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Should I Retire To Nicaragua?
If you’re saying to yourself “should I retire to Nicaragua?” Yes, you should consider it if your budget is limited. Nicaragua is very affordable but doesn’t come without concerns. It is a beautiful country with a rich history, as with most third world countries you need to take the amazing with the bad.
Nicaragua is a Latin American country located in Central America with flights catered by major airlines. It has a low population density of 6M for the whole country and Spanish as the official language. This country is loitered with historical sites and great surfing beaches. Many tourists say that beaches here have rose colored sands while the cities retain the 16th-century romantic vibe it originally had.
The weather has a daily average temperature of 80℉ which is really hot but cooler temperatures can be experienced when you climb higher up the mountains. Nicaragua welcomed 1.2M visitors in 2013 which is twice more than Costa Rica. Many expats agree that Nicaragua offers the same things as Costa Rica but isis better because of how unspoiled the land is.
Real Estate is at it’s best since 2008, then prices slowly crept back up and then plummeted down once again after the unrest of 2018. Today, properties in the country are priced much cheaper than before which is why it is the best time to buy.
Should I Retire to Nicaragua? Weather
There are two seasons that governs the climate of this country. One is the dry season or verano as the local calls it and then there is the rainy season or invierno. A quick summary of the weather here is, it is either “hot and humid” or “hot and dry”. You can bet that you’ll have hot weather throughout the year with rainy months that offers respite from the dry climate.
Verano or Dry Season
This starts from mid-November and can last up to the end of May with May being the driest month. This turns the land into a dusty place where leaves turn yellow or fall. The lush green of the land transforms into a depressing yellow tinged world and the ocean water cools. This time can be very challenging for some especially those who have allergies because of how the wind stirs up the dust into the air.
Invierno or Wet Season
Typically, this is the favorite season of surfers because the waves are better. The swells come from the southern hemisphere during this season. You can literally watch the whole landscape change from dry to vibrant. Leaves on trees start to sprout and greenery comes back to life once more. This season kicks-off around mid-May and last until mid-November with October being the wettest month.
If you’re planning to visit this tropical place, the months November to January and July to August are the best time to go for you to enjoy Nicaragua without suffering the extremes of the seasons. The worst time to visit is during the months of October and May as this is when it is either too hot and dry or too rainy and wet.
Climate
This actually is divided into three zones depending on the temperature. Lowlands or the coastal regions (Pacific Coast and Caribbean Coast with Caribbean Coast experiencing more rain than the Pacific Coast.), central region and the North Mountain area.
Lowlands – Pacific Coast and Caribbean Coast
Temperatures in the lowlands range from 22℃ or 72℉ at night and 30℃ or 86℉ during the day. The Caribbean coast has an annual rainfall of 100 to 250 inches while the Pacific coast amounts to an average of 40 inches per year. During the hottest months of April to May, temperatures in this region can reach up to 38℃ or 100℉.
Central Region
In the central region where the capital Managua and also another famous city, Granada is located; temperatures drop about 5℃ or 9℉ lower. At night, you can experience a cooler temp of 17℃ or 63℉ and a warmer temp at 25℃ or 77℉ in the daytime.
North Mountain Area
In the northern mountain area of this country where the trending city of Matagalpa is located, temperatures drop to 10℃ or 18℉ more from the lowland areas. Nightimes are cooler here at 12℃ or 54℉ and daytimes are about 20℃ or 68℉, which can still be a bit hot for some but is way cooler than the coastal regions.
Should I Retire to Nicaragua? Cost Of Living
With tight budgeting and proper fund allocation, a couple can live in Nicaragua for as little as $1,200. A $1,500 budget can buy you a life of luxury in this place. Given that data, a suggested monthly budget of $1,300 for a couple per month would be a safe margin.
Back in 2015, Nicaragua rank number one in the cheapest place to live in International Living’s cost-of-living index. It is now a premier destination for Americans, Europeans, and Canadians as the retirement country of choice even if it is one of the poorest countries in Central America.
However, some items are 30% more expensive in this country than in Europe or the United States. Examples of these items are computers, cars, and household appliances. Gasoline is priced at $3.97 per gallon and utility bills can be as much as $75.61 for a 915 square foot apartment.
Check out my post on the Top Ten Places to Retire here for other places to consider.
Food Cost
Imported items are always expensive wherever you are and Nicaragua follows the same rule. A bottle of Nutella can cost $6 in this country when back in the US it is priced $3.50. So the best suggestion for you to save money would be to cut back on buying the imported items or go for the local version if there is one.
