Violence has been used against U.S. citizens involved in disputed property cases. Potential investors should engage competent local legal representation before making any commitments. Investors should also thoroughly check the references of attorneys and real estate agents before committing to utilizing their services or entering into any form of a legal agreement with them.
Unfortunately, the U.S. Embassy does not have the authority to provide legal advice or representation and cannot intervene in private property disputes. The U.S. Embassy can provide a list of attorneys (PDF 325 KB) in Honduras registered with the U.S. Embassy, who have expressed interest in representing U.S. citizens abroad; however, please note that this list is not to be considered as a recommendation of the quality or competency of the attorneys on the list.
A breathtaking location with superb dives sites, white sand beaches and Mayan ruins, Honduras and Roatan in the Bay Islands in particular, is a comparatively affordable destination with a rapidly growing property market.
Our guide takes you through the process of buying property in Honduras / Roatan from beginning to end, including an introduction to the real estate market, the buying process and the taxes you will need to be aware of.
Yes, foreigners can buy property in Honduras / Roatan and the Government welcomes investment from overseas buyers. Foreign nationals can acquire up to 3,000 square meters (0.74 acres) of land in Honduras and Roatan. Larger areas can be acquired through a corporation, which a foreign national can be either sole or joint owner of.
Roatan Buyers of Property on Roatan or Utila Islands, Bay Islands,Honduras
Roatan Island, certainly shows purchase value, as compared to virtually every other Caribbean Island. Many, over the years have considered property purchases in the Caribbean. Those same people often felt that their dreams of owning a piece of the Caribbean were watching price points go up past their ability to afford their dream. Prices, island wide, are good and bargains can be found. RE/MAX on Roatan provides you with two MLS systems to search, therefore a larger selection than any real estate operation in the country!
Property Taxes are extremely low in regard to what most are used to in most other countries. A typical 3br home is +/- $800.00. A vacant home site of average price can be about $100.00 annually. (all property taxes are calculated on the purchase price of the property.
It is desirable to choose the industrial land in areas with good communications and easy access to roads and railways. Another factor to consider is whether there are industrial parks nearby from which this type of property can benefit.
There are no specific factors to consider when buying agricultural land in Honduras, unlike urban or industrial land. Agricultural land is valued on its potential and its location, just like any other type of investment. Many people choose this type of property as an alternative investment that gives good returns in the long term.
The acquisition of industrial land should also consider the legal aspects that surround this type of investment. In fact, industrial land is governed by a special law called the Law of Industrial Area. This law regulates the sale and acquisition of this type of property and its use for different purposes.
Although it seems obvious, it should be taken into account that distances between cities and towns can still be some distance in a very small country like Honduras. This means that the price of a property in specific locations may not be as high as other less distant and thus more accessible locations. However, it would make sense to use the former for rental purposes rather than the latter.
Beachfront homes and ocean view property are two options for those looking at homes for sale in Honduras. Because they are now much more attractive to foreign investors, this type of property has become increasingly sought after by people worldwide.
An ocean view is also a sought-after type of property, especially for foreigners looking for beachfront homes on the Caribbean sea. These properties not only allow them to enjoy beautiful views by day but the same can be said at night.
An excellent feature for property in Honduras that makes it appealing to investors is that there are laws that regulate construction quality within each urban zone and residential area, allowing authorities to punish owners who do not meet these standards. This means that buyers can be sure that their investments will be profitable in the long term, both for the initial buyer and those who later purchase these properties.
There is less competition and more opportunity to make a profit when buying property in Honduras due to its location on the Caribbean coast of Central America. This makes Roatan and Honduras popular destinations for those looking to buy property or invest in real estate (especially after natural disasters).
Honduras property investment laws are quite friendly to property owners. After five years, property taxes can be written off, and property sales may be tax-exempt for foreigners if the property is owned by a Honduran company or corporation.
One benefit to property ownership is that property owners can use property in Roatan or Honduras as collateral for a property loan. Property investment loans typically have low interest rates and longer payment terms, making property in Roatan and Honduras more affordable compared to property investments outside of the country.
Property investors can make additional profit by renting out their property while they are not using it. Depending on property type and location, property prices are rising steadily for property in Roatan or Honduras. Properties are easier to sell than many other types of investments.
Maintaining property in Roatan has never been simpler. There is a growing infrastructure (including security), and property owners can hire full-time or part-time property managers for a relatively low cost.
To make the best possible investment, investors must first conduct market research to see how tourism will affect their potential property values. Investors must also determine how they can best utilize the property and whether it is a good investment for them or not.
Property owners should look into purchasing oceanfront land instead of beachfront or bay front land (if possible) because ocean views are more desirable than other views (especially when tourists have limited time in the country and want to see beaches). Proper research is necessary before purchasing property, so investors know exactly what they are getting into.
Owners should also look into hiring real estate agents or property managers to maintain their investments, especially those who live in the States and can only visit sporadically. Working with a full-time or part-time property manager might not be an option for owners looking to get away from it all. Still, it is worth considering if you plan on expanding your investment portfolio or increasing its value.
As mentioned above, not all investment opportunities are suitable for everyone; it is worth considering that the Roatan or Honduras real estate market may be perfect for some people, but other buyers might find themselves better suited elsewhere. Investors should consider how they as individuals will use their property before making any final decisions.
Yes. You may own up to 3,000 square meters (approximately 3/4 acre) in your own name. Larger parcels may be purchased by forming a Honduran corporation. Since the year 1990, The Honduran Law granted foreigners rights to purchase property on the Bay Islands and along the north coast of Honduras (mainland), within the first 40 kilometers from the beach line.
The addition of two cruise ship terminals in the last decade has increased interest in the island for both tourism and foreign real estate investments. Of those who purchased beachfront property five or more years ago, many are now re-selling and seeing an enormous return on their original real estate investments.
The value of beachfront real estate continues to climb, so even though you will be paying a lot more than those people paid several years ago, an investment in ocean-view property now is still more affordable than other Caribbean islands, with property values still climbing.
Utila is the third of the main islands and is a sharp contrast to its larger siblings. Flat and often marshy, this island is a haven for scuba enthusiasts and backpackers. A large number of foreigners have recently started buying land and beach lots here to build homes. Utila is closest to the mainland, just 10 miles offshore, and also has an airport, as well as a ferry to La Ceiba.
The north coast of the mainland is 750 kilometers of vast beaches. The beachfront property here is much less expensive, but the region is waking up to the fact that beachfront is a finite commodity, thus the value is rising, at a slower rate than the islands, but rising nonetheless. Around the town of La Ceiba, beachfront real estate is only minutes from the cooler climate of the cloud forest, so in one day you can swim in the sea, ride horses, go river rafting, and tackle a canopy zip line!
As in most Latin American countries, notaries are responsible for overseeing the transfer of title. The first task of the notary is to conduct the title search. We strongly recommend that you take out title insurance on your Honduran property. U.S. citizens have been involved in at least 60 property disputes in Honduras over the years. And as more expatriates begin to buy in the country, that number is likely to increase. Before 1990, people registered land in private registries and did all kinds of things to get around the ban on foreign ownership of property. Some foreign ownership of land in the Bay Islands was contested, and people lost their property. Make sure you can legally own your property before settling on it. After your attorney notifies you that the title is clear and free, then, and only then, should you settle on your property.
 38c6e68cf9