San Pedro Sula

Salary from a foreign employer or fees from foreign clients

Taxed0%–25% progressive

The territorial principle does not exempt work done from Honduras. The Income Tax Regulation (Article 9) says income from work is Honduran-source when the service is performed or the work is done in Honduras, and the law taxes non-residents on Honduran-source income from services rendered in the country, whoever pays and from wherever (Ley del Impuesto sobre la Renta, Article 4). So a salary from a foreign employer or fees from foreign clients for work you do while living in Honduras are taxable. Residents pay the 2026 scale: nothing up to L228,324.32 a year, 15% to L348,154.10, 20% to L809,660.75 and 25% above (Acuerdo SAR-01-2026), after deducting up to L40,000 a year for medical and education costs without receipts (L80,000 over age 65) and, for freelancers, the proven costs of their profession (Article 13). No Honduran payer withholds the tax, so you register with SAR, file a sworn return between 1 January and 30 April for the previous year (Article 28) and, if you are not salaried, make quarterly advance payments by 30 June, 30 September and 31 December (Article 34). Before you become resident, Honduran-source pay of a non-resident is taxed at 25% of gross (Article 5(3)), but that rule relies on withholding by Honduran payers and this profile found no SAR guidance on how it applies to a visitor paid from abroad. The law also reaches a resident's foreign-source income on its face (see passive income). Social security (IHSS) contributions and tax treaties were not verified here.

On the nomad visa

Honduras has no digital nomad visa. Visitors can stay up to 90 days, extendable under the immigration regulation (Ley de Migración y Extranjería, Article 20), and that stay has no tax status of its own: work done from Honduras is Honduran-source, and more than three months in a calendar year makes you resident. People living on foreign income usually apply for rentista residence (at least US$2,500 a month) or pensionado residence (a pension of at least US$1,500 a month), which exempt the income behind the permit but bar paid work (see regimes).

Dividends, interest, gains, rent and pensions from abroad

Not taxed

The Código Tributario of 2016 states that Honduras follows the principle of territorial income (Article 1(2)), and under the Income Tax Regulation capital income is Honduran-source only when the capital is located in Honduras, and share gains only for companies incorporated under Honduran law (Article 9). Dividends and interest from foreign payers, rent from property abroad and gains on foreign assets are therefore outside the tax. Pensions and retirement benefits are not part of gross income wherever they come from (Ley del Impuesto sobre la Renta, Article 10(h)). The catch: Article 2 of the Income Tax Law, still in SAR's 2025 consolidated text, and Articles 7 and 11 of the 1969 Regulation say residents are taxed whether the source is inside or outside the country. This profile follows the later territorial rule in the Code but found no SAR ruling that resolves the conflict. Honduran investments are taxed: dividends at a final 10% withheld by the company (Article 25) and capital gains at a single 10% instead of the progressive scale (Article 10). Rent from property in Honduras goes on the progressive scale. The rate on Honduran bank interest for residents was not verified here, and the law has no specific rule for crypto-asset gains.

Net wealth and inheritance

No wealth taxNo inheritance tax

There is no net wealth tax on individuals. The Ley de Gravámenes sobre Herencias, Legados y Donaciones was repealed by Article 56 of the Ley de Equidad Tributaria (Decreto 51-2003, La Gaceta of 10 April 2003), and the value of inheritances, legacies and gifts is not income (Ley del Impuesto sobre la Renta, Article 10(d)). Municipalities charge an annual property tax of up to L3.50 per thousand of the cadastral value of urban property and up to L2.50 per thousand for rural property (Ley de Municipalidades, Article 76). Buying property also triggers a transfer tax and registry fees, whose current rates this profile did not verify.

Tax resident after

90 days a year

Top income tax rate

25.53%

When you become tax resident

The Income Tax Regulation (Acuerdo 799 of 1969, Article 15) treats you as resident if you stay in Honduras more than three months in the calendar year, roughly 90 days, besides other cases set by law. The Income Tax Law itself (Decreto-Ley 25, Article 8(d)–(e)) defines a resident as someone who actually lives in the country and is not a mere transient, adds that a foreigner whose stay is limited by immigration law is not resident unless other facts show an intention to stay longer, and says a foreigner whose stay has extended far enough becomes resident in fact. The tax year is the calendar year (Article 27). A tourist stay is up to 90 days, extendable (Ley de Migración y Extranjería, Article 20), so a long tourist stay can cross the three-month line. Because the system is territorial, residency mainly decides which rates apply to Honduran income: residents use the progressive scale, while non-residents pay flat rates on gross Honduran-source income (Article 5).

Top income tax rate

Tegucigalpa (Distrito Central): 25% national income tax on taxable income above L809,660.75 a year in 2026 (Acuerdo SAR-01-2026, Ley del Impuesto sobre la Renta, Article 22(b)), plus the municipal personal tax (impuesto personal or vecinal) of L5.25 per thousand, or 0.525%, on annual income above L150,000 (Ley de Municipalidades, Article 77). Municipalities cannot change that tax (Article 74), so the top rate is the same across the country. Dividends and capital gains are taxed separately at 10%.