Analysis of Law No. 1240 on Foreign Investment in Nicaragua, its Regulation (Decree A.N. No. 8902), and the Practical Impact of Mandatory Registration.
Analysis of Law No. 1240 on Foreign Investment in Nicaragua, its Regulation (Decree A.N. No. 8902), and the Practical Impact of Mandatory Registration. The recent enactment of Law No. 1240 on Foreign Investment, published in La Gaceta on February 24, 2025, together with its Regulation (Decree A.N. No. 8902), represents a significant development in Nicaragua’s legal framework governing foreign investment. This new legal regime not only modernizes prior regulations but also introduces specific obligations that directly affect foreign investors, particularly in relation to the registration and formalization of their investments. Scope and Purpose of Law No. 1240 Law No. 1240 aims to promote, facilitate, and regulate foreign investment in Nicaragua by establishing a clear legal framework designed to provide legal certainty and encourage economic development. The law broadly defines foreign investment as any transfer of foreign capital into the country, including tangible and intangibl...