Honduras: Living There - Tax Issues
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Living There
INDIVIDUAL TAXATION
Residents are taxed on their worldwide income. Married couples are generally taxed jointly, but they may elect for separate taxation.
INCOME TAX
Income tax is levied at progressive rates and the tax bands are updated every five years.
INCOME TAX (FROM 2006 TO 2010) |
|
| TAXABLE INCOME, HNL (US$) | TAX RATE |
| Up to 70,000 (US$3,680) | nil |
| 70,000 – 100,000 (US$5,258) | 10% on band over US$3,680 |
| 100,000 – 200,000 (US$10,516) | 15% on band over US$5,258 |
| 200,000 – 500,000 (US$26,289) | 20% on band over US$10,516 |
| Over 500,000 (US$26,289) | 25% on all income over US$26,289 |
| Source: Global Property Guide | |
Residents are entitled to some deductions. Payments for educational expenses and medical expenses up to HNL20,000 (US$1,052) are deductible annually. Gifts made to the state and legally recognized institutions are also deductible.
RENTAL INCOME
Rental income is taxed at progressive rates. Income-generating expenses are deductible when calculating the taxable income.
CAPITAL GAINS
Capital gains realized by residents from selling real property are taxed at a fixed rate of 10%. The taxable gain is the gross selling price less acquisition costs and improvement costs.
Capital gains less than HNL50,000 (US$2,629) realized by resident individuals from selling their principal residence are exempt from taxation only if the gains are reinvested in a property that would serve as their principal residence. Gains exceeding this threshold amount are taxable.
PROPERTY TAX
Real Estate Tax (Impuesto sobre bienes inmuebles)
Real estate tax is levied on all real property in Honduras at progressive rates. The base is the property’s declared value. Real estate tax is levied at 5% for properties located in the Central District.
The tax is levied at progressive rates from 0.1% to 0.8% for properties in the San Pedro Sula. Real estate tax is levied at 0.15% for urban properties located in other areas.
Honduras - more data and information
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