← Guides / Honduras

Honduras Property Tax Guide 2026

Property taxation in Honduras is primarily at the municipal level. Municipalities levy an annual property tax (Impuesto de Bienes Inmuebles) at approximately 0.5% of the assessed value of land and buildings. There is no separate national property tax. When property is sold, capital gains are included in ordinary income and taxed at progressive ISR rates. Property registration and transfer costs include stamp duty and notary fees.

Overview — Property Taxation in Honduras

Property taxation in Honduras is primarily a municipal responsibility. Each of Honduras's 298 municipalities levies an annual property tax on real estate within its jurisdiction. The tax is based on the registered value of the property in the municipal cadastre. The national government does not impose a separate property tax. The Impuesto de Bienes Inmuebles (IBI) is the main property tax, typically around 0.5% of the assessed value. Property owners must register their properties with the municipality and update the registered value periodically.

Municipal Property Tax — ~0.5%

The municipal property tax is levied annually at approximately 0.5% of the assessed value of the property. The assessment is based on the cadastral value as determined by the municipal valuation department. Properties are categorised by use (residential, commercial, industrial) and location. Payment is made to the municipal treasury, often in annual or semi-annual instalments. Default attracts penalties and interest. Some municipalities offer discounts for early payment. The revenue funds local services including infrastructure, waste management, and public lighting.

Property Transfer Costs

When buying or selling property in Honduras, several costs apply:

  • Municipal transfer tax — typically 1–3% of the property value
  • Notary fees — approximately 1–2% of the property value
  • Property registration — fees for registering the transfer at the Property Registry (Registro de la Propiedad)
  • Legal fees — typically 2–5% of the property value
  • Valuation fees — for mortgage or insurance purposes

Total transaction costs typically range from 5% to 10% of the purchase price. These costs may be added to the cost base for capital gains purposes on eventual sale.

Capital Gains on Property

As covered in the capital gains guide, gains from property disposal are included in ordinary income and taxed at the owner's marginal ISR rate (10–25% for individuals, 25% for companies). A withholding tax may apply at the point of sale, where the purchaser retains a percentage of the price and remits it to SAR as an advance payment. The principal residence exemption applies when proceeds are reinvested in another principal residence.

FAQs

Do I pay property tax if I own a house but live abroad?

Yes, municipal property tax is payable regardless of the owner's residency. Non-resident owners should appoint a local agent to handle payments.

How is property value assessed for municipal tax?

Municipalities use cadastral values determined by their valuation departments. Revaluations occur periodically. Property owners can request a review if they believe the assessment is incorrect.

Are there tax incentives for property development?

Honduras offers some incentives for real estate development, including tax exemptions for affordable housing projects and zone-specific incentives in tourism development areas.

Disclaimer

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

Related Guides

Peru Tax Residency Guide (183-Day Rule, Domiciliado vs No Domiciliado, Center of Interests 2026)Peru tax residency rules for 2026 — the 183-day presence test (any 12-month period), the domiciliado vs no domiciliado classification, the center of interests test, and the tax obligations based on thBahrain Personal Tax Guide 2026 — 0% Income TaxBahrain has 0% personal income tax. No tax on salaries, wages, or self-employment income.Bahrain Capital Gains Guide 2026 — 0% CGTBahrain has zero capital gains tax for individuals and companies. No tax on sale of shares, real estate, or other assets. No securities transaction tax.Belarus Capital Gains Tax Guide 2026 — CGT Included in IIT at 13%Belarusian capital gains tax. Capital gains are included in ordinary income and taxed at the flat 13% IIT rate for individuals. Companies pay 20% CIT on gains. Exemptions for long-term holdings of shaCuba Tax Residency Guide 2026 — 183-Day Rule, Permanent Home, Source RulesCuban tax residency. 183-day physical presence test for individuals. Permanent home criterion. Source of income rules. Limited double tax treaties with Spain, China, Russia, and others. Residency certBarbados Corporate Tax Guide 2026 — CIT 30% Standard, 5.5% Small CompaniesBarbadian corporate income tax. CIT 30% standard rate, 5.5% for small companies (turnover < BBD 2M), international business regime phased out, capital allowances, and compliance for 2026.
Browse all guides →