Roatan Property Taxes & Closing Costs Explained (2025 Update)
Loida Oyuela
October 5, 2025 · 7 min read
When buying property in Roatan, many first-time buyers are pleasantly surprised at how affordable ongoing ownership can be. But while annual property taxes are low, closing costs can feel higher than expected if you don’t budget for them. This updated guide walks you through what to expect in 2025, including examples, timelines, and practical tips.
Understanding Property Taxes in Roatan
Property tax rates in Roatan vary by municipality, so it’s important to know where your property is located. On the West End of the island, the rate is about $4.20 per $1,000 of value (so a $100,000 property pays $420 annually). On the East End, the rate is lower at about $2.50 per $1,000 of value (so a $100,000 property pays $250 annually).
Taxes are paid directly to the local municipality, typically on an annual basis. Some municipalities allow quarterly installments. Payments are generally made in Honduran lempira, though some locations may accept U.S. dollars. Paying late can result in penalties or interest charges, so it’s best to budget and pay on time.
Closing Costs: What They Include
Closing costs in Roatan usually range between 5–10% of the purchase price, depending on the property type and whether a Honduran corporation needs to be set up. These are due at the time of closing, when funds are transferred and ownership is officially registered.
Typical breakdown:
Cost Type | Percentage | What It Includes |
|---|---|---|
Attorney fees | 2–3% | Title search, contracts, registration |
Government transfer tax | ~1.5% | Tax on property transfer |
Registration fees | ~0.5% | Official property registration |
Survey & miscellaneous costs | 1–2% | Property survey and other fees |
Corporation setup | Included | If required for larger properties |
For example:
On a $200,000 purchase, expect $10,000–$14,000 in closing costs (including legal fees, transfer taxes, registration, and corporation setup if needed).
On a $400,000 purchase, budget $20,000–$28,000.
Payment timing: A deposit may be due at contract signing, but most costs are settled at closing. Your attorney and agent will provide a clear schedule of when each payment is required. Our team also coordinates directly with attorneys, surveyors, and the catastral department, so most clients only need to arrive for the closing itself.
Financing Impact
Most transactions are cash-based, but if you use financing (either through seller financing or an international lender), closing costs may include additional items like mortgage registration fees or bank charges. Some lenders also require escrow accounts for taxes and insurance, which means setting aside funds monthly instead of paying them annually.
Insurance Considerations
Insurance isn't mandatory but is strongly recommended. In Roatan, insurance is typically one comprehensive policy that covers everything: hurricane, flooding, fire, vandalism, and other hazards. Average costs vary by property type and value:
Comprehensive property insurance: $1,000–$2,500 per year depending on property value and coverage limits
Many insurers require certain upgrades (storm shutters, reinforced roofing) before granting coverage, so plan ahead.
Hidden Costs to Watch For
Beyond the expected expenses, some new owners are surprised by:
Utility deposits: For electricity, water, and internet service
Initial setup costs: Cable/internet installation, security systems
HOA initiation fees: Some communities charge one-time setup fees
Upgrades for insurance: Meeting hurricane safety standards
First-Year Total Cost Example
Here's what a $250,000 condo purchase might look like:
Cost Category | Amount |
|---|---|
Purchase price | $250,000 |
Closing costs (6%) | $15,000 |
Annual property tax (West End at $4.20/$1,000) | $1,050 |
Insurance | $1,500 |
HOA fees ($200/month) | $2,400 |
Basic maintenance & utilities | $2,000 |
Total first-year cost | $271,950 |
Quick Comparison: Roatan vs. Other Caribbean Destinations
Destination | Average Annual Property Tax | Typical Closing Costs |
|---|---|---|
Roatan | $2.50–$4.20 per $1,000 value ($250–$420 on $100,000) | 5–10% |
Bahamas | $7.50–$10 per $1,000 value ($750–$1,000 on $100,000) | 10–12% |
Cayman Islands | $10–$15 per $1,000 value ($1,000–$1,500 on $100,000) | 7–10% |
Barbados | $10–$20 per $1,000 value ($1,000–$2,000 on $100,000) | 10–12% |
Roatan real estate continues to stand out as one of the most affordable Caribbean markets for long-term ownership.
Final Thoughts
With clear property tax rates and closing cost expectations, buyers can plan their Roatan investment with confidence. While upfront costs can add up, ongoing ownership is refreshingly affordable compared to other Caribbean destinations. By working with an experienced local team, you’ll avoid surprises and enjoy a smooth path to property ownership.
👉 Want to see what your budget can get you? Explore current listings at RoatanRealEstate.com/properties or connect with Margot Halliday for expert guidance on buying in Roatan.
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