The Cost of Living in Nicaragua
Thanks for checking out this article, written to help estimate your unique cost of living in in Nicaragua. Given your needs, wants, household and other factors I’ll give a range of costs. Then you can use that to determine your likely budget.
I travelled extensively looking for my favorite place to live, invest, and do business. The low cost of living here in San Juan Del Sur was one of the many factors in my choice to move here.
The standard of living you get for your money is excellent. Especially if you’re coming from the US, Canada, Europe, Australia etc. Given the high taxes and restrictions on life in more developed countries I think more people should consider moving abroad for personal and financial freedom.
The vast majority of expats moving to Nicaragua are coming to San Juan Del Sur. I’ve got an article on recent trends you can read here. So this article will go over what is costs to live in San Juan.
Overview:
The information in this article covers the most common types of people moving here. If you own your property a single person would spend around $900-$1100 USD, couples around $1200-$2500 per month, and a family of four in the $2200-$5000 range. As you can see it can be a wide range depending on your desired standard of living.
Housing:
Home Ownership:
Most people moving here are buying property. Value for money is vastly better than just across the border in Costa Rica. Most people use the property purchase, via a corporation they form and own here, as the investment strategy to acquire residency.
Obviously owning property dramatically decreases your monthly living expenses. If you’re renting it’s likely going to consume a third of your budget. Ongoing costs of home ownership are low compared to most other countries.
Home owners association fees: These vary by community. From as low as $50 for communities with a gatehouse, basic road maintenance and water access to $330 for places with shared pool, landscaping crews, and roving security. You can always contact me if you want more info on the costs in certain neighborhoods.
Home insurance: It may be surprising but most people do not have home insurance. There are a number of reasons including the concrete and metal based building techniques, reducing major fire risk, and the low cost of labor. Should you need repairs they won’t break the bank.
Insurance rates per dollar of coverage tend to be similar to the US but with higher deductibles.
Property maintenance: $50 - $100 per month. Most homes here are built with durable materials. All of which are extremely require minimal maintenance as long as you address things as they arise.
Rental management: $150 / month + a percentage of income if you hire someone to handle rentals. If you’re looking for a manager to take care of your property while away there are a couple good options. Check out the article on that for more.
Rent: From $500 for a very basic in town apartment to $2500 + if you’re looking for plush digs.
Taxes and Fees
Income taxes:
Nicaragua has a territorial tax system. If you are working remotely and your income is generated abroad you pay zero income tax. This is obviously an enormous savings if you become a non tax resident in your home country, which is almost all with the exception of the United States.
Americans can avoid taxes on the first $107,600 of income per person though, so it’s still an enormous savings. Depending on your needs a Panamanian corporation can be extremely useful and we offer those services.
Property Tax
Property taxes: The municipal property tax is 0.8% of the assessed value. So on $300,000 home expect to pay $2400. There is a 10% discount if paid in the first three months of the year
Residency Costs
Identification renewal: $100 / year. The new law on residency means that with your five year renewable residency you need to get a new identification card every six months. The cost is $50 per card. You can see the article on residency here.
Utilities:
Power: $50-250 / month. The biggest variable on power is use of air conditioning. Most expats use it at night.
Water: $20 USD – $50 USD a month. Water is inexpensive
Internet: Starts at $25 and goes up to $115 for fiber optic. Most expats choose packages in the $60-$115 range, especially if you’re working remotely.
Sewer: Most expats live in gated communities not attached to the city sewer, using septic tanks instead. Figure on $200 / year for servicing.
Food, Drinks & Consumables
Groceries: I have a full article on grocery shopping in San Juan Del Sur. Most of the food is locally grown and delivered fresh.
This is highly variable cost, with a single individual possibly getting in around $100-150, and a family of four spending between $400 and $500.
Restaurants: This depends on you, if you want to eat out all the time. But it’s still amazing value. I love the $10 filet mignon at El Polito Pescador for example.
Pets: Vet care is also very inexpensive, a fraction of North America. SOS Animales Nicaragua offers vet care for your furry family members.