The best move would be to visit the mercado which is Spanish for market and buy local produce there. They are way cheaper than going to the supermarket and malls. And since supermarkets have already been mentioned here, there are three major groceries in this country namely, La Union, La Colonia, and Pali. La Colonia is locally owned and has the best reviews out of the three, Pali, on the other hand, is cheapest of the three but offers a limited selection of items while La Union is somewhere in between the two.
If you’re up for some dinner with friends, a single person’s complete meal can range from $5 up to $40 depending on the establishment and area you are visiting. Save some of your money by going for the locally brewed beers and stay clear of the wines because they are expensive here too.
Accommodation
Renting a property in this beautiful tropical country is a lot cheaper than in the United States. A one bedroom apartment in the city center costs about $269 per month and $198 outside the city center. A three bedroom apartment costs about $538 per month within the city center and $360 outside the city. These prices are a lot cheaper than a similar rental unit in the US which can cost thousands and thousands of dollars.
There are condo units in Granada designed just like the units in America for as low as $99,000. Foreigners go through the same sales process as local Nicaraguans do.
Household Help
Hiring household help in Nicaragua is one of the attractions of this country because of its affordability. A full-time help can range from $350 to $400 per month salary. A chauffeur costs $300 per month. You also can have on-call help to like your gardener which can cost just $15 per day or a language tutor that is $10 per hour.
Just like in any country, you will be providing meals and lodging if you employed a stay-in household help, lunch for the full-timers and also some form of a meal to others as a form of courtesy.
Should I Retire to Nicaragua? Internet And Infrastructure
This country still has a few unpaved roads that are hard to traverse or sometimes impassable during the rainy season. However, the major roads within the city are properly developed and well maintained. Owning a vehicle would mean that you will be driving on roads that are not cemented and has potholes that could wreak havoc on your suspension. Unless you own a vehicle that is designed for off-road performance you’d best get around the country through their buses. They are the cheapest way to travel within Nicaragua.
Buses going out of the country and into the neighboring places in Central America costs less than a dollar. There are two types of trips, the expreso which is faster due to fewer stops and then there is the ordinario. The old American school buses are what this country has refurbished and reconditioned to serve as their main bus transportation.
Major airlines such as American Airlines, Delta United and Avianca offer flights to Nicaragua. For a cheaper option, Spirit also has a flight to this country. Unfortunately for Canadians and Europeans, there are no direct flights to Nicaragua. They will have to get a connecting flight from the United States, Panama or Costa Rica.
The peculiar thing about flights here in Nicaragua is that it costs way more when you are getting flights out of the country than flights getting into the country. The major airline in Nicaragua is the Augusto Sandino International Airport which is located in the capital Managua. There are a couple of smaller ones and one that caters to domestic flights only.
Since this is a third world country, internet connection is rated low. There are two major telecommunication companies available, Claro and Movistar. A third one, Yota provides mobile internet access only via 4G technology. Claro offers ADSL connection with a 512kbps speed for $24 a month and $70 for 10mbps speed. Movistar, on the other hand, offers a USB modem for $5 per month for 500mb and $40 for 12GB data usage.
Should I Retire to Nicaragua? Is It Safe?
There are many speculations behind the safety of this country. It is mainly shrouded by the riots that happened last 2018. According to the UN, Nicaragua is the second safest country in Latin America.
The US, however, advised reconsidering any travel to this country because of civil unrest, crime, and limited healthcare options. Many expats that live there say otherwise. They agree that there is civil unrest but the people of Nicaragua pulled themselves together and stopped the looting and vandalizing of stores.
Healthcare is also not an issue according to them and crimes are common in the major cities but the predominant ones are non-violent like robbery and theft. There are many establishments that closed after the 2018 riots and you will see less tourist nowadays. But, it wouldn’t hurt if you go for a visit. It would actually do more good than harm if you do so. The homicide rate is still at a low of 11.49 per 100,000 people. So the decision to travel in Nicaragua is up to you.
Safety Tips While in Nicaragua
- Lock your car doors and keep your windows up when driving especially during stops and slow traffic.
- Use the minivan transports to avoid pickpockets that frequents the yellow bus.
- Avoid wearing expensive looking jewelry especially in crowded areas and keep your purse close to your body.
- Never leave valuables inside your car.
- Do not leave your home at night if you live alone. If you must then choosing a residential gated community will be your safest option.
