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Is the Government stable?
Honduras is a democracy headed by a President and Legislature elected by popular vote. All elected officials serve four-year terms. There also is an executive and judicial branch and appointed governors of eighteen departments. As is true in much of Latin America, Honduras has privatized most businesses and is very interested in attracting foreign investment. For example, the 4 International Airports in Honduras are operated by the same company that operates the San Francisco Airport. The government has given the company a mandate to spend $55 million in the next 5 years for improvement and expansion. The government understands the need for absolute stability. Therefore, the laws of Honduras extend the same protections to foreign investors as its own citizens. Many experts believe Honduras will be the next Costa Rica, or Caymans. You will find that it is far different from the image some people have of Central America. Thriving business and a sense of optimism are everywhere. Can foreigners own land? Yes. You may own up to 3,000 square meters (approximately 3/4 acre) in your own name subject to certain building requirements. Larger parcels of land may be purchased by forming a Honduran Corporation. An attorney can advise you on the details. This is common practice and recommended to many clients. What are estimated taxes and closing cost? A property transfer is based on the transaction value and is 4% for unimproved property and 3% for improved property. An additional 2% should be anticipated for legal fees and other closing costs. Many times this is negotiable. We can recommend 2 or 3 different attorneys for you to interview. Annual property taxes are reasonable. The annual tax for an acre parcel depending upon location will average $100 and taxes on a beach front home likely will be less than $375. What about utilities? Water supply currently is from sub surface wells and rain cisterns. Since the Bay Islands receive over 90p inches of rain per year (primarily from September 15 to December 15), with proper conservation echiques, water is not a significant problem. Electricity is supplied to Roatan by Roatan Electric Company. Sewage is primarily handled by private septic systems. In 1998 Roatan received a multi-million dollar load for the installation of new sewage system for three towns. Are there building restrictions? There are no zoning laws on the Bay Island, although a task force is developing them. Therefore, it is important to be careful when acquiring small parcels which eventually, may have a use "next door" that may be incompatible with your plans. Many people acquire a property for a residence within a master planned village in order to have the protection of covenants. Building permits are required and issued by the municipality. What about the education system? There are several bilingual schools on the island and every town has its own public school. Some students use tutors or correspondence courses that are accredited in the United States, and some families send their children to the U.S. or the mainland for their education. College education is usually completed in the U.S. or the mainland Honduras. Are there medical facilities? There are several clinics, two hospitals and a recompression chamber for divers. One of the hospitals is private and designed for the foreigner communities. Modern state-of-the-art equipment and well trained doctors are on call 24 hours/day. Ambulance service is also now available on Roatan. Larger medical centers are available on the mainland. How does the cost of living compare to the U.S.? Life is simpler on the islands and you will find your needs are less. The price of U.S. goods are higher, as you might expect, since they have to be shipped via boat. However, local goods are inexpensive. Gasoline is currently $4 per gallon and a loaf of bread is $1.2. There are grocery and hardware stores, several appliance stores, and lumber yards. Maids, cooks and gardeners wages average $7 U.S. a day. Freshly caught seafood is readily available on the Islands through local fisherman and is relatively cheap. Lobster tails and jumbo shrimp run about $5 t0 $6 per pound and fresh fish is about $2.5 per pound. Why invest in the Bay Islands? The stable government is but one of the reasons that Honduras is receiving increasing attention as a retirement and business haven. The year round temperate climate, diverse topography with beaches and mountains, a developing economy, English speaking inhabitants on the islands, friendly people, good medical care and low-cost living are some of the features. The close proximity to the USA (just 2 hours by plane) makes it the perfect second residence for many who would like their own piece of paradise. The Bay Islands are relatively undiscovered and there are many opportunities. How do I send larger items to Roatan and what does it cost? There are two shipping companies servicing the island of Roatan: Jackson Shipping out of Tampa, Florida, and Hyde Shipping out of Miami, Florida. The cost of the shipping varies with weight and size as does the duty costs depending on the item. Many boats from mainland Honduras ports to Roatan are very inexpensive. What is the advantage of Honduran residency? If you have residency status, you can bring in all your household items at one time with a duty free exemption. You may bring in a new car and a boat every 5 years if you have a retired residency status. To obtain Honduran residency, you should contact the Honduran Consulate in your area, as well as a local Attorney who can assist in the process. Can I work in Honduras? Yes, with the proper work permits. If you have the management skills and investment capital to start a new business, there are many opportunities from which to chose. 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