A: Yes, foreigners have been permitted to own property in Honduras since 1991.

A: Non-Honduran citizens can buy up to 3000 square meters (.74 acres) for residential use individually. Alternatively, setting up a Honduran Corporation allows for ownership of properties of any size for development or residential purposes.

A: Forming a Honduran Corporation is a straightforward process usually handled by a local attorney for around $1,500. It's essential to use an English-speaking lawyer if you don't speak Spanish. This corporation grants you property ownership rights similar to those of a Honduran citizen.

A: Honduras has historically maintained stability and is the second oldest democracy in Central or South America. Its government system consists of three branches, modeled after the United States system, with a constitution established in the late 1970s with assistance from the Carter Administration.

A: Generally, Roatan is safe, although like any country, certain areas may have higher crime rates. Islanders are typically peaceful and friendly, but it's advisable to exercise caution, especially regarding petty theft. The presence of the largest U.S. military base in Central and South America on the mainland of Honduras contributes to security.

A: Purchasing property involves selecting the desired property, entering into a purchase agreement outlining details such as price and timeline, making a deposit and closing the transaction. Real estate professionals and attorneys assist with obtaining necessary documentation, such as title copies and surveys, to complete the transaction.

A: Residency is not mandatory for short visits lasting 90 days or less, with an option for a one-time extension of 30 days. However, for longer stays or permanent relocation, obtaining Residency is recommended.

A: Honduras offers various Residency options, including Retirement Residency for individuals with a monthly retirement income of $2,000 or more, Investor's Residency, and Rentista Residency for those living off income generated locally or abroad. The application typically requires documents such as a police report, passport, and health certificate, taking 6-12 months to complete at a cost starting from $1500. It's crucial to consult a reliable local attorney before initiating the process.

A: Bank policies vary, but setting up an account is feasible, especially if your property is owned through a Honduran Corporation with you as the Administrator. Some banks accept passports for foreign accounts, while others may require legal residency. Your REALTOR or attorney can provide guidance on this matter.

A: Many international banks in Honduras are conservative and less prone to failure compared to U.S. banks. Despite lacking government-backed insurance, they maintain stability. Honduras is also a member of the International Association of Deposit Insurers, ensuring additional security for depositors.

A: Typically, buyers cover closing costs, including real estate commission/fees (taxable up to 15%) and a 4% capital gains tax paid by the seller. If property transfer involves a change of administrators within a corporation, costs are usually lower. Otherwise, closing costs amount to approximately 5.7 to 6% of the purchase price.