- Check the license plate of a taxi if it is legible before hailing it. Make sure that it has red stripes across the bottom and top of the plate and request that the driver does not pick up other passengers. Agree on a price before boarding the vehicle.
- Don’t wander the streets of Nicaragua except for the main streets of tourist areas and malls.
If your considering visiting first (which of course you should) check in with my friends Jon and Jenelle who live in El Tansito, its is a beautiful place on the Pacific Coast. If you’re looking for a place to stay or just to stop and eat they own a guest house and restaurant for your visit. 5 Stars on Trip Advisor.
Check them out at casatodobueno.com
Who knows you may never leave, they didn’t!
Should I Retire to Nicaragua? Homes and Real Estate
This is a great time to consider the real estate of this country. Right now, prices are low and will continue to be low for a few more years due to the unrest back 2018. So before the price starts to creep back up, invest now if you can.
There are gated communities that offer great facilities with ocean views that can be bought or rented. Small and frugal looking houses can be bought for $30,000 up to $40,000 in Granda. Homes in San Juan del Sur with fantastic ocean views can be owned for less than $100,000. Home rentals with decent condition and size can be rented for about $300 per month. Colonial Style homes are a bit more expensive at about $150,000. Real Estate is at its best for would be buyers right now.
You do need to lawyer up before you can buy a property here so that you have someone who can help you in determining if the property you are looking for has a clean title. He will be the one to review the title deed and title history, check the status of tax payment for the property and conduct a survey of the area to check the property boundaries.
Your lawyer will also be the one to assist you in closing the deal, registering the property under your name and assessing the tax payment for the property.
Should I Retire to Nicaragua? Visa Process
If you are from America, Canada or Europe, all you need to bring with you to enter this country is your passport that is valid for at least six months and this will grant you a 90 days stay in this tropical land with rose-colored sands and gorgeous beaches. This is enough time for you to determine if this place is the place for you to retire. Staying long term is a different story altogether.
Pensionado Program
You have the option to get the pensionado program of this country designed to cater to foreign retirees. All you need is a monthly income or pension from your state not lower then $600 and an additional $150 for each dependent if you have any. You must be 45 years old and above to qualify for this program.
Rentista Program
There is another option, a program called rentista which is designed to cater to foreigners who have a private income and want to retire in the country. Again, you must be 45 years old and above to qualify for this program and your monthly income should not be lower than $1200 plus $150 for each dependent too.
Documents needed for Residency Application
The documents that you need to prepare for your residency request to be approved are your birth certificate, marriage certificate, police clearance, and passport. The last three should not be older than six months. These documents must be stamped in your country of origin first then translated and then stamped in Nicaragua before they can be considered as properly authenticated. It takes about four to six weeks of waiting time before all your documents are acquired and properly authorized.
Additional Fees
Since you will be waiting for a very long time before your residency in the country is approved, you must be ready to pay an additional fee for a temporary residence card. It can range from $60.57 up to $151.42, depending on the type and duration of the card. A fee of $15.14 for an additional 30 days extension for your visa will also be paid because your documents will not arrive on the 90 days of stay you are granted.
It is best to note that once your application is approved, you will be then given an identity card called cedula which will serve as your valid national ID in the country. Also, you will need to secure permission to leave the country once you are granted residency. A fee of $6.6 for the one-time exit, $12.11 valid for 3 months, $24.23 valid for 6 months and $48.46 valid for one year.
You can then enjoy the benefits of retiring in Nicaragua. No taxes for foreign remittances and income, you can import one vehicle amounting to $25,000 every four years without import tax and sales tax and a $20,000 worth of household good import allowance.
Should I Retire to Nicaragua? Healthcare
In major cities, hospitals and clinics are easily accessible but the farther from the city you get the fewer the medical facilities and clinics are. The lack of doctors, ample healthcare centers and modern medical equipment are some of the lacking elements when it comes to the outlying cities of Nicaragua.
This is the reason why most expats prefer to buy private healthcare. To be fair, emergency treatments are free in this country and you only have to shoulder the payment for the medicine and a private room is less than $100 per stay. Most Nicaraguan doctors train abroad (ex. United States, Germany, and Canada), which makes them more than competent to examine you. An appointment to a private doctor costs between $20 up to $40.
The Hospital Metropolitano Vivian Pellas located in the Nicaraguan capital Managua, opened in 2004, is the best hospital in Central America. Other major hospitals in this country are the Hospital Privado Salud Integral, Hospital Bautista, Military Hospital and the Private Hospital Cocibolca in Granada.
