In 1991, promulgating the decree No.46-91 published in the Official Gazette No.221 of 21 November 1991 formalized the creation of the Free Trade Zone System, regulated by Decree No.31-92 published in the Gazette no.112 of June 12, 1992, with subsequent reforms by Decrees No.18-1998, Decree No.21-2003 and Decree 50-2005.
The purpose of this Act and its regulations was to create a legal framework that would include elements concerning the organization, management, incentives, rights and obligations of operators and users. Pursuing further the establishment of new zones and thus the arrival of new companies that would allow users to integrate these with the rest of the national economy. This allowed the reactivation of the Free Trade Zone System, creating the National Commission of Free Zones as regulator and the Free Zones Corporation, as operator to manage the zones owned.
At present this system is the most dynamic sector of the national economy, according to figures from the Central Bank of Nicaragua, holding average annual growth rate of 17.6% over the past five years.
Faced with the challenges of globalization, the Free Zone Regime Nicaragua suits the circumstances and the Government of Unity and National Reconciliation, the private sector join forces so that it remains an important player in the economy. Notably, the establishment by the state, stable and clear policies, simple controls and regulations, has been instrumental in the response of the industrial sector, both domestic and foreign, to the progressive increase in investment.
The Free Trade Zone System of Nicaragua is one of the most competitive and fastest growing in Central America and the Caribbean Basin. It has proved an effective and profitable operation for foreign and domestic firms, mainly because of its proximity to major markets, United States and South America, on the political, economic and social development. Sector represents a great impact on the process of insertion of the Nicaraguan economy in the international market.
Allows local and foreign companies can establish their operations and benefit from tax incentives and facilities granted by the operating system.
The Zone has become a major economic player and a cornerstone of national development, creating an important basis for formal employment, representing approximately 25% of the contributors to the Social Security of the country. Industrial parks and businesses that have been established throughout the national territory, have a significant impact on the economic and social realities of their respective localities.