Honduras Capital Gains Tax Guide 2026

Overview — CGT Treatment in Honduras

Honduras integrates capital gains into the ordinary income tax system under the Ley del Impuesto Sobre la Renta. There is no separate capital gains schedule. When a person disposes of a capital asset, any gain is added to their other income and taxed at the applicable marginal rate. For individuals, this means progressive rates from 10% to 25%. For companies, the standard 25% rate applies. A chargeable gain arises on the disposal of assets including real property, shares, bonds, business assets, and other capital assets. Disposal includes sale, exchange, gift, or transfer.

Calculation of Chargeable Gain

The chargeable gain is calculated as: Proceeds from disposal minus (Acquisition cost plus incidental costs of acquisition and disposal plus capital improvements). Allowable costs include the original purchase price, legal fees, registration costs, notary fees, and capital enhancements. Only expenditure wholly and exclusively incurred for the acquisition or enhancement of the asset qualifies. The gain must be reported in the tax year in which the disposal occurs. Capital losses may be offset against capital gains in the same year; unrelieved losses may be carried forward for up to 4 years.

Principal Residence Exemption

Gain from the disposal of an individual's principal residence may be exempt from income tax, provided the proceeds are reinvested in another principal residence within a specified period (typically 1 year) and the property was occupied as the main home. Partial relief is available where only part of the proceeds are reinvested or where the property was used partly for business purposes. Additional residences and investment properties are fully chargeable.

Property & Real Estate Gains

Gains from the disposal of real property are included in ordinary income and taxed at progressive rates. A withholding tax may apply on property transactions where the purchaser is required to retain a percentage of the purchase price and remit it to SAR as an advance payment against the vendor's final ISR liability. The rate of withholding depends on the type of vendor (individual or company) and the nature of the property.

FAQs

How is the gain calculated on property sales?

The gain is the sale price minus the original purchase price, plus costs of acquisition (legal, registration, notary) and capital improvements. Example: Buy land for HNL 1,000,000, sell for HNL 1,500,000, costs HNL 50,000. Gain = HNL 450,000, taxed at marginal ISR rate.

Can I offset capital losses against other income?

Capital losses can only be offset against capital gains in the same year. Excess losses may be carried forward up to 4 years but cannot offset salary or business income.

What assets are exempt from CGT?

Principal residence (with reinvestment), assets transferred on death (no deemed disposal), and certain government securities may be exempt or subject to special treatment.

Disclaimer

This guide provides general information about Honduran capital gains tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Honduran tax advisor or the Servicio de Administración de Rentas for advice specific to your situation. InvestmentKit does not provide tax advice.