Nicaragua: Tax Incentives for Renewable Energy

The Executive has submitted a reform bill to extend tax benefits for investments in renewable energy projects until January 2018.

Thursday, May 28, 2015

Among the tax incentives that exist for investment in renewable energy is exemption from the "... Import Custom Duties (DAI), Value Added Tax (VAT) and Income Tax (IR). "

The initiative aims to reform Article 8 of Law 532, which cites that "investors interested in promoting the development of new projects in power generation from renewable sources or make additions to generating capacity from renewable sources, may receive the benefits established by law number 532, for a period of time which ends on 1 January 2018 ".

Elnuevodiario.com.ni reports that "... Similarly, domestic and foreign investors will benefit from exemption from all municipal taxes applicable on real estate, sales and registrations during the construction of the project, exemption from all taxes that may exist on the exploitation of resources and tax exemption tax stamps (ITP), which may be incurred by the construction or operation of the project during ten years. "



More on this topic

Tax Exemptions for Renewable Energy

December 2017

Until 2023 renewable energy projects in Nicaragua may opt for the exemption of import duty on machinery and equipment, VAT, income tax and municipal taxes.

The National Assembly approved a reform proposed by the Ortega administration to extend the term of tax benefits for energy generation projects with renewable sources. The law established that the maximum period to opt for exemptions was January 2018, but now they will remain in place until January 2023.

Renewable Energy Tax Incentives Extended Until 2023

November 2017

In Nicaragua, the Ortega administration is proposing to extend tax benefits for energy generation projects using renewable sources for another five years.

Continuing with the strategy of promoting energy generated from renewable sources, the government is proposing extending tax incentives for these types of projects, as it did in June 2015. At that time, the benefits were extended until January 2018. 

El Salvador: Incentives for Renewable Energy

September 2015

A proposal has been made to extend the list of natural resources and technologies that enjoy benefits, eliminating the limit of 10 MW in order to encourge larger projects and providing incentives for the expansion of existing plants.

The proposal put forward by the executive branch:

Nicaragua Extends Exemptions for Renewable Energy

June 2015

The National Assembly has amended article eight of Law 532, extending for five years the incentives for investments in this sector.

From a statement issued by the National Assembly:

The National Assembly with 84 votes approved on June 2, Law Reform Law 532, Law for the Promotion of Electricity Generation from renewable sources.

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