Who pays what
On Roatan the buyer pays the closing costs and the seller pays the capital gains tax and the commissions. Plan on about 5 to 6 percent of the purchase price for closing costs, plus corporation fees or mortgage costs if they apply. Everything is paid at closing.
Your title
The closing happens only after your attorney completes the title opinion and confirms the property has a fully valid title with no open questions. Any issue on the seller’s side has to be resolved first. Your registered title arrives about 6 to 9 months after closing.
Property taxes
- A good rule of thumb is about $4 a year for every $1,000 of property value.
- Taxes are due each August at the municipal office in Coxen Hole or Oak Ridge.
- Pay between January and March and you get a 10 percent discount.
- Tax is based on the deeded value or the municipal (catastral) value, whichever is higher.
When you sell
Under the Bay Islands’ tourism free zone law, capital gains tax here is 4 percent of your provable net profit. You can deduct what you paid, your closing costs, permanent improvements, property taxes and commissions, so keep your receipts and building contracts.
Shipping your things
Customs duties on household goods typically run from 15 percent to 40 percent or more, which is worth weighing before you ship large items. Retirees with residency can apply for tax exemptions on household goods and a vehicle.
This guide is general information, not legal or tax advice. Laws and fees change, so confirm the details with a Honduran attorney.