In November 2024, a major reform to the General Law on Migration and Foreigners (Law No. 761) came into force through Law No. 1228, published on November 29, 2024, in La Gaceta, Official Gazette No. 222. This reform introduced significant changes to the way in which immigration categories are regulated in Nicaragua, particularly with regard to permanent residence and the requirements for obtaining Nicaraguan nationality.
Below, we outline what we consider to be the main adjustments that could be relevant for those currently residing in the country or considering settling in Nicaragua:
I- Ways to obtain permanent residence
One of the most significant changes is the elimination of some ways to obtain permanent residence, which is valid for up to five years. In particular:
- Residence for pensioners and rentiers is no longer considered permanent residence.
- It is no longer possible to apply for permanent residence on the basis of having held temporary residence for three consecutive years: This was the most common mechanism for obtaining permanent residence in Nicaragua, mainly for foreigners who were hired by transnational companies that moved to Nicaragua to carry out their duties within a local subsidiary or branch and ended up residing in the country for many years. This change represents a significant change both for temporary residents who were close to meeting the minimum time requirement and for those foreigners who, in the future, wish to settle in Nicaragua on a more permanent basis.
In practical terms, this means that many foreigners who previously qualified for permanent residence will have to opt for other categories or remain under a renewable temporary status, even if this entails submitting their personal and company documents annually, as well as more frequent visits to the immigration authorities.
II- New conditions for pensioners and rentiers
With the reform, foreigners who are pensioners or rentiers are no longer included in the permanent residence categories. Instead, they are only eligible for temporary residence, without the benefits and durability previously offered by permanent status.
This change, which will take effect with the reform in November 2024, is also motivated by the repeal of Law No. 694, a special law that regulated permanent residents and pensioners, as well as all the immigration and tax benefits that applied to this special category of foreigners.
III- Changes to the grounds for applying for Nicaraguan nationality
The reform has also changed the grounds for applying for Nicaraguan nationality. Mainly, the possibility of applying for nationality for foreigners who can prove that they have been permanent residents for four years (for foreigners from CA-4 and Spaniards, only two years were required) has been modified, and now foreigners must prove a minimum of seven years as permanent residents without special benefits for foreigners of other nationalities. This is one of the most common mechanisms by which foreigners applied for nationality, without prejudice to compliance with all the requirements that this entails.
This change, coupled with the fact that the grounds for obtaining permanent residence have also been modified, means that the number of people who could qualify under this ground is lower and will even decrease over time.
IV- Final considerations
The recent adjustments reflect a new immigration structure that prioritizes temporary residence and, in turn, reduces the grounds for obtaining Nicaraguan nationality. For foreigners already residing in Nicaragua, or those considering doing so, it is essential to be aware of these changes and understand how they could impact their plans in the future.
You can access the complete reform by clicking HERE.