Authored by the expert who managed and guided the team behind the Honduras Property Pack
Yes, the analysis of Roatan Island's property market is included in our pack
Foreigners can legally buy property in Roatan Island, Honduras, with specific restrictions and requirements that differ from local ownership rules.
The process involves understanding size limitations, choosing between individual or corporate ownership, navigating legal requirements, and working with local professionals to ensure a secure transaction. As of September 2025, the Roatan property market continues to attract international buyers with beachfront properties showing 8% annual appreciation and strong rental demand in tourist areas.
If you want to go deeper, you can check our pack of documents related to the real estate market in Honduras, based on reliable facts and data, not opinions or rumors.
Foreigners can buy property in Roatan with restrictions on size (3,000sqm max) for individual ownership, while larger properties require a Honduran corporation.
The purchase process involves legal assistance, due diligence, and closing costs around 6% of property value, with no residency requirements.
| Aspect | Individual Ownership | Corporate Ownership |
|---|---|---|
| Property Size Limit | 3,000sqm (0.74 acres) | No restrictions |
| Number of Properties | One property only | Multiple properties allowed |
| Setup Cost | Standard closing costs | Additional $1,250-$1,500 |
| Annual Requirements | Property tax only | Corporation maintenance |
| Transfer Flexibility | Property transfer required | Share transfer possible |
| Best For | Single small property | Multiple/large properties |
| Foreign Ownership | 100% allowed | 100% allowed |
Can foreigners legally buy property in Roatan and are there restrictions compared to locals?
Foreigners can legally purchase property in Roatan Island, Honduras, but face specific size and quantity restrictions that don't apply to Honduran citizens.
Non-Honduran citizens may directly own up to one property with a maximum size of 3,000 square meters (approximately 0.74 acres). This restriction applies to the total land area, not the building size, making it suitable for most residential properties including condos, single-family homes, and small beachfront lots.
For properties larger than 3,000 square meters or multiple properties, foreigners must purchase through a Honduran corporation. These corporations can be 100% foreign-owned, effectively allowing unlimited property ownership while maintaining legal compliance. The corporate structure adds setup costs of $1,250-$1,500 but provides greater flexibility for investors planning multiple acquisitions.
Local Honduran citizens face no such restrictions and can own unlimited properties of any size directly. However, the foreign ownership rules in Roatan are among the most liberal in Central America, making the island particularly attractive to international buyers.
It's something we develop in our Honduras property pack.
Do I need residency, a visa, or special permits to own property as a foreigner in Roatan?
No residency, visa, or special permits are required for foreigners to own property in Roatan Island.
You can purchase property as a tourist, temporary visitor, or non-resident without any immigration status requirements. The only legal requirement is compliance with the property size limitations mentioned above. This makes Roatan particularly accessible compared to other Central American countries that require residency or special investment visas.
However, if you plan to live in Honduras long-term, you may want to consider applying for residency for other benefits like easier banking, employment opportunities, or tax advantages. Residency status doesn't affect your property ownership rights but can simplify other aspects of living in Honduras.
The purchase process requires only your passport and proof of identity - no additional immigration documentation is necessary for the transaction itself.
Is it necessary to be physically present in Honduras during the property purchase process?
Physical presence in Honduras is not required for the entire property purchase process, though it's highly recommended for viewing properties and meeting professionals.
The closing can be completed remotely by granting power of attorney (POA) to a trusted representative, typically your lawyer or real estate agent. The POA document must be properly notarized and authenticated, which can be done at a Honduran consulate in your home country.
Many successful property purchases are completed with buyers visiting Roatan only once to view properties and meet their legal team, then completing the transaction remotely. The lawyer handles document preparation, title verification, and registration on your behalf.
However, being present offers advantages including personal property inspection, direct communication with all parties, immediate problem resolution, and the ability to take possession immediately upon closing. Remote closings may extend the timeline by several weeks due to document shipping and authentication requirements.
What is the step-by-step process to buy a property in Roatan, and which documents are required?
The Roatan property purchase process follows a structured six-step approach that typically takes 30-60 days to complete.
| Step | Timeline | Key Activities |
|---|---|---|
| 1. Property Search & Offer | 1-4 weeks | Work with licensed agent, view properties, make offer |
| 2. Sales Agreement | 3-7 days | Negotiate terms, review contract, handle counteroffers |
| 3. Deposit & Escrow | 1-2 days | Wire 10% earnest deposit to escrow account |
| 4. Due Diligence | 2-3 weeks | Lawyer conducts title search, survey verification, document review |
| 5. Closing Preparation | 1 week | Prepare Honduran Protocol, arrange final payments, coordinate parties |
| 6. Closing & Registration | 1-2 weeks | Sign documents, transfer funds, register sale, receive new title |
Required documents include your passport and proof of identity, the sales agreement, current title deed ("Escritura Publica" or "Dominio Pleno"), transfer documents prepared by your attorney, and power of attorney if you're not present at closing.