Transportation:
Gas & diesel: Obviously this varies but at time of writing prices are around $1 / liter, $3.80 per gallon. Diesel is slightly cheaper. You can see current prices here.
Vehicle repairs: Labor in Nicaragua is very inexpensive. I find my bills are 50-80% lower than North America. Check out the article on buying a vehicle in Nicaragua. I recommend diesel Toyotas.
For my clients I connect you with the best mechanic and a car expert that helps you avoid a lemon, and also likely will save you money by bartering down.
Car insurance: Starting at $65 per year. Basic coverage is incredibly inexpensive. Full coverage depends on the insured value and is around $2000 / year for a $20,000 vehicle.
Health and Personal Care
Health insurance / medical care: I recommend insurance directly from the Vivian Pellas Hospital. Children’s insurance is $30 / month, the top tier gold plan for adults is $60, and for seniors it’s $95. You can see the packages here. Then for a detailed description of the primary and emergency care see the article on health care in Nicaragua.
Doctors visits: $40 / consult. My wife Dr. Melida Manzanares offer virtual and in person home visits (conditions apply).
Prescriptions: In general prescription drugs here are a fraction of the cost in developed countries.
Personal care: For the men haircuts are incredibly cheap - usually around $4. Ladies cuts vary based on their style but are also a fraction of Canada or the States. Spas and salons are also a tiny fraction North American costs. Brush Your Hair is the best salon in town.
Beauty salons are inexpensive but to be honest I don’t know a thing about them.
Entertainment and Fitness:
For a full overview of what the community offers I have an article on community you can check out to see what you can do.
Golf at Hacienda Iguana’s nine whole course an hour and ten minutes north of San Juan Del Sur, is $25 to $30 with clubs and cart
The Art Warehouse offers a ton of fun options starting around $10
Gym: The Fight Club Gym charges $30 / month for non-residents, and $20 / month once you get residency
Yoga: Zen Yoga is the staple of the scene drop ins are $10, five class packs are $40, and ten pack $60
Massages: $30 - $40. Gabby Spa is one of the best if you want a massage
Sailing trips: $90. Nica Sail and Surf and Esmerelda Sailing offer great trips up the coast
Surfing:: $30 / lesson. If you’re looking to learn its a great place and I can connect you with the best instructors.
Live music is on most nights somewhere, grab a $1 beer and. enjoy.
Employees:
A gardener ranges from $40 to $80 per month depending on duties such as pool care
A maid / nanny is around $300 per month and is a fantastic option in my option if you’re working remotely, have kids, or just don’t like cleaning, laundry and dishes.
Families:
School: Most expat families choose the excellent bilingual San Juan Del Sur Day School, staffed by North American trained teachers, and tuition is $400 per month.
As mentioned above a maid or nanny is very reasonable, allowing parents to spend more time enjoying life with kids rather than cooking and cleaning.
Swim teams, soccer, baseball, gymnastics and basketball are all available for nominal fees.
Summary:
I hope this information was useful. You can estimate your spending based on which of the aforementioned items apply to your individual wants and needs. Overall the quality of life for your money is phenomenal here.
That’s especially tru if you are earning money from abroad or receiving pension income and paying no income taxes here. The combination of low cost of living and lack of taxes is phenomenal.
If you’re considering making the move down reach out to me and I’ll be happy to assist.
Thanks for reading.
Joel Stott-Jess
LifeInNica.com
Cell / WhatsApp: +505 8176 8624
US Number: 1 786 753 8743
Skype: joelstottjess
Joel Stott-Jess is a New York Times featured agent / broker in San Juan Del Sur.
Originally from Alberta, Canada he has been doing business in Nicaragua since 2014.
An investment consultant, serial entrepreneur, surfer, and outdoor enthusiast he is an expert on the real estate and business markets in Nicaragua. He also operates The Central Investor, a real estate and investment blog focused on the entire Central American region.
Thanks to his lovely Nicaraguan wife, a medical doctor, he is also well informed on health care services in the country.
