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The One Reason Nicaragua Is Failing as a Retirement Destination

Article Summary:

Even though Nicaragua has favorable retirement laws, its newly enacted Promotion Act, aimed at luring baby boomers to its shores, has largely failed. Government figures show that between 2007 and 2012 only 350 residents have applied under this law, less than the amount expected.

Photo Credit: Flickr

Original Article Text From La Prensa Nicaragu via Google Translate :

Hunting of Rentiers in “diapers”

Nicaragua has one of the climates and most beautiful natural environments in Central America. The land is cheaper compared to the rest of the region. Also the cost of living is more affordable, particularly in terms of food and clothing. The country is in the center of the isthmus, which makes connecting with nations both north and south of the isthmus. But all these advantages have not been enough to attract outside a larger number of pensioners and retirees.

Official figures confirm that Nicaragua is still in “diapers” about the arrival of such resident, a business that is booming in Costa Rica, whose main attraction is having the fourth most prestigious healthcare system in Latin America. This condition, according to the president of the Nicaraguan Chamber of Small and Medium Business Tourism (Cantur), Leonardo Torres, is key for retirees, because they are mostly elderly people with chronic diseases. And not to be in the United States, for example, because the cost of medical care is high, then looking abroad more accessible systems.

And although Nicaragua has made an effort for a couple of decades, to create the conditions sought by rentiers and pensioners, the results have been poor. According to official figures, between 2007 and 2012 the country has been able to attract only 350 residents of this type. This country has guaranteed annual income in excess of seven million dollars, contributed mainly by pensioners (298).

In the period described above, are only 52 rentiers, ie foreigner who takes the Nicaraguan residence fixed incomes from abroad.

Until a law giving endless benefits to this type of living is Nicaragua, but, according to Torres, not promoted abroad, mainly in the Nicaraguan consulates. Neither in the international tourism fairs where national delegations participating included in bid packages for retirees and annuitants. It is one of the many laws that exist in the country just to be on paper.

This is the Law for Promotion of resident income pensioners and annuitants residents, Act 694, adopted on June 18, 2009. This was published in La Gaceta No. 151 on August 12, 2009.

This law is considered as annuitants to those citizens with minimum income of $ 750 per month and who wish to reside permanently in Nicaragua. For pensioners the income must be at or above $ 600, respectively.

In Nicaragua and retired annuitants are coming mainly from the United States, France, Spain, Italy, and Nicaraguan nationalities of other countries.

But what should proceed Nicaragua to attract these residents? In the words of Torres, although the country has an excellent natural environment inside the country should move forward in a greater investment in electrification, improved roads and above all improve the quality of the medical system.

“The elderly require a higher level of care, and we must recognize that in this area there is a big limitation. But we can compensate with other things, such as the cost of living is very low in Nicaragua and we have a high degree of public safety to the rest of the region, “he emphasizes.

In fact, according to the latest ranking of Travel & Tourism World Economic Forum, Nicaragua is the second country in Central America where travelers feel safer and more secure, second only to Costa Rica.

Some efforts
And while Torres expects from the Government sold to Nicaragua as a good destination for retirees and annuitants, and private enterprise is making some efforts. In the Pacific there are already projects sales of houses and land for these residents. One is Gran Pacifica, which plans in the coming years raising several condominiums and villas in this area of ​​the country, which may be purchased by pensioners and annuitants.

Link to Original Article:

From La Prensa Nicaragua

  • Michus Stratus

    The credibility of this article suffers from very poor use of grammar Either English is not the author’s first language or he/she is uneducated. It is too bad because the article offers very low level validation of the premise.

  • David

    I can handle the bumps in the grammar, hey my Spanish would probably be worse. But the article does not say WHY Nicaragua, despite its efforts and favorable programs, is failing to attract more people on retirement income. Surely there must be more than 1000 candidates who are generally getting old but who don’t have chronic diseases (and thus have to go to Costa Rica.)

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