What is the Real Estate Tax?

Decree No. 3-95, Property Tax (IBI).

It is the payment corresponding to the Real Estate Tax (IBI) of all real estate properties located in the territorial district of the municipality where the property is located. It is understood as real estate: land and fixed constructions, stable or permanent plantations (coffee, cane, for example), constructions and fixed installations and fixed machinery.



IBI declaration format C $ 5.00. The IBI rate corresponds to 1% on the tax base (80% of the municipal cadastral appraisal).

When should the IBI be paid?

The payment of the IBI can be canceled in two equal installments of 50%. The first 50% quota in January, March or April, and the remaining 50% no later than June 30 of each year.

Taxpayers who pay the IBI in a single payment, during the first quarter of the year, are entitled to a 10% discount of the tax payable.

If the payment of the IBI is not made during the period from January to June, a fine of 10% on the value to be paid as of July 1 is acquired.

Exemption for retirees

If you are retired, you must present the retirement card and your photocopy, plus the letter from the INSS that says from what date you enjoy the retirement benefit, in order to be entitled to the exemption per room house. If the retiree owns more than two properties, the exemption applies to the property where he lives, having to pay the tax on the other properties. In the case of Managua, this procedure cannot be carried out in the districts, but must be done in the Central City Hall (central ALMA).

Where should I pay the IBI?

If the taxpayer owns several properties in the same municipality, he must present them in a single declaration. If the properties are located in different municipalities, you must declare the corresponding part in each municipality. Likewise, if the real property is located in two or more municipalities, the taxpayer must pay the corresponding part of the tax in each of them.

Author: Nilson Mercado Centeno

Please contact us to provide additional information.

Write Us Call (+505) 2266-8728

© 2020 Bendaña & Bendaña – All rights Reserved

Translate »