The lawyer prepares all legal documents including the Honduran Protocol that officially transfers ownership. Once signed by both parties and notarized, the sale is registered in the public land titles registry, and a new title is issued in your name.
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Is hiring a lawyer mandatory, and how do I choose a reliable one on the island?
Hiring a lawyer is strongly recommended and considered de facto mandatory for foreign property purchases in Roatan due to the complexity of Honduran real estate law.
Lawyers conduct essential due diligence including title searches, survey verification, lien checks, and ensuring clear ownership chain. They prepare all legal documents, handle the registration process, and protect your interests throughout the transaction. Without proper legal representation, foreigners risk purchasing properties with title defects, outstanding debts, or legal complications.
Choose a lawyer by seeking recommendations from trusted real estate agents, established expat communities, and reputable Roatan agencies. Ensure the lawyer is licensed in Honduras, has extensive experience with foreign transactions, and understands corporate formation if you're purchasing through a Honduran corporation.
Key qualities include English fluency, transparency about fees, prompt communication, local connections, and willingness to explain the process clearly. Lawyer fees typically range from $1,250-$1,500 for corporation setup, with additional charges for general legal services varying by transaction complexity.
It's something we develop in our Honduras property pack.
What taxes, fees, and extra costs should I expect when purchasing and later reselling a property?
Total closing costs in Roatan typically amount to approximately 6% of the property sale price, with specific taxes and fees distributed across multiple categories.
The land transfer tax is 1.5% of the property value, paid by the buyer. Additional costs include legal fees ($1,250-$1,500+ depending on complexity), notary and registration fees, municipal catastral fees where applicable, and corporation setup fees if purchasing through a Honduran entity.
Annual ongoing costs include property tax of approximately $4 per $1,000 of assessed property value (based on registered value or municipal assessment, whichever is higher). This translates to roughly 0.4% annually, making Roatan property taxes very low compared to North American standards.
Upon resale, sellers pay capital gains tax and real estate commissions (typically 5-7%). However, selling corporation shares instead of property directly may reduce some transfer fees and taxes, making corporate ownership advantageous for future resale flexibility.
Power of attorney preparation adds costs if you're not present for closing, and international wire transfer fees apply for fund transfers from abroad.
Can foreigners get a mortgage in Roatan, what are the typical rates and conditions, and what tips help in securing financing?
Mortgages for foreigners in Roatan are available but challenging to secure, with local banks offering limited options and strict requirements.
Local Honduran banks typically offer interest rates between 6-9% annually, requiring down payments of 20-30% and extensive financial documentation. Qualification requires proof of stable income, substantial assets, good credit history, and often local banking relationships that can take months to establish.
Seller financing provides an alternative option with higher interest rates (12-14%) but more flexible qualification criteria. These arrangements typically require larger down payments (30% or more) and shorter terms (1-5 years), making them suitable for buyers with significant cash but limited traditional financing options.
Tips for securing financing include preparing all financial documentation before arrival, establishing relationships with local banks early in the process, considering international lenders familiar with Central American markets, and exploring home equity or retirement account financing from your home country. Cash purchases remain most common and provide significant negotiating advantages in the competitive Roatan market.
Which areas in Roatan are most popular among foreigners, and what makes them attractive for living, renting, or investment?
West Bay stands as the most popular area among foreign buyers, offering luxury resorts, pristine beach access, and the strongest rental demand on the island.
West Bay attracts investors with high-end amenities, proximity to cruise ship terminals, established tourism infrastructure, and properties showing consistent 8% annual appreciation. The area commands premium prices but delivers strong rental yields due to heavy tourist traffic and limited available land for new development.
West End provides a vibrant expat community with active nightlife, restaurants, shops, and diving centers. The area offers more affordable entry points than West Bay while maintaining high rental yields and strong tourism demand. The established infrastructure and walkable layout make it popular for both full-time residents and vacation rental investors.
Sandy Bay offers mixed residential and tourist appeal with lower entry prices than beachfront areas but good rental demand. French Harbour and Pristine Bay feature upscale developments with golf courses and luxury amenities, attracting buyers seeking premium lifestyles.
Inland areas like Coral Views are gaining interest as beachfront properties become scarce, offering more affordable options with potential for future appreciation as development spreads inland.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Honduras versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Where are the best regions for capital appreciation, high rental yields, and strong tourism demand according to the latest data?
Beachfront properties in West Bay and West End consistently deliver the highest capital appreciation rates, with data showing approximately 8% annual appreciation as of September 2025.
These prime waterfront areas have experienced double-digit appreciation over the past decade due to limited developable beachfront land and increasing international demand. Properties within walking distance of major resorts, dive centers, and tourist amenities significantly outperform inland and less-developed regions.
