Honduras

 

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Information for Tourists, Investors, Agents and Retirees flag of HondurasThinking About Moving to HONDURAS

This information was assembled for the National Association of Realtors

Click on the Links Below to Read Those Sections:

1. Tourism-Visas and/or Money Required for Entry or Exit,
       Time Limit, etc.

Americans entering Honduras must have a passport that is valid for at least 6 months from the date of entry (some have said 3 months, but personal experience says it’s 6). Travelers may stay for up to 3 months without a visa and may make a request for an additional 30 days, which must be made before the expiration of the initial period. The departure tax is about $33 US.

2. Permanent Residence: Retirement Requirements & Benefits

Acquiring a Retirement Residency Card
An American must apply for a Retirement Residency Card at a Honduran consulate in the US country before going to Honduras to retire. The application must be made through an attorney. To apply for residency you will need:

Honduras has signed the convention that requires the use of an apostille, an internationally standardized authorization certificate, to give legal value to documents issued in foreign countries.

Four types of residency permits can be obtained in Honduras. All allow an applicant to include dependants.

Work permits for residents
Foreigners may not work without being a resident and having a work permit. Those who would like to work in Honduras should be legal residents of Honduras and apply for a work permit. A lawyer must carry out the procedure to request the work permit before the Secretary of Labor. Below is a list of documents required to apply for a work permit, all photocopies must be authenticated by a notary.

Benefits
Foreign residents are not subject to Honduran income taxes on their foreign income, regardless of the amount of the income. Only income earned in Honduras will be taxed by Honduras. The general range is 5%-20% on personal income. You are exempt in the U.S. from paying income tax on the first $80,000 per person of earned income in a foreign country.

3. Foreign Investment Rules, Promotion, Incentives

Property in Honduras may be owned by foreigners with the same rights of ownership as Hondurans. Buying property in Honduras is not a complex process. Foreigners can purchase up to about 3/4 of an acre as an individual, or more by forming a Honduran corporation. Title is held in the same manner as fee simple.

The Honduran government decided that tourism could be expanded to bring in revenue. As a result, in 1992, legislators wrote new laws to attract foreign investment into the country. As an integral part of this, investment incentives were created for tourism projects in the Bay Islands, La Ceiba, Trujillo, Tela, and Copan. The Honduran government added to previous laws beneficial to the Bay Islands with the passage of the Bay Islands Free Tourist Zone in 2007.

These laws allow investors to pay no income tax for 20 years on profits made from a government-approved tourism project. Investors are exempt from the local 12% sales tax and are simply subject to a 1% asset tax on the capital registered after 2 years of being in business.

A project can be any tourism-related project: a restaurant, club, café, or souvenir shop. All construction materials, equipment, machinery, spare parts, sports equipment for the project can be imported duty free.

An application for government approval will require the following documents:
• Corporation papers
• A power of attorney
• A copy of your land survey
• Title to the land
• A set of plans for development.
For a tourism-development project, you will also need a feasibility study and an environmental impact study. Once you receive approval, you will get, in effect, a duty-free license to do business. But you’ll need help to get the paperwork done. It can take a year or more to get approval. While your papers are being processed, you will want to bring in your vehicles, supplies, and so forth. Customs law allows you to ask for a 180-day temporary permit–which can be extended, if necessary–while your residency card and paperwork are being processed. How much will it cost you to get your project approved as an official tourism project? Charges will probably run as high as 5% to 10% of your total investment. Financing is available in dollars at 12% to 13% through the local banking system.

Capital Gains Tax in the Bay Islands was reduced from 10% to 4% under rules of ZOLITUR. On the mainland, the capital gains tax rate is 10%.

4. Restrictions on Property Ownership by Foreigners

Foreigners may own real property in Honduras with the same rights as Hondurans.

5. Laws and Rules Covering Real Estate Agency &
       Brokerage Licenses, Work Permit Required

All real estate companies must be affiliated with CANABIRH (the Honduran National Chamber of Real Estate) or else they will not be legally allowed to act as agents in real estate transactions.

