Frequently Asked Questions Regarding Real Estate on Roatan
Question 1. What impact do tropical storms or hurricanes
have on the island/land?
Answer: Roatan like any island is impacted by tropical
storms, but fortunately because of its unique location, hurricanes
are a rarity. The last major hurricane to strike Roatan was the
Hurricane Mitch in October of 1998. The damage other than dock damage
was centered in Punta Gorda and that was mainly due to sub standard
construction. The worldwide press reported that Roatan sustained
major damage throughout the island but the truth was in fact quite
Question 2. What are the financial options when
buying a piece of land?
Answer: You have the option of trying to arrange
financing on your investment here on Roatan. Some sellers will consider
this and work out arrangements with you. Others will not. If your
home in your country of origin is almost paid for then a home equity
loan is an option. Other than that, your remaining option is to
put in a cash offer.
Question 3. If it's undeveloped land are building
Answer: Whether land is developed or not, permits
must be obtained from the local Municipal government. These are
usually and most successfully obtained by your builder or contractor.
Question 4. What is the range of construction
Answer: Construction costs generally range from
$65.00 to $130.00 per square foot. It is dependant on the materials
Question 5. What materials are used for building
and what are the benefits of using one material over the other?
Answer: Wood and cement block are the two main
materials used on Roatan. Each has its own benefits.
Question 6. How important is it to have access
to a property I purchase?
Answer: Access of some sort must be had in order
to get to a property, albeit road access or water access. Make sure
that access is deeded and registered and part of your final document
when buying land.
Question 7. Are property taxes expensive on Roatan?
Answer: Property taxes will vary depending on where
on the island the property is located but in general, property taxes
are very low on Roatan.
Question 8. Where is the most desirable land located
Answer: Depends what you are looking for. The East
side of the island offers beautiful lots and tends to be a bit more
remote. There’s not as much infrastructure on that side of
the island. The West side of the island offers more restaurants,
bars, dive shops, gas stations etc. Both sides of the island have
incredible view lots as well as amazing beach front lots.
Question 9. Is it safe to purchase property on
Roatan as a foreigner?
Answer: Buying property in Honduras as a foreigner
is very safe and entirely legal. As a foreigner you may buy up to
3000 square meters or approximately .72 acres on a one time basis in
your own name. If the size exceeds .72 acres or you want to purchase
more than once then you may form a Honduran corporation through your
attorney here and buy any amount of land you wish. In terms of political
stability, Honduras boasts a fully democratic government. The last
military rule ended in 1982.There are two political parties in Honduras,
the nationals (blue) and the liberals (red).
Question 10. How much are closing costs and do
they include attorneys fees?
Answer: The average closing cost is approximately
4.5% to 5.0% of the purchase price and includes your attorneys fees.
Question 11. Are there capital gains taxes in Roatan?
Answer: As a result of the new duty free port status,
there is a 4 percent capital gains tax owed by all sellers of properties