If you are a Nicaraguan citizen earning income from the United States, investing in U.S. real estate, freelancing for American clients, or filing taxes jointly with a U.S. spouse, you may need an ITIN Number issued by the IRS.

Currently, Nicaragua does not have a tax treaty with the United States. This means U.S.-sourced income for Nicaraguan residents is usually taxed at the default 30% withholding rate. While an ITIN cannot reduce that rate by itself, it is still essential for:

  • Filing U.S. tax returns

  • Claiming refunds for overpaid taxes

  • Reclaiming excess FIRPTA withholding on property sales

  • Being listed on a U.S. spouse’s or dependent’s return

  • Staying fully compliant with IRS rules

At House of Bookkeepers, an IRS-Certified Acceptance Agent (CAA), we help applicants in Nicaragua apply for ITINs safely and quickly — without sending passports overseas.

What Is an ITIN?

An ITIN is a nine-digit tax processing number (format: 9XX-XX-XXXX) issued by the IRS to individuals who:

  • Need to file or report U.S. taxes

  • Are not eligible for a U.S. Social Security Number (SSN)

🚫 What an ITIN is not:

  • It is not a U.S. work permit

  • It is not immigration status

  • It is not a replacement for an SSN

Who Commonly Needs an ITIN?

  • Nonresident aliens with U.S.-sourced income

  • Real estate investors subject to FIRPTA when selling U.S. property

  • Spouses and dependents of U.S. taxpayers

  • International students or researchers receiving U.S. scholarships

  • Freelancers, digital workers, and Amazon sellers working with U.S. companies

  • Responsible parties of U.S. LLCs

Who in Nicaragua Should Apply for an ITIN?

Here are the most common situations where Nicaraguan citizens apply for ITINs:

  • Freelancers and Digital Workers
    Nicaraguans working with U.S. clients or platforms like Upwork, Fiverr, PayPal, Stripe, Amazon, or AdSense face 30% withholding without an ITIN. With one, you can file taxes and request refunds.

  • Property Investors
    Selling U.S. property triggers FIRPTA (Foreign Investment in Real Property Tax Act), which withholds 15% of the gross sale price. An ITIN is required to file a tax return and reclaim excess withholding.

  • Filing Jointly with a U.S. Spouse
    If your spouse is a U.S. taxpayer, you need an ITIN to be included on their return and qualify for spousal tax benefits.

  • Investors in U.S. Companies
    Without a tax treaty, dividends and other income for Nicaraguans are withheld at 30%. An ITIN ensures you can properly report and potentially reclaim excess tax.

  • Responsible Party for a U.S. LLC
    If you manage a U.S. LLC, the IRS may require you to have an ITIN. Usually, you’ll need to provide:

    • Articles of Organization

    • Operating Agreement

    • IRS EIN Confirmation Letter (CP 575 Notice)

Benefits of Having an ITIN

  • File U.S. taxes legally and avoid penalties

  • Claim refunds for overpaid withholding taxes

  • Reclaim FIRPTA withholding on real estate sales

  • Be listed on a spouse’s or dependent’s return

  • Build financial credibility with U.S. banks, payment processors, and institutions (especially when paired with an EIN/LLC)

  • Keep your U.S. income fully IRS-compliant

Step-by-Step: How to Apply for an ITIN from Nicaragua in 2025

Step 1: Confirm Eligibility

You need a valid U.S. tax reason such as:

  • Filing a U.S. return for income or investments

  • Selling or renting U.S. property

  • Filing jointly with a U.S. spouse

  • Being listed as a dependent on a U.S. return

Step 2: Complete Form W-7

This is the IRS application form for ITINs. Accuracy is essential — small mistakes often lead to rejection.

Step 3: Gather Required Documents

  • Valid passport (scan copy works if applying with a CAA; otherwise, IRS requires original or certified copy)

  • U.S. federal tax return (Form 1040 or 1040-NR), unless you qualify for an exception

  • Supporting documents (visa, U.S. income statements, property contracts, scholarship letters, etc.)

Step 4: Apply Through a Certified Acceptance Agent (CAA)

With House of Bookkeepers, you don’t need to mail your passport. We verify documents locally in Nicaragua and handle the application directly with the IRS.

ITIN Processing Timeline in 2025

  • Standard processing: 8–11 weeks

  • Peak filing season (Jan–Apr): up to 13–16 weeks

  • At HOB, we can often retrieve your ITIN number within ~2.5 months by contacting the IRS directly

    • Note: The official IRS Letter CP565 will still take the full processing time to arrive by mail

Why Use House of Bookkeepers (IRS CAA)?

✅ Passport stays safe — verified locally in Nicaragua

✅ Higher approval rates, fewer rejections

✅ End-to-end service: W-7 form, COA, tax return, and submission

✅ Official IRS authorization (listed CAA)

✅ Real-time updates until your ITIN approval letter arrives

✅ 100% Money-Back Guarantee if your application is rejected due to our process error

Common Mistakes to Avoid

  • Submitting incomplete or inaccurate Form W-7

  • Using uncertified passport copies (if not applying through a CAA)

  • Forgetting to attach a tax return (unless exempt)

  • Mailing important documents through unreliable couriers

  • Assuming ITIN provides immigration or work rights (it does not)

Quick FAQs – ITIN from Nicaragua

Q1. Can I apply for an ITIN from Nicaragua?
Yes. With House of Bookkeepers as your IRS CAA, you don’t need to travel or send your passport abroad.

Q2. Does Nicaragua have a tax treaty with the U.S.?
No. Nicaragua does not currently have a tax treaty with the U.S. This means the default 30% withholding applies, making ITINs even more important for refunds and compliance.

Q3. How long does it take to get an ITIN?
8–13 weeks on average. At HOB, we can often retrieve your number within ~2.5 months, but the official CP565 letter will still take the full processing time.

Q4. Do I need a U.S. address?
A U.S. address is not mandatory. The IRS can send your ITIN letter directly to your foreign (non-U.S.) address as listed on your application. However, if you have a U.S. residential address or a mail forwarding service, you may use it for convenience and faster delivery.

Alternatively, we can also receive the letter at our address and send you a scanned copy by email.

Q5. How will you verify my identity?
As part of the IRS verification process, we’ll ask you to provide a selfie of yourself holding the passport’s information page. This simple step confirms that the passport belongs to you and helps us complete your identity verification securely.

Apply with Confidence

At House of Bookkeepers, we make ITIN applications safe, simple, and stress-free for Nicaraguan applicants.

📍 IRS-Certified Acceptance Agent (CAA) – Nicaragua Service
🌍 Website: https://www.houseofbookkeepers.com

Apply today — and protect your U.S. income, refunds, and compliance with expert support.