but I was living near the beach, as opposed to on the beach. If I lived on the beach in Northern Nicaragua, I would have paid ten times as much.
(Beachfront living in Northern Nicaragua, pictured.)
Posted March 27, 2017