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What you need to know about expropriations in Nicaragua

Andrés Cuadra (Nicaragua

According to Nicaraguan law, any private property good or right, regardless of the person or entity they belong to, may be subject to forced expropriation due to public interest or social interest. To specify, public interest should be understood as works, services or programs that tend to provide the entire country or a part of it, with rights, improvements or more social interest benefits. 

Commonly, the expropriations that have been executed in Nicaragua are related to infrastructure works such as road construction and expansion; construction of power generation projects, including the installation of transmission lines; construction of aqueducts; etc. To be able to expropriate a certain good, the project of which said good will be part of must have been declared of public interest by the relevant authority.

In an expropriation process, the owner of the goods or properties to be expropriated only has the right to argue whether or not the goods or properties are indispensable to the project they are to be expropriated for and about the compensation amount that must payed. So, it is very important for anyone interested in investing in Nicaragua to get good advice and information regarding the various work plans from the relevant government authorities. Knowing about these work plans can avoid a potential negative impact on an investment, or even enhance its value in the future, the same way a construction of a road or power lines next to a property brings its value up.