Country Profile:

Honduras, nestled between the Pacific Ocean and the Caribbean Sea, holds a central position in Central America. Honduras is the second largest country in Central America by land area, yet it is one of the poorest countries in the region.

Capital: Tegucigalpa

Population: 9,571,352 (2023 95th)

Ethnic Group: Mestzo(90%), Indian(7%), Black(2%), White(1%)

Area: 112,492 km² (101st)

Offical Language: Spanish

Currency: Lempira (as of Apr 12th, 2024, 1 Honduras Lempira = 0.041 USD)

GDP per Captial: $7,162 (2023, 134th)

How To Get Residency In Honduras:

For foreigners seeking long-term residence, Honduras offers three visa options: an investor visa with a minimum requirement of $55,000; a income visa needing a minimum monthly income of $2,500; and a retirement visa that requires a monthly income of at least $1,500.

Investor Visa:

The economic requirements for the Honduran investment visa are: an investment of $50,000 in deposits, company operations, or other local economic sectors, and a certain amount of deposit at the Central Bank of Honduras (it is best to have a deposit between $5,000 to $8,000).

In other words, depositing $50,000 in a local bank and at least $5,000 in the Central Bank of Honduras qualifies one to apply for the local investment visa.

It’s important to note that for all long-term residency visas in Honduras, applicants cannot complete the application independently or DIY. They must go through lawyers registered with the Honduran government to submit the materials, finalize the investment, and forward the visa.

Also, the Honduran government does not accept real estate as a valid investment category..

The required documents generally include: the applicant’s passport, passport-sized photos, a criminal record clearance, medical examination proof, investment proof, etc.

The required process can be roughly divided into the following three steps:

1. Registration: Applicants need to complete the investor qualification registration at the Honduran Ministry of Industry and Commerce and submit a series of personal documents, including a no criminal record certification.

2. Investment: After completing registration qualifications, applicants need to either go to Honduras or delegate an intermediary agency to finalize the investment.

3. Visa Issuance: After the investment is complete, one can receive a residency card.

The entire visa application cycle is approximately three weeks, including two weeks of review time and one week for the production of the residency card.

The Honduran investment visa is valid for one year, and with maintained investment, it can be renewed indefinitely. To maintain this residency permit, visa holders need to enter Honduras once a year, meaning they shouldn’t be out of the country for more than 12 months at a time.

Rentista/Retirement Visas:

There are two types of income visas in Honduras: the Pensionado visa for retirees and the Rentista visa.

For the Pensionado visa in Honduras, applicants require a consistent overseas retirement income of at least $1,500 monthly. This income can originate from pensions, insurance, or other fixed sources and should be regularly transferred into a Honduran account.

To be eligible for the Honduran Rentista visa, applicants need a steady monthly income of $2,500 from abroad. This income should derive from stable investments, annuities, rental income, or business proceeds. Furthermore, the $2,500 must be transferred into the applicant’s bank account in Honduras each month.

Other fundamental criteria to be met include being healthy, maintaining a clean criminal record, and ensuring you do not compromise local safety.

Generally, holding a income visa does not permit employment. However, as a rentier resident or pensioner, you have the option to apply for authorization to undertake paid work.

Your spouse and children can be included as dependent applicants. You will be required to add an additional amount of $150 for each dependent individually and submit supporting documents such as a birth certificate or marriage certificate to prove the relationship.

Required documents include: a passport with more than a year’s validity; a photo measuring 6cm by 5cm; proof of a clean criminal history; a medical clearance; and evidence of financial stability.

All documents issued in a language other than Spanish must be legally translated and authorized or apostilled by the Ministry of Foreign Affairs.

It’s important to highlight that for all long-term residency visas in Honduras, applicants cannot process the application on their own. They must engage lawyers registered with the Honduran government to submit the documentation, complete the investment, and process the visa application.

Both visa are valid for 1 year and can be renewed indefinitely. After 3 years of legal residence, you can apply for local permanent residency.

The visa fee is $300. For those bringing dependents, there is an additional charge of $150 per person.

Taxation:

In Honduras, residents are not subject to taxation on their foreign income. However, income earned within the country is subject to a tax rate varying from 15% to 25%. Should you buy a property in Honduras and later decide to sell it, the capital gains from the real estate sale will incur a 10% tax. Furthermore, property owners are obligated to pay an annual property tax, which is roughly 0.4% of the property’s overall value.

Naturalization:

After legally residing in Honduras for 5 years, foreigners can apply for permanent residency.

Foreigners who have legally resided in Honduras for 3 years can apply for citizenship. For Central American citizens, the requirement is just 1 year, and for Latin American citizens, it’s 2 years.

Honduras doesn’t enforce a strict residency duration for passport applications. This means an individual could potentially secure a passport even if they don’t reside in Honduras for less than six months annually.

Passport Power:

Except in special circumstances, Honduras does not recognize dual citizenship. The Honduran passport is ranked 40th in the world, tied with others. Passport holders can travel freely (either visa-free or with a visa upon arrival) to 134 countries and regions worldwide (as of Apr 12th, 2024).