In order to promote investment in manufacturing, Nicaragua has created a free zone law with many benefits. Some of the more important ones being
1. Total tax exemption on income and property taxes.
2. Total exemption on municipal taxes.
3. Total exemption on taxes for machinery, equipment and raw material, and on transport and support services for the Free Trade Zones.
4. Total tax exemption on value added tax.
5. All permits can be obtained in less than six weeks.
According to the rules of the World Trade Organization (WTO), Nicaragua will be one of the few countries able to offer fiscal incentives granted to exporters by the free trade zone laws after 2008.