Property Purchase in Honduras

Honduras is a promising place for real estate investments. With a great panoramic view and reasonable prices of properties, owning real estate in this country will prove to be a positive experience for expats wishing to find a home in Central America. 

Many foreigners have been enticed to buy properties in this country either for personal gratification or business. Either way, the industry has become very attractive to the international community, with beach fronts and riverfronts being the favourite location of buyers. The value of properties found in these areas is also noted to increase by 5% per annum in recent years. Keep in mind though that a foreigner can only own up to ¾ acre or 3,000 square meters of land in Honduras, while corporations may purchase greater parcels of land. Those who will buy a vacant land should remember to build on it within three years of making the purchase or they will be liable to a fine for failure to develop which usually amounts to 20% of the selling price. 

Process of Buying a Property 

The first step in buying a land in Honduras is always to hire a lawyer who will make sure that the documentation and the property itself are safe and legally free for purchase. It is also the lawyer's job to make sure the boundaries and the measurements of the property are correct and that the property is free of legal impediments. It can be done through an investigation to be conducted at the municipal office. However, before any steps are taken, it must first be ensured that the property is recorded in the Cadastral Office. Otherwise, such it may be legally sold neither to an expatriate nor a citizen. For a hassle-free purchasing of property in Honduras, a foreigner should seek the help of real estate agents. 

Transaction Costs 

Buyers should be aware that municipal taxes such as the Real Estate Property Tax should be paid before having any property titled. The Notario or certified government lawyer charges 3% to 5% of the total market value of the property to issue the preliminary deed. Those who will hire a real estate agent need to cover a fee which is a flat rate of 5% of the property’s selling price. Other applicable fees for purchasing a property are: 

• Federal Sales Tax – 1.5% of the sales price
• Utila Municipality Transfer Tax – 2.0% of the sales price
• Land Registry and Miscellaneous – USD 300 to USD 400 

Once payments have been completed, the buyer can expect around 22 days for the whole registration process to be completed. 

Types of Properties 

Buying a property in Honduras is cheap and easy. There is also a wide selection to choose from whether the buyer is looking for a condominium in the city centre, a cosy family home or property located at a beach front. Below are some of the most in-demand real estate in Honduras and their average costs: 

• Three-bedroom home – USD 200,000 plus USD 60 to USD 80 for country club dues
• Apartments (price per square metre) – USD950 (city centre) / USD 850 (outside city centre)
• Beach –front properties – prices start at USD 15,000 

Many condominiums have been built today. However, there are some restrictions on heights, so one cannot find tall buildings around these areas. But in Guanaja, Utila and Roatan, one can find sprawling land that has remained undeveloped. 

Beach lots in the north cost much less, so these are said to be the most viable sites of investment. In the mainland, one can also find a lot of colonial properties, which are ideal for restoration, especially in Trujillo. The best thing about Honduras is the fabulous acres of land one may buy for half the cost of their price in other Central American locations.