DoubleTaxationTaxes on salary: Nicaragua preliminary data
How much income tax and social contributions are paid on a salary in Nicaragua, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | NIO 2,575,641 ≈ €60,000 |
|---|---|
| Income tax | NIO 651,104 ≈ €15,168 |
| Employee contributions | NIO 180,295 ≈ €4,200 |
| Take-home pay | NIO 1,744,242 ≈ €40,632 |
| Employer contributions and payroll taxes | NIO 579,519 ≈ €13,500 |
| Employer's labour cost | NIO 3,155,160 ≈ €73,500 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 NIO 1,287,820 | €60,000 NIO 2,575,641 | €120,000 NIO 5,151,281 |
|---|---|---|---|
| Sole proprietor | NIO 605,597 52.3 % | NIO 1,211,195 52.3 % | NIO 2,422,390 52.3 % |
| Company | NIO 469,410 40.5 % | NIO 938,821 40.5 % | NIO 1,877,642 40.5 % |
| Sole proprietor · Régimen Simplificado de Cuota Fija (Impuesto de Cuota Fija) — monthly sales up to C$10,000 (exempt) | above the regime's limit | above the regime's limit | above the regime's limit |
| Sole proprietor · Régimen Simplificado de Cuota Fija (Impuesto de Cuota Fija) — monthly sales C$10,000.01-20,000 (top of the fee range) | above the regime's limit | above the regime's limit | above the regime's limit |
| Sole proprietor · Régimen Simplificado de Cuota Fija (Impuesto de Cuota Fija) — monthly sales C$20,000.01-40,000 (top of the fee range) | above the regime's limit | above the regime's limit | above the regime's limit |
| Sole proprietor · Régimen Simplificado de Cuota Fija (Impuesto de Cuota Fija) — monthly sales C$40,000.01-60,000 (top of the fee range) | above the regime's limit | above the regime's limit | above the regime's limit |
| Sole proprietor · Régimen Simplificado de Cuota Fija (Impuesto de Cuota Fija) — monthly sales C$60,000.01-80,000 (top of the fee range) | above the regime's limit | above the regime's limit | above the regime's limit |
| Sole proprietor · Régimen Simplificado de Cuota Fija (Impuesto de Cuota Fija) — monthly sales C$80,000.01-100,000 (top of the fee range) | above the regime's limit | above the regime's limit | above the regime's limit |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover Nicaragua yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 42.927342 NIO (Banco Central de Nicaragua — tipo de cambio oficial, fixed at 36.6243 for 1 Jan–31 Dec 2026 (0% crawl), 02/01/2026) ↗
Sources
- WTO Import Licensing (Government of Nicaragua submission) — Ley No. 822 de Concertación Tributaria (2012)
- UNAN (public university) copy of Ley No. 987, reform of Ley 822, La Gaceta No. 41 of 28 Feb 2019
- US SSA — Social Security Programs Throughout the World: The Americas, 2019 — Nicaragua
Data checked: 08/11/2026. An indicative calculation for a typical case. Not tax advice.