Honduras Investment Income Guide 2026

Overview — Investment Income Taxation

Honduras taxes investment income through a combination of final withholding taxes and inclusion in ordinary income. Dividends have a final withholding tax. Interest income from most sources is included in the individual's progressive ISR return. Capital gains are integrated into ordinary income with no separate rate. The Servicio de Administración de Rentas (SAR) administers all investment income taxation under the Ley del Impuesto Sobre la Renta.

Dividends — 10% WHT (Final for Residents)

Dividends paid by Honduran-resident companies are subject to withholding tax at 10% for resident shareholders. This is a final tax for resident individuals, meaning the dividend income is not included in the individual's progressive ISR assessment. For corporate shareholders, the 10% WHT is a creditable advance payment against their CIT liability. For non-residents, the dividend WHT rate is generally 10% (may be reduced under DTTs).

Interest Income

Interest income is taxed as ordinary income at progressive ISR rates for individuals and the standard CIT rate for companies:

• Bank deposit interest — included in annual ISR return, taxed at marginal rates
• Treasury bills & government bonds — interest subject to ISR at progressive rates
• Corporate bonds — interest included in ordinary income
• Foreign currency deposits — interest taxed as ordinary income

Interest income is aggregated with other income in the annual tax return. Withholding tax on interest may apply as an advance payment against the final ISR liability.

Capital Gains on Investments

As covered in the capital gains guide, gains from the disposal of investment assets (shares, bonds, mutual funds) are included in ordinary income and taxed at progressive ISR rates for individuals or 25% for companies. There is no preferential rate for long-term holdings. Gains from disposal of government securities may be subject to special treatment. Losses on investments may offset gains in the same year.

Mutual Funds & Collective Investments

Distributions from mutual funds and collective investment schemes are generally treated as investment income and taxed according to their nature (dividends or interest). Capital gains realised by the fund are passed through to investors and taxed in their hands. The Comisión Nacional de Bancos y Seguros (CNBS) regulates collective investment schemes in Honduras.

FAQs

Do I need to report dividend income on my tax return?

If you are a resident individual, the 10% WHT on dividends is final, so no further reporting is needed. Corporate shareholders should report and claim credit for the WHT.

Are foreign investment income and capital gains taxable in Honduras?

Yes, tax residents are taxed on worldwide investment income. Foreign dividends, interest, and capital gains should be declared. Foreign tax credits may be available under DTTs.

Can I claim a refund if WHT exceeds my tax liability?

Yes, where the WHT deducted exceeds the final tax liability, you can claim a refund from SAR by filing an annual return.

Disclaimer

This guide provides general information about Honduran investment income taxation 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.