How much land can I buy on Roatan as a foreigner?
As a foreigner without Honduran residency, you may purchase land one time up to 0.72 acres (or 3,000 square meters). If you would like to purchase more than 0.72 acres or if you want to make more than one purchase, then you simply form a Honduran corporation through your local Honduran attorney. Once the corporation is formed, you may make larger or more frequent purchases.
If I buy land on Roatan, what are my financing options?
Financing on Roatan is probably not what you’re used to in North America. Some sellers will consider financing with you, others will not. A home equity loan can be an option if your home in the U.S. or Canada is paid for, and some third party lenders offer financing but the rates are typically quite high. Your best bet is to put in a cash offer.
Is accessibility to land a concern on Roatan?
We always ensure that our clients receive sound legal advice to make the process of purchasing property abroad an easy and enjoyable one. Part of that process is to be absolutely sure that access to your land is deeded and registered, and is included in all legal documentation for your purchase. Whether access is by road or water, it is vital that you have access legally established.
Do I need a building permit if I purchase undeveloped land?
Yes, you need to get a permit from the Municipal government whether the land is developed or not. Your builder or contractor will apply for the permit, which typically costs about 5% of the cost of the home and usually take about 15 days to obtain.
What types of building materials are typically used on Roatan? Is there a benefit to one over another?
The two primary materials used in all construction on Roatan are wood and cement. Many homebuilders opt for a combination of the two, as there are benefits to both. Costs for cement are higher than the costs for wood, but insuring wooden homes costs more than insuring a cement home.
What are typical construction costs if I want to build?
If you use wood, construction costs generally range from $80-100 per square foot. For cement, costs generally run between $100-120 per square foot. Both estimates are for standard finishes. The slope of the land certainly plays an important role in costs, as a steeper slope can mean a more dramatic and beautiful look ,but also higher costs.
Do I need to worry about hurricanes or tropical storms?
Although we are located in the Caribbean, Roatan benefits from its location far enough west and south to avoid the majority of hurricanes and tropical storms. The last direct hurricane hit on Roatan was in 1998, when Hurricane Mitch swept through the area. Statistically, hurricanes hit the island once every 26 years. This is a major benefit for property owners here on the island as most other areas of the Caribbean have a much more prolific hurricane profile.
Will my property be safe in Honduras?
It is very safe and entirely legal for a foreigner to buy land or a home in Honduras. Of course it is always recommended that if you are purchasing a home, you pay for a home inspection by a qualified professional. Honduras is a relatively politically stable, democratic country with a land ownership system similar to that of the United States.
What are property taxes like on Roatan?
Generally speaking, property taxes are very low on Roatan. They do vary depending upon the property’s location on the island, but a good annual estimate is $400 per $100,000 of the declared property value.
Are attorney fees included in closing costs?
Typical closing costs are approximately 4.5-5.0% of the purchase price, and that includes all attorney fees. Your total costs are easily calculated, which should help you make your final decision.
Are there capital gains taxes in Roatan?
Yes, there is a 10% capital gains tax levied on all property and home sales.
