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Nicaragua, officially the Republic of Nicaragua, is a representative democratic republic and the largest nation in Central America. It is also the least densely populated with a demographic similar in size to its smaller neighbors. The country is bordered by Honduras to the north and by Costa Rica to the south. The Pacific Ocean lies to the west of the country, while the Caribbean Sea lies to the east. Falling within the tropics, Nicaraguasits 11 degrees north of the Equator, in the Northern Hemisphere. Nicaraguaoccupies a landmass of 129,494 km² - roughly the size of Greece or the state of New York. Close to 20% of the country's territory is designated as protected areas such as national parks, nature reserves and biological reserves. It is knownas the land of lakes and volcanoes. Nicaragua has three distinct geographicalregions: the Pacific Lowlands, the North-Central Mountains or highlands and theAtlantic Lowlands. Nicaragua has a population of 5,570,129; 69% mestizo, 17%white, 9% black and 5% amerindian. Spanish is spoken by about 90% of the country's population. Relative to its overall population, Nicaragua has never experienced any large scale wave of immigrants.

Nicaragua has widespread underemployment, one of the highest degrees of income inequality in the world, and the third lowest per capita income in the Western Hemisphere. The US-Central America Free Trade Agreement (CAFTA) has been in effect since April 2006 and has expanded exportopportunities for many agricultural and manufactured goods. Energy shortagesfueled by high oil prices, however, are a serious bottleneck to growth. Tourism in Nicaragua is currently the second largest industry in the nation, over thelast 7 years tourism has grown about 70% nationwide with rates of 10%-16% annually. Nicaragua has seen positive growth in the tourism sector over thelast decade and is expected to become the first largest industry in 2007. The increase and growth led to the income from tourism to rise more than 300% overa period of 10 years. The growth in tourism has also positively affected theagricultural, commercial, and finance industries, as well as the construction industry. Despite the positive growth throughout the last decade, Nicaragua remains the least visited nation in the region. The main attractions in Nicaragua for tourists are the beaches, scenic routes, the architecture ofcities such as León and Granada and most recently ecotourism and agritourism, particularly in Northern Nicaragua.

Foreigners can freely buy properties in Nicaragua, except for certain beachfront properties. Under the Maritime Zone Law, the first 200meters of land from high tide zone belongs to the state (but this land can usually be leaded on a 99-year lease, which is likely to be renewed). The first 50 meters are considered public terrain and cannot be developed. The next 150 meters can be developed privately through concessions from the municipalauthorities. Second homes are being snapped up by foreigners, mainly from the United States and Canada. However, real estate practice and the supporting institutions are still underdeveloped. Most purchases are cash transactions with the buyer and seller directly negotiating. However, the lack of clear title on some properties, both urban and rural, is a major consideration for investors. Buyers should exercise great care when purchasing. Because manyproperties were confiscated illegally in the 1980s, title may be unclear. Properties that have agrarian reform titles, or supplemental titles issued by court order, should be avoided. Beware - determining who exactly is the owner of a property can be very difficult. Even comprehensive title searches sometimes fail to reveal ownership uncertainties.

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