Budgeting only for the price is the most common mistake. These are the items that appear in almost every purchase in Honduras.
Real estate transfer tax
It taxes the transfer of ownership at 1.5%. It is calculated on the transaction value or the cadastral value, whichever is higher, and the notary settles it before executing the deed. By custom the buyer pays it, but the parties may agree otherwise.
Notary fees
They cover document review, drafting the deed and processing it. Always ask for a written quote stating what is included (copies, certified deeds, filing at the registry).
Registration fees
The Instituto de la Propiedad charges for recording the deed and for any certificates you request. A mortgage is recorded as well.
If you finance
- Down payment, according to the bank's policy.
- Appraisal by a bank-approved valuer.
- Origination fee, life and property insurance, and the cost of the mortgage deed.
Capital gains tax (paid by the seller)
The Income Tax Law sets a single 10% tax on capital gains. There are exclusions, for example for certain sales of the seller's habitual home; the seller should confirm them with an accountant.
Other items
- Municipal tax clearance and, in condominiums, the administration's clearance letter.
- Outstanding community or maintenance fees, best prorated to the handover date.
- Brokerage commission, if any, under the brokerage agreement.
CARACOL tip
Ask the notary for a settlement sheet before signing the purchase promise and write down who pays each item. That way nobody argues about costs on the day of the deed.