Roatan Real Estate FAQ: Your Questions Answered

How much does a house or condo cost in Roatan?

It depends a lot on the type of property and how close it is to the water. Roughly from cheapest to most expensive:

• Lots and small homes inland or on the East End are the most affordable way in.
• One-bedroom condos in towns like French Harbour, Sandy Bay or near Coxen Hole are the usual entry point for a finished home. Market reports put many of them somewhere in the low-to-mid $100,000s.
• Family homes with ocean views sit in the middle of the market, often several hundred thousand dollars.
• Beachfront condos in West Bay and waterfront villas are at the top, and can reach well into seven figures.

Treat any average you read online with caution. Roatan has no public database of closing prices, and asking prices can be far from what a property actually sells for. The best way to get a feel for real values is to compare several listings in the same area, then ask an agent or appraiser what similar homes actually sold for. Our Roatan properties for sale are a good place to start comparing.

Can foreigners buy property in Roatan?

Yes, and thousands of North Americans and Europeans already own homes here. But there’s a catch worth understanding. The Honduran Constitution (Article 107) restricts foreign ownership of land on the islands and near the coast and borders. The main exception is Decree 90-90, which allows a foreigner to own one residential property of up to 3,000 square meters (about three-quarters of an acre) in those zones, as long as the area qualifies and certain conditions are met. Larger properties, or several of them, are usually bought through a Honduran corporation or under an approved tourism project.

And the details matter. Whether a specific lot qualifies depends on its location, its registry file and how the purchase is structured, so this is a question for your own attorney, not the seller. We explain the rules in more depth in Can foreigners buy property in Honduras?

How do I check a Roatan property title?

Have your own Honduran attorney do a full title search at the Property Institute (Instituto de la Propiedad) before you pay any deposit. A proper check confirms who the registered owner is, traces the history of the title, and looks for mortgages, liens, lawsuits or other annotations. Your attorney should also confirm that municipal property taxes are paid, that the survey matches what’s on the ground, and that the property has legal road access.

On Roatan there are a few extra things to look at: older properties sometimes come from untitled land or “dominio útil” rights that were converted later, boundaries between neighbors aren’t always clear, and condos have their own regulations and possible HOA debts. Title insurance is not common here the way it is in the US, which makes this check even more important. Our step-by-step guide on how to check a property title in Honduras explains what to ask for and the warning signs.

What are closing costs in Roatan?

A common rule of thumb is to budget around 4% to 6% of the purchase price, though the real figure depends on the price, the property and who pays what. The main items are:

• Transfer tax: 1.5% of the value of the property, according to the Honduran tax authority (SAR) guidance.
• Property registry fees for recording the deed.
• Attorney and notary fees: in Honduras the notary is a lawyer, and fees are often a percentage of the price, sometimes with a minimum. They vary quite a bit from one professional to another.
• Extras like a new survey, appraisal, certified translations, or the costs of setting up a corporation if you buy through one.

Who pays which cost is negotiable, so write it into the purchase agreement. And ask your attorney for a written estimate for your specific property before you sign anything. That way there are no surprises on closing day. For the full process, see our guide to buying property in Roatan.

What are HOA fees in Roatan and what do they cover?

If you buy a condo or a home in a gated community, you’ll pay a monthly or yearly fee to the homeowners’ association. What it covers changes a lot from one development to the next, which is why two condos at a similar price can have very different fees. Typical items include:

• security guards and gate control;
• maintenance of roads, gardens, pools, docks and common areas;
• insurance of the building or common structures;
• water service and, in some developments, a backup generator;
• garbage collection and administration.

Before you buy, ask for the community regulations, the current fee, the last financial statements or budget, and a letter confirming that the unit has no unpaid fees. It’s also worth asking whether a special assessment is planned, for example for a roof, a seawall or a new generator. A well-run HOA protects the value of your property. A poorly run one, with many owners behind on payments, can become a real headache.

What is Próspera, and what is its legal status?

Próspera is a private development on Roatan, near Crawfish Rock, that was set up under Honduras’s ZEDE law (Employment and Economic Development Zones). That 2013 law let these zones have their own rules and administration. The facts, as of this writing:

• In April 2022 the Honduran Congress repealed the ZEDE law.
• In September 2024 the Supreme Court declared the ZEDEs unconstitutional.
• Próspera’s developers have filed an international arbitration claim against Honduras at ICSID (the World Bank’s investment dispute center), which is still pending.

Próspera continues to operate on the ground, and how the court ruling and the arbitration will play out is still uncertain. If you are considering buying property in or next to Próspera, get independent legal advice from a Honduran attorney who has no connection to the project, and ask specifically how the title is registered and what would happen to it under different outcomes.

