You should expect to pay approximately 4% of the purchase price in closing costs. The exact amount will depend on what is negotiated in the purchase and sale agreement and will depend on where the property is located in Nicaragua. An approximate summary of typical closing costs for a Nicaragua real estate transaction is as follows:

a. Land Transfer Tax (1% of purchase price or cadastral value which ever is higher)

b. IMI Tax (1% of purchase price or cadastral value which ever is higher)
Please note: IMI tax is a municipal revenue tax and is really the responsibility of the seller, however, the responsibility of the IMI tax is typically negotiated between the buyer and seller. The IMI tax is currently only charged in certain municipalities (i.e. San Juan del Sur)

c. Lawyers fees are generally 1% of the purchase price (typically with a minimum of $500). This fee percentage is negotiable for larger purchases (ie. over $200K).

d. Title Registration Taxes and Fees. These costs are generally 1% for purchases under $100K, and otherwise vary.