Constitutional Article #107:
State, Municipal or Private Properties situated along neighboring countries or coastlines of both seas in an extension of 40 km towards the interior of the country, including islands, cays, reefs, rocks and sand banks, may only be acquired, possessed or held at any title by Hondurans by birth, corporations formed entirely by Hondurans, and, government institutions, under penalty of nullity of the act or contract.
The acquisition of urban properties located in the limits indicated in the above paragraph shall be subject of a special legislation.
(Congress Decree 90-90)
Property registrars are forbidden to record documents that contravene these dispositions.
Legislation Overview – Permissibles Congress Decree # 90-1990
- 3,000 m/2 for Residential Purposes in a Foreigner’s Name (approx 0.72 acres)
- Improvements (Residency) to be made in 3 years from purchase.
- Larger areas for tourism projects with authorization from the Honduran Institute of Tourism Interpretation and Notes:
- 2 individuals may Not buy more land jointly however they may divide a larger piece into two adjoining pieces as long as neither exceeds 3,000 m/2;
- The Improvements Building condition is not regulated;
- For larger areas, even if for tourism projects, we recommend the use of a corporate structure.
Corporate Structures
What if you want to buy more than 3,000m/2? From Constitutional Article # 107 we know that any one of the following 3 elements are required to acquire land in excess of what allowed by congress Decree # 90-90 (3,000 m/2):
- To be a Honduran by Birth;
- A Corporation formed entirely by Honduras;
- Government Institution. 1&3 are NOT options for non-Hondurans.