Can a foreigner buy property in Honduras?

The answer depends on where the property is.

Outside the Article 107 zones

In Tegucigalpa, San Pedro Sula and most of the interior, a foreigner can buy, sell and inherit property with the same steps as a Honduran: registry check, deed before a notary, transfer tax and registration. See How to buy a house in Honduras.

Inside the Article 107 zones

Article 107 of the Constitution reserves to native-born Hondurans and wholly Honduran companies the land within 40 kilometres of the borders and of both coastlines, and land on the islands, cays, reefs and banks. For urban property in those zones it refers to a special law: Decree 90-90.

What Decree 90-90 allows

• Urban zones: areas previously declared urban under the law, and tourism zones declared by the Tourism Secretariat after opinions from the National Agrarian Institute and the municipality (articles 2 and 3).
• A home: a foreign individual may acquire one urban property as an occasional or permanent residence, of up to 3,000 m², including apartments and condominiums. Only one, except by inheritance (article 5).
• A vacant lot to build a home: construction must be finished within 36 months; otherwise a 20% annual surtax on the appraised value applies until it is finished, unless delayed by proven force majeure (article 5).
• Projects: for tourism, economic or social development or public-interest purposes, the project must be qualified and approved by the Tourism Secretariat (article 4), and transferring it requires its authorisation (article 7). Homes under article 5 may be transferred freely.
• Border areas: the Executive may impose additional restrictions near the borders (article 8).

Other routes

Some buyers acquire through a Honduran company or, within approved tourism projects, under the project's regime. Each route has different tax and control consequences: decide it with a Honduran notary.

Before signing

• Confirm with the notary whether the property lies within the Article 107 strip and whether the area is declared urban or a tourism zone.
• Request the registry certificate and make sure no other property is held in your name under article 5.
• If you sign from abroad, grant an apostilled power of attorney.