How to Buy Property in Roatan as a Foreigner (2025 Guide)

Buying property in Roatan, Honduras is a dream for many — whether you’re seeking a beachfront villa, an investment rental, or a full-time island home. The process is surprisingly straightforward for foreigners, but there are key steps and legal requirements to understand before making a purchase. This guide breaks it all down in a simple, conversational way.

Why Foreigners Choose Roatan

Roatan attracts international buyers for a few big reasons. Compared to other Caribbean destinations like the Bahamas or Cayman, prices here are far more accessible. Add to that a strong tourism market that keeps vacation rentals in demand, and you’ve got great investment potential. Most importantly, the laws are friendly to foreigners, giving you the same rights as locals with just a few limitations.

Step 1: Understand Ownership Laws

As a foreigner, you can own up to 0.72 acres (3,000 m²) in your own name without any hassle. If you want something larger, you’ll need to set up a Honduran corporation. This involves working with an attorney to create the company, a process that usually takes a few weeks. Once formed, the corporation can legally hold larger properties, but it also comes with ongoing requirements like annual filings and small administrative fees. Properties in Roatan are deeded — leaseholds are not part of the system here. Verifying the title is always the first and most important step.

Step 2: Set Your Goals & Budget

Before you start browsing listings, get clear on what you’re really looking for. Do you want a vacation home that you can rent out when you’re away? Or is this about securing an income-generating investment? Maybe you’re ready to relocate full-time and want a place close to schools and amenities. Once you know your goals, it’s easier to set a budget. Remember to include not just the purchase price but also closing costs and ongoing expenses.

For example, on a $200,000 property you should expect:

• Closing costs: $10,000–$14,000 (including legal fees, transfer taxes, title registration, and setting up a corporation if needed)

• Annual property taxes: depend on the municipality. In West End, the rate is about $4.20 per $1,000 of value (so a $100,000 property pays $420). On the East End, it’s about $2.50 per $1,000 of value (so a $100,000 property pays $250).

• Insurance and maintenance: varies, but always plan for storm protection and upkeep

Step 3: Work With Trusted Professionals

The right team makes all the difference. A local real estate agent — like The Roatan Real Estate Team — can help you navigate neighborhoods and negotiate smartly. We also coordinate directly with the attorney, surveyor, and catastral department on your behalf, so most clients only need to arrive for closing. Having this support means the process is streamlined and stress-free.

Step 4: Search & View Properties

This is where the fun begins. You can start your search online, but nothing beats walking through a home in person or seeing it on a well-done virtual tour. If you’re exploring different areas, think about the lifestyle each offers:

Step 5: Make an Offer & Do Your Homework

Once you find the right place, it’s time to make an offer. Your Roatan real estate agent will guide you through negotiations and help you include important contingencies like title verification and inspections. From there, your attorney runs a title search, confirms the survey, and ensures everything is in order before you finalize the purchase agreement.

Step 6: Closing the Deal

Closing in Roatan is a straightforward process that usually takes 30 to 60 days. Here’s a simple timeline overview:

1. Week 1–2: Make an offer and sign a preliminary agreement

2. Week 2–4: Due diligence (title search, survey, legal review)

3. Week 4–6: Finalize purchase agreement and prepare funds

4. Week 6–8: Closing, title registration, and handover of keys

Once you’ve paid the purchase price and closing costs, your attorney registers the title with the Honduran government. Then comes the best part — getting the keys and stepping into your new island property.

Financing Options

Most transactions in Roatan are cash-based, but there are alternatives. Some sellers offer owner financing, where you pay in installments over time. Local banks may provide mortgages, though interest rates are higher and down payments larger than what foreigners are used to. Many buyers also explore financing through lenders in their home countries if available.

Key Tips for Foreign Buyers

A few simple precautions will make your experience stress-free:

• Always verify title history before putting money down.

• Budget for closing costs, HOA fees (if applicable), and insurance.

• Work only with professionals who have proven experience in Roatan real estate.

Frequently Asked Questions

Can foreigners get residency in Honduras?

Yes, there are several residency options available depending on your situation, including retirement residency and investor residency.

What about inheritance laws?

Honduras follows civil law. It’s wise to structure your property ownership with an attorney’s help to ensure your heirs are protected.

Are there restrictions on renting to tourists?

No. In fact, many owners rent their properties short-term through Airbnb or long-term to expats. Just make sure to comply with local tax requirements.

What if I already own 0.72 acres and want more?

You’ll need to purchase additional land through a Honduran corporation. This structure allows you to hold more than one property or larger tracts of land.

Before You Buy: A Quick Checklist

• Define your goals and budget

• Work with a trusted agent and attorney

• Verify the property title and boundaries

• Understand closing costs and taxes

• Explore financing if needed

• Plan for insurance and maintenance

What Our Clients Say

“The Roatan Real Estate Team and Margot have been there for us every step of the way — from finding the right property to closing, and even helping us connect with a contractor. We arrived as clients, but we truly feel like we left with friends.”

— Paul & Carole Roy

Final Thoughts

Buying property in Roatan as a foreigner is not only possible but also rewarding when you approach it with the right guidance. The island offers transparent laws, affordable taxes, and a growing market that makes it one of the most attractive Caribbean destinations for investment.

📥 For deeper insights and a comprehensive walkthrough, download our Ultimate Guide to Buying Property in Roatan.

👉 Ready to take the next step? Explore current listings at RoatanRealEstate.com/properties or schedule a consultation with Margot Halliday, the island’s most trusted broker.