7 Things First-Time Buyers in Honduras Must Know
Buying a home in Honduras for the first time? Whether you’re a local or a foreign investor, there are a few things you absolutely need to understand before making your purchase. Here’s a quick, practical guide to help you avoid common mistakes and buy with confidence.
1. Property Titles Must Be Verified Carefully
One of the biggest risks in Honduras is buying a property with a disputed or improperly registered title. Some properties may lack full legal documentation or be involved in ownership conflicts.
What to do: Hire a trusted real estate attorney to perform a title search through the Instituto de la Propiedad (Property Registry).
2. Foreigners Can Own Property (With Limits)
Yes, foreigners can own property in Honduras, but there are a few key rules:
- No ownership within 40 km of coastlines or borders—unless purchased via a Honduran corporation.
- Direct ownership is limited to properties under 3,000 m².
Tip: Buying near the beach? Set up a Honduran company with legal help.
3. Extra Costs Beyond the Sale Price
The property price isn’t the full cost. Expect to pay:
- Transfer taxes (~1.5%)
- Legal/Notary fees (1–3%)
- Registration costs
- Agent commission (usually seller pays, but confirm)
4. You Must Close Through a Public Notary
In Honduras, all property transactions must be formalized through a licensed notary (who is also an attorney). They handle the deed, legal documents, and registration process.
Important: Never rely on informal contracts or handshakes—get it notarized.
5. Limited Financing Options
Banks in Honduras offer mortgages, but often require:
- 25–30% down payment
- Income verification (local or foreign)
- Life insurance as part of the loan
Tip: Foreign buyers without residency may want to consider cash purchases or seller financing.
6. Work with a Local Realtor Who Knows the Market
There is no universal licensing for agents in Honduras. Choose a local expert who understands the legal system, regional pricing, and zoning rules.
Good agents will protect your interests, not just close the sale.
7. Know Your Property Tax Responsibilities
Annual property taxes in Honduras are low (0.2–0.3%), but must be paid at the municipal office. Before closing, confirm the seller has no unpaid tax debt.
Keep your tax receipts for future resale or legal use.
Final Advice: Ask Questions & Take Your Time
Honduras offers real estate opportunity—but like any country, it has its own legal and financial rules. Take your time, ask questions, and get the right guidance before investing.
Ready to Buy in Honduras?
Our licensed real estate experts can guide you through every step of your purchase. Whether you’re buying your dream home, a vacation retreat, or a rental investment—we’re here to help.
