Honduras: Taxes and Costs

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Moderate 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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INDIVIDUAL TAXATION

Nonresidents are taxed on their Honduran-sourced income Married couples are generally taxed jointly, but they may elect for separate taxation.

INCOME TAX

For nonresidents of Honduras, and foreign owned companies (except those located inside the Free Zones and Industrial Processing Zones) income tax is levied on net income. Taxable income is computed by deducting costs incurred and depreciation expense (capital allowance) from the gross income. Real estate rentals are taxed at 10%

Capital Gains Tax

Capital gains earned by nonresidents 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)

Honduras collects annual property taxes based on the Ley de Municipalidades (Law of Municipality). The tax rates are levied on the property’s declared value and vary depending on the municipality. In the capital Tegucigalpa, the rate is 5% for properties located in the Central District. It is from 0.1% to 0.8% for properties in the San Pedro Sula, and 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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