The regime of Daniel Ortega stripped nine American retirees of their luxury homes in Gavilán beach, located in the municipality of Tola, Rivas department, at the end of August, and transferred them to the Nicaraguan Institute of Social Security (INSS), according to an investigation by Confidencial.
The total losses—construction, improvements, and personal belongings that were inside—were estimated by the owners at 15 million dollars.
The mechanism used is the same that the dictatorship has systematically employed against opponents and former political prisoners in Nicaragua: the Attorney General's Office (PGJ) confiscates the property without notification or transparent legal process and then "donates" it to the INSS.
This case marks a milestone: it is the first known time that this formula is applied to foreign citizens, specifically Americans.
The retirees arrived in Nicaragua in the 2000s and completed the construction of their houses in 2010, protected by Law 690 for the Development of Coastal Zones, which allows individuals to own the structures even if the land is owned by the State.
For more than 15 years, they paid an annual fee of $1,000 to the Tola Municipality—managed by the Sandinista Front—plus the Property Tax, under renewable lease agreements.
In 2026, the mayor's office unilaterally canceled those contracts without prior notice.
"We had been living in peace for over 15 years, paying the Property Tax annually to the Tola Mayor's Office and our lease, which was renewable. Out of nowhere, they canceled this year's lease and took our homes," stated one of the affected individuals.
On the day of the confiscation, men identifying themselves as "INSS officials" arrived at the properties and ordered the guards to leave because the houses had "been transferred to the institution."
The owners found out through their own employees; when they consulted with the Police and the Mayor's Office of Tola, they were informed that the properties already belonged to the State.
The homes, designed in a Mediterranean style, were fully furnished—some with a pool and solar panels—and contained furniture, appliances, clothing, and personal items of the owners.
The construction of the smallest house cost around 500,000 dollars; the largest one ranged between 700,000 and 800,000 dollars.
When the retirees contacted the INSS headquarters in Managua, an official offered to rent them their own houses for about $2,000 a month.
"It’s a mockery; they take away our homes and then want to rent them back to us," replied one of the homeowners.
The confiscation also rendered about 15 local workers unemployed, who were involved in security, gardening, maintenance, cleaning, and cooking.
"I don't think they have any idea of the damage they are causing. Several people have lost their jobs, but we also used to spend money in local businesses," stated another affected individual.
The retirees reported the case to the United States Embassy in Managua, but were told in response that the diplomatic representation could not intervene in property matters.
A spokesperson for the State Department described the situation as "deeply regrettable" and reminded that its travel advisory for Nicaragua—updated in July 2026 to level 3 ("reconsider travel")—already warned that authorities may seize property without prior notice or legal justification.
This case fits into a pattern of accelerated dispossession: between 2024 and October 2026, the PGJ transferred over 370 confiscated properties to the INSS.
In April 2026, the United States imposed sanctions on Ortega's children and companies linked to the gold sector for facilitating the confiscation of American assets, amid growing pressure on the regime.
"What hurts the most is that they have taken away our dream of living in peace in this country, which we fell in love with and decided to invest in to stay," summarized one of the dispossessed retirees.
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