Expense management module › Global expense management › Nicaragua
Last updated : 11.05.2026
Expense rules in Nicaragua.
Nicaragua applies VAT (IVA) at 15%. E-invoice mandatory for large taxpayers.
Get started →Disclaimer: This country guide is provided for informational purposes only and does not constitute legal advice. Although we update it regularly, it may not reflect ongoing regulatory changes. Illizeo SA declines all responsibility for actions taken or not taken based on this content.
1Expense rules & reclaimable VAT
IVA 15% single rate.
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Meals | 15% | Deductible | Invoice + RUC |
| Lodging | 15% | Deductible | RUC |
| Alcohol | 15% | Limited | Excluded |
| Fuel | 15% | Deductible | Invoice |
| Transport | 15% | Deductible | Taxi/airfare |
| Gifts | 15% | Non-deductible | Cap |
Receipt
Invoice
RUC mandatory
SourcesNicaragua Tax Authority
2Mileage allowance
Actual.
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | – | Fuel | Invoice |
| Company car | – | Card | – |
| Taxi | – | 100% receipt | Invoice |
Tracking
Logbook
Date, distance
SourcesNicaragua Tax Authority
3Per diem and travel allowances
Company policy.
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Managua | NIO 150 | NIO 550 | NIO 1 000 |
| Leon | NIO 130 | NIO 450 | NIO 800 |
| Granada | NIO 130 | NIO 460 | NIO 820 |
| Other | NIO 100 | NIO 380 | NIO 650 |
Conversion
~1 EUR = 40 NIO
Variable
SourcesNicaragua Tax Authority
4Foreign VAT recovery
Residents only.
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Resident | IVA credit | Monthly | Return |
| Non-resident | None | – | Final cost |
| Free Zone | Incentives | Per licence | Regime |
Limitations
4 years
Keep
SourcesNicaragua Tax Authority
Centralize your Nicaragua expenses
Illizeo handles invoices, NIO/EUR conversion and IVA compliance for your teams in Nicaragua.
Book a demo