By Ian Wood - for Home:World

Imagine… waves crashing outside your beachfront home on the Pacific Ocean, managing a bed and breakfast on your own private island, or starting-up a business that offers canopy tours through the rain forest. It may sound like a dream life, but it's real, and it's really affordable.

Nicaragua is making every effort to draw retirees, entrepreneurs and foreigner investors of all sorts to its shores. Entrepreneurs are welcomed with a wide variety of incentives. Taxes on new businesses that promote tourism are greatly reduced or waived completely. Retirees pay no taxes on earnings made outside of the country and there are no duties to import household items or a car.

Tax breaks aren't the only savings. While the quality of life in Nicaragua is high, the cost of living is low. A meal in a nice restaurant may cost you less than $10-US per person, a night out in one of Managua's top night clubs is less than $20-US.

Why is it so affordable?

Nicaragua is the second poorest country in the western hemisphere. According to UNICEF, in 2001 per capita income in Nicaragua was just $420 per person, compared to a per capita income of $34,870 in the United States. In fact, may Nicaraguans prefer to make business transactions in U.S. dollars.

But is it a safe place to live?

Nicaragua has had a turbulent past. Dictators and communist regimes have tarnished this country's reputation, but that is history. Since 1990, Nicaragua has been holding democratic elections and control of the country has peacefully changed hands a number of times.

According to Interpol statistics from 2001, the crime rate in Nicaragua was just 1.8%. Compare that to the U.S. at 4.2, England at 9.9 and Germany at 7.7. The murder and suicide rates are also comparatively low.

A Diamond in the Rough

Many have said that Nicaragua is the next Costa Rica. While there is some truth to that comparison, Nicaragua is still a developing country. And the very things that make Nicaragua so enchanting to one person may make it undesirable to the next.

There are many first world amenities lacking here. Grocery stores have limited selections, top rate health care may be hard to find, police and fire departments may be far away and slower to react than you're used to. The roads are poor and some of the greatest pieces of land are virtually inaccessible. Water and power may cut out unexpectedly. Most Nicaraguans speak Spanish exclusively, if you don't, you'll have a hard time integrating yourself into the local community.

Nicaraguan Community

Nicaraguans are some of the friendliest people you are ever likely to meet. The lifestyle here is relaxed and social. A local would not hesitate to approach you on the sidewalk, introduce himself, ask your name, what brings you to Nicaragua, where you are from, about the weather, you favorite sports team and so on. When you're done chatting he may even invite you to have coffee with him.

It is this type of friendliness and sense of community that make Nicaragua so special. Yes, it is going to take some getting used to. Adjusting to life in a new country is always challenging, but in Nicaragua, it is exciting and may just change your life.

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