On the Bay Islands, the Roatan Realtor Association, a section of CANABIRH, has a set of Standards of Practice and Ethics Codes that agents must follow.

6. Banking & Availability of Financing

Cashing checks and transferring funds is somewhere between difficult and impossible. There are a few ATMs. Some banks have US dollar accounts where you can deposit money and then cash personal checks. Visas and MasterCards are accepted at most hotels, restaurants, and stores in the largest cities and on Roatan.

Financing for purchasing properties is almost unattainable from banks. If any financing is available for properties, it is by sellers.

In Roatan, banks will loan up to 50% of the construction cost of a home after the applicant has paid cash for a lot. The cost of the land is not included in the 50%.

7. Property Taxes

 A rule of thumb for calculating property taxes is about $200 in taxes per year for every $100,000 of property value. DO NOT FORGET TO PAY THEM EVERY YEAR!

The tax on capital gains in the Bay Islands was reduced from 10% to 4% under rules of ZOLITUR (related to establishment of the Bay Islands Free Tourist Zone). On the mainland, the capital gains tax rate is 10%

8. Property Insurance Availability

Title insurance on Roatan is available from First American Title or Stewart Title.
Home/property insurance is available from international companies such as HSBC.

9. Property Management Firms

On Roatan, property management services include property maintenance, marketing and promoting of rental property, rental services for rental clients, and accounting.

10. Availability & Quality of Medical Care, Facilities Having
        Relationship with American Hospitals

Tegucigalpa
Hospital Viera, general care including trauma
Barrio La Ronda
5 Calle, 11 y 12 Ave
Tel: 237-7136

Hospital La Policlínica, general care including trauma
3 Avenida, entre 7 y 8 Calle
Comayaguela
Tel: 237-3260 / 237-3261 / 237-3262

Hospital Centro Medico, general care including trauma
Barrio La Granja
Comayaguela
Tel: 225-4060

Hospital Honduras Medical Center, general care
Col. Las Minitas
Avenida Juan Lindo
Tel: 280-1500

San Pedro Sula
Centro Medico (CEMESA), www.hcemesa.com,  A modern treatment and diagnostic facility; CT scanning and Magnetic Resonance Imaging (MRI) capability; new outpatient building located on the hospital grounds; 24-hour ambulance service.
Barrio Los Andes, Ave. Circunvalacion NO, 11 Calle,
Tel: 553-5648, 553-5647; emergency 553-7070

La Ceiba
Medicentro, , , is a new well-equipped medical center with over 40 doctors offering a full range of services including internists, general practitioners, ophthalmologists, urologists, gynecology and obstetrics, pediatrics, neurology, dermatologist, dentists, and a psychologist, amongst others. Lab work, X-rays, and ultra-sound equipment is also available.
On 13th St., main entrance to Colonia (neighborhood) El Naranjal
Tel: 440-3737

Hospital Vicente D’Antoni, www.hospitaldantoni.org, A large and well-equipped hospital offering a variety of services including 24-hour ambulance and emergency service.
Ave. Morazán
Tel: 443-2264

11. US Embassy or Consular Office Contact Information

REGISTRATION / EMBASSY LOCATION: U. S. citizens living or traveling in Honduras are encouraged to register with the nearest U. S. embassy or consulate at the Department of State’s travel registration page in order to obtain updated information on local travel and security. U. S. citizens without Internet access may register directly with the nearest U. S. embassy or consulate. Registration is important; it allows the State Department to assist U. S. citizens in an emergency.
Local embassy information is available below and at the Department of State’s list of embassies and consulates.

U.S. Embassy Honduras

Physical Address:
Embajada de los Estados Unidos de América
Avenida La Paz
Tegucigalpa, Honduras

Mailing Address:
Apartado Postal No. 3453
Tegucigalpa, Honduras.

Telephone Numbers (Country Code is 504)
NOTE: If you are calling from the U.S., please dial 011 + 504 + telephone number

Embassy (504) 236-9320, (504) 238-5114
US Agency for Int'l Development (USAID) (504) 236-9320, (504) 238-5114
Military Group (504) 233-6774
Peace Corps (504) 232-1753