Nicaragua

In Nicaragua, cryptocurrencies are legally classified as intangible assets, similar to stocks or bonds, rather than as legal tender or currency. While crypto assets are legal, Nicaragua does not have a dedicated tax framework for them. Instead, general tax laws apply. The country operates on a territorial tax system, meaning only income sourced within Nicaragua is subject to taxation. The Dirección General de Ingresos (DGI) is the primary tax authority responsible for administering cryptocurrency taxation. This is done under the existing legal framework, which includes the Tax Code of Nicaragua (Ley de Concertación Tributaria), the General Tax Law (Ley General Tributaria), and guidelines provided in Resolution No. DGA-001-2022. Individual income generated within Nicaragua, including certain crypto-related activities, is subject to progressive income tax rates ranging from 0% to 30%. Gains derived from the sale or exchange of cryptocurrencies are uniformly taxed at a flat capital gains rate of 15%. This 15% rate applies regardless of how long the crypto asset was held, as there are no distinctions between short-term and long-term gains. When cryptocurrencies are used to purchase goods or services, a 15% Value Added Tax (VAT) may apply. Converting crypto to fiat currency is also considered a taxable event, with any resulting gains subject to the 15% capital gains tax. There are no specified exemption thresholds for capital gains. Staking and mining rewards are considered ordinary income and are taxed at the progressive rates of 0-30% upon receipt. Activities within Decentralized Finance (DeFi) platforms, such as yield farming or liquidity provision, and the sale of Non-Fungible Tokens (NFTs), are generally taxed under these existing income or capital gains rules. NFTs are treated as intangible assets, and their sales are subject to the 15% capital gains tax. Furthermore, exchanging one cryptocurrency for another is treated as a taxable sale, triggering the 15% capital gains tax on any realized gains.