Roatan Dreams

Investing in Roatan, Honduras

Visitor FAQ | Buying Property FAQ | Retiring/Moving FAQ | Investing FAQ

Investing in Roatan offers a wide range of opportunity. Whether you’re simply looking for that perfect piece of paradise to call your own, or you have larger plans for a development or business, Roatan has much to offer.

From small residential lots to large, undeveloped parcels of 100 acres or more, existing homes or condos, new condos in the pre-construction pricing stage, water front or water view, private and secluded or in the heart of the action, your options are many.

Adding to the climate of increasing activity and opportunity is the recently approved Central America Free Trade Act, or CAFTA. While the details are still being hammered out at this time, the eventual result will be the elimination of most tariffs and duties on imported goods from both Central America and North America which will serve to reduce the cost of doing business here.

And there is strong support at all levels of the Honduran government for Roatan to be designated as a "free port" which in other similar places has served as a catalyst for rapid expansion of trade and banking industries.

Is the government of Honduras stable?

Honduras is a democracy headed by a popularly elected President. The current president is Ricardo Maduro, with elections coming up in November, 2005.

The 1982 Constitution has 3 governing branches, Legislative, Executive, and Judicial. The Legislative branch is represented by a National Congress of 82 elected deputies. The Executive branch consists of a President and his thirteen member cabinet of ministers. The Judicial branch makes up the country’s Supreme Court, in which the nine judges are appointed by the Congress and the President. All of these officials are elected for four year terms. The President and his cabinet appoint the governors of Honduras’ eighteen departments or states. I have not encountered any problems or opposition from the previous or current administration with our development plans. In fact, both parties strongly support foreign investment.

Can foreigners own land and hold a clear title?

Yes, but foreign investors, as individuals, can only purchase ¾ of an acre and must build within 3 years. You can own more land without building restrictions by forming a Honduran corporation. This can be a simple transaction by using a local attorney.

What utilities are available?

Most of the water is subsurface well water. I advise everyone to build a cistern to collect rain water to supplement the well systems. The electricity is provided by Roatan Electric Company, "RECO", and is distributed to the majority of the island. Sewage is handled by private septic systems in most cases. Generators and solar power are used in outlying areas on Roatan.

Are there medical facilities?

There are several clinics, two general hospitals on the island, and 2 decompression chambers for divers. Larger medical centers are available in San Pedro Sula and La Ceiba. Emergencies can be handled by air ambulance. Optometrists are located on the mainland.

How does the cost of living compare to the U.S.?

Life is simpler on Roatan and your needs are less. The prices of U.S. goods are higher as you might expect on an island, but local goods are very inexpensive. You can find most of your needs at the local grocery stores, produce markets and hardware stores. There is even an appliance store, lumber yard, and furniture store with U.S. goods. Maids, cooks, and gardeners wages average $7 US a day.

What is the cost of building?

The most common means of construction on Roatan is concrete blocks covered with stucco or native treated lumber. The roofing materials vary but clay tiles and composition shingles are the standard. Of course, your cost depends on your design but you can expect $65 to $200 per square foot depending on quality and finish. Most residential projects require 6-18 months for completion. There are reputable architects and builders available on Roatan to choose from. Architectural fees will vary with complexity and can run from 5% to 10%. Plans must be stamped by a Honduran registered architect.

Are there any restrictions and covenants on the building?

Numerous developments offer protective covenants and restrictions, but there are also many properties without such regulation. There are presently no meaningful zoning restrictions, but Roatan along with all the rest of the Bay Islands of Honduras are subject to guidelines for development instituted by Presidential Decree, the stated purpose of which is "to organize activities that have an effect on tourist, housing, commercial and industrial activities. This organization is based on the need to conserve the environment and to draw up a comprehensive plan for the territory, which is the determining elements for the consolidation of a high quality, diversified and sustainable development."

Are there any Rental Management Companies on Roatan for my home?

As of this time, there are several full service property management companies serving all of Roatan, Honduras.

How do I send larger items to Roatan and what does it cost?

There are two shipping companies servicing the island of Roatan: Jackson Shipping out of Tampa, and Hyde Shipping out of Miami, Florida. The cost of the shipping varies with weight and size as do the duty costs depending on the items. Many boats ship from Mainland Honduras ports to Roatan very inexpensively.

What about the education system?

There are several bilingual schools on the island and every town has its own public school through high school. Some students use tutors or correspondence courses that are accredited in the United States, and some families send their children to the U.S. or the mainland for their education. College education is usually completed in the U.S. or Honduras.

Can I work in Honduras?

Yes, with the proper work permits. If you have the management skills and investment capital to start a new business, there are many opportunities from which to choose. An attorney can help you acquire a business license and other pertinent documents.

How can I keep in touch and informed of life on Roatan?

The Bay Islands Voice is published monthly, hard copy and online.

Other publications include the Island Breeze, Honduras This Week, and various Spanish language newspapers from the Mainland.

Other Investment Information Sources

This U.S. Government agency maintains a worldwide list of projects needing investors:

Overseas Private Investment Corporation Opportunity Bank
1100 New York Ave., NW
Washington, DC 20527
202/336-8400, fax 202/408-9859

Desk officers at the Department of Commerce can provide investment information for many Caribbean countries:

Office of Latin America
U.S. Department of Commerce
International Trade Administration
Room H-3025
Washington, DC 20230
c/o Caribbean Basin Division
202/482-2527, fax 202/482-4726

Coopers & Lybrand, one of the U.S. "Big Six" tax and accounting firms, maintains offices on several Caribbean islands. Their main office can offer assistance:

Coopers & Lybrand
1800 M Street NW
Washington, DC 20036
202/822-4000

The Latin America/Caribbean Business Development Center in cooperation with the U.S. Agency for International Development publishes a monthly LA/C Business Bulletin which contains articles about Latin America and Caribbean countries as well as a listing of some current business opportunities. This is a free publication. To place your name on the list contact:

Editor, LA/C Business Bulletin
U.S. Department of Commerce, Room H-3203
Washington, DC 20230
or fax your request to: 202/377-2218