Hurricanes and insurance: how risky is Roatan?

Roatan sits in the western Caribbean, so hurricane risk is real, but direct hits on the island have been fairly rare. The big one people still talk about is Hurricane Mitch in 1998. It stalled for days between the mainland and Guanaja and devastated that island; Roatan was damaged too but came through much better. In 2020, Eta and Iota caused terrible flooding on mainland Honduras, while on Roatan the effects were mostly heavy rain, landslides and power and internet outages for a few days.

What does that mean for buyers? Look at how a house is built: reinforced concrete, a solid roof, good drainage, hurricane shutters and a location above flood level count for a lot. Hurricane season runs from June to November.

Property insurance, including windstorm coverage, is available from Honduran insurers, though premiums and deductibles for hurricane damage can be higher than you’d expect. Ask for quotes before you close, and read what’s excluded.

Electricity, water and internet in Roatan: what to expect

Electricity on most of the island is supplied by RECO, a private utility regulated by the national energy regulator (CREE). Power is generated on the island, largely from imported fuel, so rates are well above what most North Americans pay and they move with fuel prices. Outages happen, sometimes short, sometimes longer after storms. Many owners add solar panels, a generator or a battery backup, and it’s smart to ask a seller for a year of bills.

Water comes from different sources depending on the area: municipal or community systems, private wells, water companies, rainwater catchment and, in some developments, desalination. Ask exactly where a property’s water comes from, how much storage it has (a cistern is normal), and whether supply is steady in the dry season.

Internet has improved a lot. Fiber and cable service are available in many populated areas, and Starlink has been available in Honduras since late 2023, which has been a game changer for homes outside the main towns. Test the actual speed at the house before you buy, especially if you work remotely.

Can I rent my Roatan property to tourists, and what taxes apply?

Yes. Short-term rentals are common on Roatan, and many owners cover part of their costs this way, especially in West Bay, West End and other areas popular with visitors. A few things to keep in mind:

• Check the HOA or community rules first: some developments limit or forbid short-term rentals.
• Rental income is generally subject to Honduran income tax, and lodging can be subject to sales tax and a tourism tax. How these apply to a private vacation rental, and what registration is required with the municipality and the Honduran Tourism Institute, is something to confirm with a local accountant.
• Unless you live on the island, you’ll need a reliable property manager, which usually costs a percentage of rental income.

Be realistic about occupancy: there’s a high season (roughly winter and spring) and quieter months. For numbers, management and what makes a rental successful, read our guide to Roatan vacation rental investment.

How do I get residency in Honduras as a property owner?

Owning property in Honduras does not, on its own, give you residency. Most foreigners on Roatan stay as tourists (with periodic extensions or exits) or apply for residency under one of these categories:

• Pensionado (retiree): for people with a stable pension from abroad, commonly cited at a minimum of US$1,500 a month.
• Rentista: for people with steady passive income, such as rentals or investments, commonly cited at a minimum of US$2,500 a month.
• Investor: for people who invest in a business in Honduras; the requirements depend on the investment and should be checked case by case.

Applications are filed through a Honduran attorney and include documents such as a criminal background check (apostilled), a medical certificate and proof of income. Expect the process to take several months. Requirements and fees are updated from time to time, so confirm the current rules with an immigration attorney or the National Migration Institute (INM) before you start gathering paperwork.

How do I get to Roatan?

Easier than many people think. Roatan’s international airport (code RTB) has nonstop flights from several US hubs, typically including Houston, Atlanta and Miami, with others such as Dallas added seasonally. In winter there are also nonstops from Canada, like Toronto, and from some northern US cities. Flight times from Houston or Miami are around two hours. Airlines and schedules change by season, so check current routes before you plan a trip.

You can also fly into San Pedro Sula, Tegucigalpa or La Ceiba on the mainland and connect on a short domestic flight. Or take the ferry from La Ceiba: the crossing takes roughly an hour and a quarter to an hour and a half, with sailings usually twice a day, weather permitting. For owners, good air access matters. It makes it easier for family to visit, for renters to book, and for you to come and go.

Should I use a real estate agent in Roatan?

For most foreign buyers, a good agent is worth it, especially on a first purchase. Roatan has a multiple listing service (MLS) used by many local brokers, so an agent can show you a wide range of properties and help you compare prices in an area. Real estate agents aren’t licensed in Honduras the way they are in the US or Canada, though, so choose carefully: ask for references, how long they’ve worked on the island, and whether they’re part of the MLS.

Buying directly from an owner can also work well, and it’s common here. In either case, the agent is not your lawyer. Your own attorney should check the title and handle the money and the deed. We compare both options, with their pros and cons, in Real estate agent or for sale by owner?