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How to Difficult is it to Register Your Vehicle in Nicaragua?
The law in Nicaragua says you have 60 days after purchasing a vehicle to register it in your name. But to accomplish this you need to be a resident or a citizen of Nicaragua.
Before we became Nicaraguan residents we were not able to register our vehicles in our own name. To get around this law we had our vehicles registered in our lawyer’s name. Like us, many foreigners living in Nicaragua need a vehicle and have found ways to make the system work for them.
Elisha and I received our residency in 2019 and soon after I went through the process of obtaining a Nicaraguan driver’s licence. The next thing on our to do list was to register our vehicles. There are a few steps to take to do this, so I’ll walk you through.
NOTE: Whether you are buying a new or used vehicle the steps are the same.
The Vehicle Registration Process
Step 1: Get Your Escritura
An escritura is a legal ownership document similar to what you receive when buying property in Nicaragua. I went to my lawyer and had him “sell” me my moto and write me an escritura.
If you are buying a used vehicle from someone privately you both need to visit a lawyer’s office and obtain an escritura. If you are buying a new vehicle the dealership will provide you with the documents needed to do this.
Step 2: DGI Tax Assessment
When buying a used vehicle there is a transfer tax of 1% of the vehicle’s assessed value. Have your lawyer complete the online paperwork for DGI to pay the transfer tax. Your lawyer can print the form from the DGI website and you will pay the tax at the bank (see step 6). If you are buying a new vehicle the dealer will include all taxes in the purchase price.
Step 3: Pay Your City Road Tax
Take your escritura, transit card and cedula (residency card) and go to the Alcaldía in the city where you live. Obtain a new sticker for rodamiento (city road tax) in your name. Keep the sticker and the receipt for step 8.
In San Juan del Sur motorcycle tax is 50 córdobas ($1.38 USD) per year and vehicles are 100 córdobas ($2.75 USD) per year.
Step 4: Get an Insurance Policy
If your vehicle insurance is in the name of the person your vehicle is registered to this step is still important. Take your escritura, transit card and cedula to an insurance office and get insurance in your own name. Obligatory yearly insurance for a moto is $35 USD. For a car, truck or SUV the cost is $55 USD per year.
Step 5: Get Your Safety Inspection & Emissions Test Done
Note: If you are registering a motorcycle you can skip this step.
Aside from motorcycles, all other vehicles need to have a current safety inspection and emissions test certification in your name. In most cities both tests can be done in the same location and can be completed in about 30 minutes. The cost for the two tests is approximately 600 córdobas ($16.53 USD).
Step 6: Pay Registration Fees & Taxes at a BanPro Bank
You need to pay for a placa, matricula and circulation at a BanPro bank (as this is the only bank the police have accounts with). The teller at the bank will be aware of what you need for registration.
You can also pay your DGI transfer tax here. The total cost is approximately 550 córdobas ($13.77 USD) plus your DGI tax. Keep all of your receipts because you need them for step 8.
Step 7: Go to the Police Station
You need to go to the police station in the capital city of the department (state) you live in. The team of yellow shirt ladies at the entrance are there to help you with anything you need. Let them know you want to register a vehicle and they will direct you to the inspection station.
The process in the police station can be confusing, but just keep asking where to go next. Be calm, friendly and patient and this will be returned to you in kind.
Step 8: Submit Your Paperwork & Get Your Vehicle Inspected
At the inspection station the officer will go through all of your documents. If you don’t have everything you need they will send you on your way.
You need all receipts from step 6, plus the following:
- Your original cedula
- Photocopy of your cedula
- Current registration card
- Insurance paperwork (not just your insurance card)
- Escritura
- Receipt for your rodamiento.
You also need your safety inspection and emission test documents from step 5; unless you are registering a motorcycle.
If you are transferring the vehicle to a different department (state) you will need to remove and provide the license plate. If everything is in order the officer will instruct you to bring your vehicle into the inspection station. They will match the numbers on the motor and chassis to make sure the vehicle matches the registration documents. If this checks out you move to step 9.
Step 9: Get Your Documents Stamped at the Transit Police Office
Your documents move inside to the office for registration. The boss goes over all of the paperwork to see if they are satisfied you have met all of the requirements. If they give the nod you and your paperwork go back to the yellow shirt team.
Step 10: Go From Analog to Digital
The yellow shirt service staff transfers your paper information to digital and print your registration card. My friend Candy helped me through getting my driver’s licence and was just as helpful with my registration.
Step 11: Wait For Your Paperwork & One More Stamp of Approval
Once your card is printed your paperwork goes to be verified and signed by an official in the transit department. If they are satisfied they will return your signed paperwork.
Step 12: Celebrate & Show Off Your New Acquisition
Once you have your signed paperwork back in hand you can go back to the registration office where your shiny new transit card and licence plate will be ready for you.
Why 12 Steps?
I am not sure why getting your Nicaraguan driver’s licence, registering a vehicle and getting sober are all a twelve step process. If it seems like a lot of work, well it kind of is.
Is there a lot of waiting around? Well, yes. The police station has waiting rooms 1, 2 and 3 for a reason.
I started the process in San Juan del Sur around 11 am and had my transit card in Rivas by about 4 pm the same day. While I didn’t break any records for speed, if you can manage to get a vehicle registered in one day consider it a win!