Healthcare costs are lower here in Nicaragua than in European countries and the United States. The most interesting part of the healthcare system is that doctors do a follow-up visit to your home. They literally visit you at home not like in other countries that require you to be the one to visit the clinic of your doctor for a follow-up check-up.
It is still advisable that you purchase international health insurance to help you cover other medical expenses. You can also look for local insurance provider if you don’t plan to use it outside Nicaragua.
Should I Retire to Nicaragua? People, Culture and Entertainment
People
People of this country is called Nicaraguans or Nicas for short. Many expats love how the people here are so friendly and welcoming to foreigners like them. They described Nicas to be happy people with smiles on their faces even if the poverty level of the country is high. Their love for their children and the children of others is very deep and is worth mentioning. The usual greeting of a Nica is a hug and kiss on the cheek which is very affectionate and heart-warming.
However, bribery and corruption is an integral part of the culture here. Most Nicas lack a sense of punctuality and are almost always late. There are cases when they even don’t show up. The “machismo” culture is also prevalent here and you will see this on how the males treat the women of this country. This culture is also the main reason why Nicaragua has the highest teen pregnancy rate in Latin America. Women who give birth below eighteen years of age reaches an astounding 28% of the women population.
Culture and Entertainment
To experience the real culture of this friendly country, you need to head to one of the mercados. The Mercado Viejo or old market in Masaya is a laid back market with low-key merchants that sell arts and crafts. This is a tourist friendly place and is a perfect destination for Sunday walks.
The Mercado in Matagalpa has a different vibe to it. It is a hustling, bustling market of different products that will assault all your senses which can either overwhelm you or stimulate you. This market is more commonly known as Mercado Roberto Humbes.
You can enjoy cultural events and evening performances at the Ruben Dario Theater in Managua. International and national dance, music, and performances are held here. The Casa de Los Tres Mundos in Granada also offers cultural event such as concerts, exhibitions, movies, and plays. This city holds a week-long poetry festival once a year.
Watch for the Semana Santa or Holy Easter Week performances to know how ingrained Christianity is in the culture of Nicaragua.
Attractions
Book a tour of the Somoto Canyon. Samoto is a fairly small but quaint mountain town situated in the Madriz department near the Honduras border. 4-hour long drive will be taken from the city to reach the canyon. From here you will head down and then you will be greeted by the birth region of Rio Coco which is the longest river in Central America. You will cross a river on foot and then cross another river with the use of rowing boats.
Once you reach the canyon entrance you will have the chance to ride the neumaticos or tires that they pull upstream with a rope and then turn you back around and let you float back down with the current while sitting on the tire. You see the rock formation on both sides of the canyon with a strip of blue sky right in the middle.
After the canyon tour, your Somoto Canyon tour package will include a visit to one of the many Rosquilla bakeries to watch how the delicacy is made and cooked. You then get to sample the freshly made batch right off the stone oven with a nice cup of coffee.
Visit the Tiscapa Historical Park where the small Augusto Sandino Museum can be seen. Here you will find some historical facts about the revolutionary past of this country. You can also tour the Hospital Metropolitano Vivian Pellas located in Managua to get an idea of how the healthcare system works in the area.
Head over to San Juan del Sur and enjoy the pink sand and warm beach of this region. You can watch how this once sleepy fishing village turned into a haven for surfers. You can also tour colonial houses in the Granada area. A visit to the Senderos del Amor located at Cascada Blanca will leave you in awe as you reach the end of the trail and watch the waterfall flow.
Matagalpa houses the San Jose church, which is very hard to miss and right across it is the Ruben Dario Park where you can sit down, relax and have a few conversations with your friends.
Should I Retire to Nicaragua? Overall
Nicaragua might be one of the poorest Latin American countries but this gem has more to show. Its bad reputation is something that many would have to learn to deal with to see the beauty that Nicaragua holds.
This colonial style country offers the world with wonderful beaches and real estate properties that are very affordable. Yes, there might be some civil unrest but it does not mean that you cannot visit the place. Ultimately, this country will pull through this obstacle and when they do, the whole world will see how beautiful the people of this place are, how exquisite the architecture of the homes are and how resilient this country is.
The choice to retire in this place is up to you. Prices of properties right now are at its best for would-be buyers. Healthcare is not as bad as many thinks and the cost of living is extremely low.
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