A line-by-line breakdown of the 5–6% you budget at closing and the surprisingly small annual bill that follows.
01The headline number
Budget roughly 5–6% of the purchase price for all-in closing costs in Roatán. That figure covers the transfer tax, notary and registry fees, legal fees and, where purchased, title insurance. On a US$600,000 villa that is about US$30,000–36,000.
By contrast, annual holding costs are among the lowest in the Caribbean — a point that fundamentally changes the retirement math compared with Florida, Arizona or coastal Europe.
02Closing costs, line by line
Transfer tax (Impuesto de Tradición) is 1.5% of the declared value, paid by the buyer. Notary fees for drafting and authenticating the public deed generally run 1–2%. Property registry fees are a small fixed schedule. Independent legal counsel — which we insist on — is typically 1–1.5%.
If you acquire through a Honduran corporation (common for lots over 3,000 m²), add the company formation and annual maintenance costs. Title insurance from an international underwriter, when available, is a one-time premium of well under 1%.
03Annual property tax
Roatán's municipal property tax (Impuesto sobre Bienes Inmuebles) is assessed on the registered cadastral value, not the market price, at a rate measured in fractions of a percent. In practice, luxury villas pay a few hundred to low thousands of dollars per year.
Payment is due annually to the Municipality of Roatán, with a discount for early payment. Our property-management team handles the filing for absent owners so no arrears ever accrue against your title.
04Ongoing costs to model
Beyond tax, retirees budget for HOA or resort dues (Pristine Bay and gated communities), homeowner insurance including named-storm coverage, utilities (electricity is the largest line item on the island), and property management if the home is rented while you travel.
We provide every client a twelve-month operating pro forma before an offer is written, so the true cost of ownership is never a surprise.
05Selling later: capital gains
When you eventually sell, Honduras applies a capital-gains tax on the profit, currently 10% for non-residents (withheld at closing) and reconciled within annual filings for residents. Proper cost-basis documentation at purchase — which our legal desk assembles — materially reduces that future bill.
Frequently asked
Who pays the transfer tax — buyer or seller?
By custom on Roatán the buyer pays the 1.5% transfer tax and registration; the seller pays their own legal fees and any capital-gains withholding.
Is the declared value always the purchase price?
It should be. Under-declaring to save on transfer tax is illegal and raises your future capital-gains bill. Ana's desk closes at full declared value without exception.
Are there taxes on rental income if I rent my villa out?
Yes — rental income earned in Honduras is taxable locally. Most owners operate through a registered entity and pay a simplified rate; our analysts model this in the yield projection.
Can I pay property tax from abroad?
Yes. Our property-management director files and pays on behalf of dozens of absentee owners each year and sends the receipt for your records.
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