West Bay leads in rental yields due to its position as Roatan's premier tourist destination, with luxury vacation rentals commanding premium nightly rates during peak season (December-April). Properties near cruise ship terminals and established resort infrastructure show the most consistent occupancy rates.
West End provides strong rental yields through a combination of tourist demand and expat long-term rentals, creating year-round income potential. The area's established restaurant and nightlife scene ensures steady demand from both vacation renters and permanent residents.
Properties near diving attractions, golf courses, and eco-tourism facilities demonstrate strong performance across all metrics. As of 2025, prices are forecast to rise 3-7% annually, supported by continued international interest and the physical limitation of developable beachfront land.
What is the breakdown of average property prices across Roatan's cities and regions?
Property prices in Roatan vary significantly based on location, with beachfront and oceanfront properties commanding substantial premiums over inland options.
| Property Type | Location | Average Price (2025) |
|---|---|---|
| 1-Bedroom Condo (60sqm) | Island Average | $228,000 |
| 2-Bedroom Condo (85sqm) | Island Average | $323,000 |
| Single-Family Home | Island Average | $500,000 |
| Beachfront Property | West Bay/West End | $750,000+ |
| Luxury Waterfront | Prime Locations | $1,000,000+ |
| Inland Property | Interior Areas | $200,000-400,000 |
| Development Lots | Various Areas | $50,000-300,000 |
West Bay represents the highest price tier with luxury beachfront condos starting around $750,000 and premium oceanfront homes exceeding $1,000,000. West End offers more moderate pricing while maintaining beachfront access, with properties typically 20-30% less expensive than comparable West Bay options.
Inland properties provide significantly more affordable entry points, with single-family homes available from $200,000-400,000 depending on size and amenities. Development lots range from $50,000 for interior parcels to $300,000+ for beachfront lots, though beachfront land availability continues to decrease.
It's something we develop in our Honduras property pack.
What are the classic mistakes and pitfalls foreigners often face when buying property in Roatan, and how can I avoid them?
The most common mistake foreigners make is failing to conduct proper title searches and surveys, leading to purchases of properties with defective ownership or boundary disputes.
- Inadequate due diligence: Always hire a qualified local lawyer to verify clear title through public registry searches and ensure property boundaries match official surveys.
- Ignoring size restrictions: Understand the 3,000sqm limitation for individual foreign ownership and plan for corporate ownership when necessary to avoid legal complications.
- Underestimating total costs: Budget for the full 6% closing costs plus ongoing expenses rather than focusing only on purchase price.
- Skipping professional representation: Never attempt to navigate the purchase process without experienced local lawyers and real estate professionals.
- Overestimating financing options: Assume cash purchase or arrange financing before property shopping, as local mortgage options are limited and complex.
- Neglecting rental market research: Thoroughly investigate rental demand, seasonal patterns, and management requirements before purchasing investment properties.
- Overlooking building regulations: Verify local zoning, building codes, and HOA restrictions before purchase to avoid future development limitations.
Additional pitfalls include purchasing in non-tourist areas without understanding rental limitations, failing to get everything in writing, and not verifying that properties can be legally transferred to foreigners. Always work with established professionals and insist on comprehensive documentation throughout the process.
What are the fiscal implications of owning property as a foreigner, including rental income taxation and long-term financial planning?
Property ownership in Roatan creates tax obligations in both Honduras and potentially your home country, requiring careful planning to optimize your tax position.
Annual property taxes in Honduras are relatively low at approximately $4 per $1,000 of assessed value, translating to roughly 0.4% annually. However, rental income generated from Roatan properties is subject to Honduran income tax, with rates varying based on total income levels.
Many countries have tax treaties with Honduras that may prevent double taxation, but you must report foreign rental income in your home country. Consult with tax professionals familiar with both jurisdictions to understand your specific obligations and optimization strategies.
Capital gains taxes apply when selling property directly, but using a Honduran corporation can provide flexibility for future sales. Selling corporation shares rather than property may reduce transfer taxes and provide estate planning advantages.
Long-term financial planning considerations include currency exchange risks (though most transactions occur in USD), inflation impacts on peso-denominated taxes, and the benefits of corporate ownership for asset protection and succession planning. Consider establishing local banking relationships for easier property management and tax payments.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Purchasing property in Roatan as a foreigner involves navigating specific legal requirements, but the process is straightforward with proper professional guidance.
The combination of favorable ownership laws, strong tourism demand, and growing international interest makes Roatan an attractive destination for both residential and investment property purchases.
Sources
- Century 21 Roatan - Owning Property
- About Roatan Real Estate - Legalities
- 7th Heaven Properties - Roatan
- Big Sky Roatan Realty - FAQ
- About Roatan Real Estate - Purchasing
- Roatan Executive Realty
- Life in Roatan - Buyers Guide
- Caribbean Real Estate MLS
- About Roatan Real Estate - Economy Report
- The Latinvestor - Price Forecasts