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Honduras: Taxes and Costs

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Low taxes in Honduras

Effective Tax Rate on Rental Income
Monthly Income	US$1,500	US$6,000	US$12,000
Tax Rate	4.4%	3.1%	5.1%
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Source:			Disclaimer

INDIVIDUAL TAXATION

Non-residents are taxed on their Honduran-sourced income. Married couples are taxed jointly.

INCOME TAX

Income earned by non-residents is taxed at a flat rate of 10%. Income-generating expenses are deductible when calculating taxable income.

RENTAL INCOME
Real estate rentals are taxed at a flat rate of 10%. Taxable income is computed by deducting costs incurred and depreciation expense (capital allowance) from the gross income.

CAPITAL GAINS
Capital gains earned by non-residents from selling real property located in Honduras are taxed at a fixed rate of 10%. The taxable gain is the gross selling price less acquisition costs and improvement costs.

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

• Guide to buying houses and registering property sales in Honduras

Your Comments

posted by Sylvia Daple | 2008-05-07

Retired, US

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