On Tuesday, August 16, 2016, the Executive Decree N° 12-2016 "Regulation to the Law N° 917 Law of Free Trade Zones for Export", was published in the Gazette, Official Journal.

The referred regulation surged as a result from the modernization process of the legal system that Nicaragua has been experiencing in the recent years. Such regulation works as a complement to Law No. 917 "Law on Free Trade Zones for Export", which entered into force on October 16, 2015 and to repeal the previous regulation (Decree No.50-2015).

Among the subjects addressed by this new regulation, let us refer to the renovated incorporation process for a new free trade zone before the Free Trade Zones National Commission, the possibility of extend the exemption period for the payment of the Income Tax for an identical term (15 and 10 years for the Operating and Tenant companies respectively), the export of goods produced by the free trade zone to the Nicaraguan ground, subcontracting, customs and labor regime and also the signing of foreign personnel, among other elements.

We invite all of the companies that operated under the free trade zone regime, as well as any interested investment group, to get updated about the effects that these new regulations will have in their operation, for which they have CENTRAL LAW LAW Nicaragua an ally. Likewise, let us remember that Nicaragua has signed many trade agreements with parties like USA, EU, Mexico, Chile, Taiwan, among others agreements.

CENTRAL LAW Nicaragua has a professional staff recognized by the Free Trade Zones National Commission, as well as the necessary experience in order to provide full legal advice at Free Trade Zones.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.