The tax implications of investing in real estate in Roatan, Honduras, depend on the type and purpose of the real estate, according to Islevision Investment Group. General purpose housing investment attracts property taxes, but the situation is different if the real estate is related to the tourism industry.
Tourism plays an important part in the country's economic well-being, and this has been recognized by the Honduran government. As of 2015, the government has put laws in place to protect and promote investment in tourism-related properties, including hotels, resort sites and restaurants. As a result, investment in these areas is exempt from any form of income tax.
However, as stated by RE/Max, investors need to pay property taxes when purchasing a property on the island. The taxes vary depending on the specific area, but are much lower than those incurred in the United States. If investors choose to live on the island, the type of taxes they pay depend on whether they take up or qualify for residency, and the type of residency granted. An investor residence involves a requirement to invest at least $50,000 in the country and provide a detailed project description that includes details of how the project benefits the island and the local community.