The Ultimate 2025 Guide
Over the years, Honduras has welcomed a steady flow of international buyers, especially from the United States, Canada, and Europe, who come here looking for something more peaceful, more affordable, and freer.
While some expats buy a small condo by the beach in the Bay Islands. Others fall in love with the mountains or open farmland in the mainland. And many of them, perhaps like you, are ready to build something real: a life, a retreat, a business, or even a legacy.
But let me be very honest: the biggest risk when buying property in Honduras isn’t the location or the price. It’s the legal structure. And most foreigners don’t realize this until it’s too late.
I’m a Honduran attorney who has helped many expats not only buy land but also keep it. I’ve also seen smart, well-meaning people lose everything they thought they owned. My goal in this article is not to scare you. It’s to prepare you.
Key Takeaways for Foreign Buyers
- Foreigners cannot directly own land over 3,000 sq. meters or within 40km of coasts or borders.
- A Honduran corporation is the legal solution but is risky if structured incorrectly.
- Never rely on verbal trust; shareholder agreements are essential for protection.
- Properly structured property investment can be a path to Honduran residency.
Can Foreigners Legally Buy Property in Roatan?
Yes, foreigners can buy property directly, as long as a few conditions are met:
- The land is not within 40 kilometers of national borders or coastlines.
- The land is urban and the lot is 3,000 square meters or less (approximately 0.74 acres).
- The use of the land is residential and for personal ownership.
This is usually not a problem for buying a house in town or a small lot. But once the property is coastal, rural, or larger than 3,000 square meters, the rules for foreign ownership of land in Honduras change.
In those cases, the only way for a foreigner to acquire that land is by forming a corporation in Honduras (Sociedad Anónima or S. de R.L.) and having that corporation appear as the buyer.
And this is where the legal problems often begin.
Who Owns the Corporation for Your Roatan Property?
Here’s a common and dangerous scenario.
An American or European buyer wants to purchase 20 acres near the coast. They are correctly told they need to form a Honduran corporation. They are also often told that the shareholders must be Honduran citizens to own land in the restricted zone.
So they go ahead and:
- Create a corporation (Sociedad Anónima).
- Appoint two or more Honduran citizens as shareholders, often their attorney or a local partner.
- Name themselves (the foreign buyer) as the company’s legal representative (Representante Legal).
They buy the land. They pay for it. They build on it. But legally, they don’t own it. The corporation does. And the corporation belongs to its shareholders, not its legal representative.
What are the Hidden Risks of Using Local Shareholders?
Let’s be real: most foreigners trust their attorney or local partner. They believe that as long as they’re the Representante Legal, they’re in control.
But here’s what can and often does go wrong according to Honduras real estate laws:
- The Honduran shareholders can legally vote to remove you as the legal representative at any time.
- They can sell shares or vote to sell the land without your consent, especially if they hold majority control.
- If a dispute arises, you’ll be in civil court trying to prove you were the real investor, even though your name isn’t on the shareholder list.
The civil courts here are full of litigation where foreigners try to reclaim land they lost because of poorly structured corporations.
How Can You Protect Your Investment as a Foreigner?
Forming a corporation is the right solution, but it must be done with proper safeguards. Here are some of the ways I help clients secure their property rights:
1. Structure the Corporation with Ironclad Agreements You may be required to use Honduran shareholders, but that doesn’t mean you can’t have written agreements in place that:
- Clearly define your financial investment.
- Restrict the transfer of shares without your approval.
- Protect your role as the sole legal representative.
2. Notarize and Register All Internal Agreements Private agreements between you and the shareholders must be notarized to give you legal standing in case of a dispute. Many foreigners skip this step and are left with no documentation to protect themselves.
3. Use the Corporation for More Than Just Land Ownership A properly formed corporation can also be used to:
- Apply for investor residency in Honduras.
- Employ staff and manage business projects.
- Use the land as business collateral if needed.
You may not own the land in your personal name, but you can secure your control and benefit from it fully.
What About Condominiums and Inheritance?
Many foreigners choose to live in condominiums, which are governed by horizontal property law. But what happens when the owner passes away? If there is no valid Honduran will, heirs may face long delays and legal complications.
I’ve assisted many families with:
- Obtaining declarations of heirs (declaratoria de herederos).
- Transferring property titles.
- Resolving condominium and HOA disputes.
Drafting a valid will in Honduras is often the most effective step you can take to protect your family’s inheritance.
Final Thoughts: Invest Safely by Doing It Right
I love seeing foreigners build something meaningful in Honduras. This country has so much to offer, but you have to protect your investment with the right legal foundation. Before you sign anything or transfer money, talk to an attorney who understands the system in depth.
In Honduras, owning property is not just a transaction. It’s a process, and one you can walk with confidence.
Need Legal Help in Honduras?
You deserve to live your dream here and keep it protected. I can assist you with:
- Property title verification and legal due diligence.
- Safe corporate structuring for foreign buyers.
- Drafting Honduran wills and handling inheritance.
- Condominium law and HOA disputes.
- Investor residency and immigration strategies.
If you’re ready to invest safely, let’s work together to make sure your future in Honduras is everything you hope for and nothing you regret.
