Roatan Real Estate by Ralph Rivera



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 the opposite.

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 permits required?
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 costs?
Answer: Construction costs generally range from $65.00 to $130.00 per square foot. It is dependant on the materials used.

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 on Roatan?
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 or homes. - Roatan Real Estate