Nicaragua Expat Forum

Can RENTISTA's own a business? Can work in their own business?

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sndzex

1/13/2011 22:49 EST

Howdy.

I think that the Rentista program is run by the Tourism Investment agency. I would like to work there in my own English Language school.
Some say Rentista's can't work for someone else. Some say that they can't own a business. Some say that they can own a business, but can't work in it--only supervise.

I would think that a Rentista Program run by the Tourism Department would strongly encourage Tourism-benefitting businesses, such as English schools.

What's the law? And what is the actual practice--i.e., what is done in the REAL world there, law or no law?

Thanks much.

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bushamy13

1/14/2011 10:41 EST

You do not have to be a resident of Nicaragua to work here or to own a business. Having said that, the official rule is that Nicas should be hired first and expats only if they have unique skills that a local does not have. This is often the case. The expat owner is not considered an employee.

This is a loosey-goosey country with rules being interpreted by whomever you talk to. Here in Granada many of the tourist businesses, restaurants and bars are owned by expats that then hire expats and locals. Most of the expats work on a contract basis so that they do not have to pay the social security and other benefit amounts to the government. In fact, Nica government is rarely aware of the employment of the expat. The payment and benefits payment of the locals are strictly regulated to protect the worker.

There are many English schools in Nicaragua especially in Managua and Granada. The cost is very low since the people are poor. For example, one of the larger ones here in Granada is $12 per month for one hour a day 5 days a week. In Managua they cater more to the wealthier Nicas so the costs are much higher.

So...... no problem starting the English language business using locals to teach, expat employees should be on contract but if you also teach, that may be subject to interpretation.

Hope this helps.

Darrell

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sndzex

1/15/2011 17:01 EST

VERY informative, Darrell.
I knew a fellow some years ago in Puntarenas, CR, who owned a hotelito. One of his employees (bartender) didn't show up that day, and the owner said that he himself could not serve drinks since some other neighbor or other disgruntled employee could report him to the authorities, and he said that would be "big trouble" for him. He said that CR was ok with him owning a business, but he could do nothing more than supervise.
Thanks much, Darrell!

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