Income tax: Foreign residents living on their foreign income, including pensions, are not subject to income taxes. Only the income earned in Honduras will be taxed. Personal income tax rates run from 10% to 20% with the employer held responsible for collecting all income taxes. Business income tax is 25% on annual profits.
Capital gains tax: Capital gains earned by non-residents from selling real estate located in Honduras are taxed at a fixed rate of 10%.
Sales tax: The sales tax rate in Honduras is 15% and 18% on tobacco and alcohol sales.
Customs Duties: There is a 25% (plus or minus) selective tax levied on all goods imported to Honduras.
Property tax: Property is taxed at approximately $4 for every $1,000 in value according to the deed or catastral value, whichever is greater. The catastral value is determined by the municipal government and can be adjusted every five years. Property taxes are due in August each year, but if they are paid in January or February a 10% discount is offered.
