Residencia Temporal Pensionado

The Residencia Temporal Pensionado allows foreign nationals who receive a pension or retirement income from governments or institutions outside Nicaragua to reside in the country on a temporary basis. Originally established under Ley No. 694 (2009) as a permanent residence with significant fiscal benefits, the program was substantially reformed in November 2024 when Ley No. 1228 repealed Law 694 entirely. The category is now governed by Ley No. 761, as amended by Law 1228, and is administered by the Dirección General de Migración y Extranjería (DGME).

• Minimum age of 45 years
• Pension or retirement income of at least US$600 per month (may have increased to US$1,000/month under the reformed framework)
• Income must be demonstrable for at least five years
• Additional US$150 per month per dependant
• Valid passport with minimum 6 months validity
• Birth certificate (apostilled or authenticated)
• Criminal record certificate from country of origin (apostilled)
• Health certificate from a licensed physician confirming absence of contagious diseases
• Certification of pension income showing stability for at least 5 years
• All documents must be legally translated to Spanish and authenticated

Applications are submitted in person at the DGME main office in Managua. Prior to the November 2024 reform, applications were processed through the Instituto Nicaraguense de Turismo (INTUR), but this pathway was eliminated. Applicants are typically required to attend a brief interview with an immigration official. Processing takes approximately 2 to 8 months. Government fees are approximately US$200 plus US$500 per person.

Pensionado residents are prohibited from industrial, commercial, or public-sector employment. Exceptions are allowed for self-owned businesses (with minimum US$75,000 in registered property), authorized professional services, and teaching or scientific research at qualified institutions.

Under the previous Law 694, residents were required to reside in Nicaragua for a minimum of 6 months annually, either consecutively or alternating. Extended absences exceeding 6 months required written permission. Absence exceeding 1 year without justification could result in loss of residency status. Whether these same rules apply under the reformed framework has not been confirmed.

The residence is issued for 1 year and must be renewed annually. Renewal requires a renewal form, passport copy, residency card copy, health certificate, police record, and supporting documentation.

Spouse (including common-law partners with official certification of stable union), dependent children, and parents may be included. Each dependant adds US$150 per month to the income requirement and must provide the same core documentation.

Ley No. 1228 (November 2024) introduced major changes: Law 694 was repealed entirely, eliminating all fiscal benefits including customs exemptions on household goods, vehicles, and construction materials. Pensionado residence was reclassified from permanent to temporary. The former pathway from three consecutive years of temporary residence to permanent residence was eliminated. Requirements for Nicaraguan nationality were increased from 4 years to 7 years of permanent residence. These changes significantly reduced the program's competitiveness compared to similar programs in Costa Rica and Panama.

Following the repeal of Law 694, standard Nicaraguan tax rules apply. Nicaragua uses a territorial tax system where only Nicaraguan-source income is taxed. Foreign pension income is not subject to Nicaraguan tax. Tax residents (180+ days per year) must file annual returns even if all income is foreign-sourced.