New and used automobiles are expensive in Nicaragua, due to a 15% import tax and a 15% sales tax.
Because of the hefty prices, Nicaraguans hold on to their cars or trucks for a longtime, before trying to sell them at a stiff price when the vehicle becomes a teenager.
In 2005, a ’91 Honda Civic is listed in the classifieds for close to $2,000. By comparison, a used 2003 Toyota 4 Runner will go for around $35,000; a sportier 2001 Mercedes Benz will go for $32,000; and an older Ford F150 (’94) will ask $5,500.
Asian vehicles – especially Korean-built cars and trucks – retail for less than American made vehicles, and are much more common here.
Although it may seem obvious, you are better off considering a truck or 4x4 vehicle with a higher clearance if traveling outside of Managua. Most of Nicaragua’s roads are pothole ridden and in poor condition. In many areas, the roads are made of dirt and rock, resembling dry riverbeds. In these areas, four-wheel drive is a must, especially during the rainy season, when roads flood easily during deluges.
Pick up a copy of the daily newspaper La Prensafor the yellowpage classified section, with a full daily listing of used vehicle sales.
Insurance is available here, but protocol for accidents is different, especially if someone is injured. If there is an accident with injuries, all involved parties are thrown in jail until the judge can sort out who is responsible.
You should also not buy or bring a car here if you don’t have a safe place to put it at night. People do not leave cars on the street at night. If you do, you will find out why no one else does.
If you become a resident here, or invest in a tourism business that qualifies for investor incentives under the Law 306, you will qualify for a duty-free import of a vehicle with a sticker value of $10,000.
If you opt to ship your vehicle to Nicaragua by freighter ship, note that it will usually enter through Port Limón in Costa Rica, or Port Cortez, in Honduras. IN some cases, it will enter Nicaragua through Rama.
Documents Required:
1) Passport
2) Residence Visa
3) Proof of employment
4) Insurance documents
5) Original inventory (translated into Spanish) of value declared for customs (include brand name of vehicle, serial number, model and price)
6) Purchase invoice, legalized by Nicaraguan consulate in country of origin
7) Letter authorizing clearance of shipment
The quickest way to import a vehicle is to ship to Costa Rica and have the container clear customs in San José, where it will take several days to several weeks, and cost about $100 in customs fees.
For more information on shipping companies, visit website: http://nicaragua.shipping-international.com/customs/
If you speak Spanish, Ronald Lacayo [tel. (505) 233-1444 or 263-2409] in Managua offers customs services of clearing your car into Nicaragua, for a service charge of $150 (plus the 15% import tax on the value of your vehicle). Other law firms can offer similar services.
If you have all of your paperwork in order, your vehicle should not take more than a month (at the most) to reach Nicaragua, depending on your port of embarkation. If your car is sent from Miami it may take less time to reach Nicaragua. From the West coast or New York, you can expect to pay more and wait longer.
You will have to make sure your shipping company sends the following documents: title or pink slip (título de propiedad), registration, copy of passport, original bill of lading (conocimiento de embarque) and the name of the shipping company. Also make sure your car has Canadian or U.S. plates or the whole process may be delayed.
Once your vehicle is in the country:
Tourists can drive in Nicaragua on their home country’s license for a period of 30 days.
Like tourists, your vehicle will be granted a three month visa to remain in the country, so it is important to begin early on the process of legalizing your vehicle here, although it is possible to extend your vehicle’s temporary visa, if need be.
To nationalize your vehicle here, you must have all the original documentation of purchase (invoice and ownership title), transport and entrance (RESA).
If you opt to drive your vehicle down from the United States (a drive that can take several weeks, depending on how hard you push it), expect delays and corruption at border crossings. It is not a good idea to drive in Central America after dark (due to bandidos and drunks staggering onto the darkened road), and note that parts of southern Mexico and Central America – specifically Honduras – can get dicey.
For more information about driving from the U.S. to Central America, you can purchase a new guidebook, Driving the Pan-American Highway to Mexico and Central America. You can now order this one of a kind book by writing to Costa Rica Books, Suite 1 SJO 981, P.O.Box 025216, Miami Fl 33102-5216. |
