Does Honduras tax foreign income?

Not taxed. In one line: ~5% on income in the zone · 0% on foreign income.

Can I run an online business from Honduras?

Effective tax about 2.5% with the cheapest legal set-up, which costs about USD 1,300 a year: Próspera: ~1% of revenue or 10% of profit-based options; legal status disputed.

What is the catch in Honduras?

High legal risk: treat as a bet.

Moving to Honduras: tax, residence and real costs (2026)

Honduras: ~5% on income in the zone · 0% on foreign income. The cheapest route to residence is próspera e-residency / physical residency (USD 1.3k a year): about USD 1,300 in fees doing it yourself, with no investment, in about 1 months. Living costs about USD 910 a month for one person in Tegucigalpa, USD 620 in La Ceiba, and around USD 590 on a bare-minimum budget.

Key facts

Tax in one line	~5% on income in the zone · 0% on foreign income
Foreign income	not taxed
Gains · dividends	0 on foreign · 0
Wealth · inheritance tax	none · none
Cheapest residence	Próspera e-residency / physical residency (USD 1.3k a year)
Money needed	About USD 1,300 in fees doing it yourself, with no investment
Time	about 1 months
Doable yourself?	Yes, with a checklist
Days you must spend there	-
Citizenship	-
Online business	2.5% effective, about USD 1,300 a year to run: Próspera: ~1% of revenue or 10% of profit-based options; legal status disputed
Living (one person a month)	Tegucigalpa ~USD 910; bare minimum ~USD 590; family of four ~USD 2,050
Good for	biotech under chosen regulation
Common set-up	zone company

Pros and cons

Pros	Cons
Experimental low-tax zone with its own rules Medical and biotech trials allowed under chosen regulation	Honduras's Supreme Court ruled ZEDEs unconstitutional (2024); an arbitration claim is pending Legal future uncertain

Questions

How much does residence in Honduras cost?: Próspera e-residency / physical residency (USD 1.3k a year): about USD 1,300 in fees doing it yourself, with no investment, about 1 months.
Does Honduras tax foreign income?: Not taxed. In one line: ~5% on income in the zone · 0% on foreign income.
What does it cost to live in Honduras?: Living costs about USD 910 a month for one person in Tegucigalpa, USD 620 in La Ceiba, and around USD 590 on a bare-minimum budget (based on livingcost.org, 2026).
Can I run an online business from Honduras?: Effective tax about 2.5% with the cheapest legal set-up, which costs about USD 1,300 a year: Próspera: ~1% of revenue or 10% of profit-based options; legal status disputed.
What is the catch in Honduras?: High legal risk: treat as a bet.

Compare

Paraguay: 0% on foreign income · 10% on local income · 8% on local dividends
Uruguay: 0% on foreign dividends and interest for 11 years (tax holiday) · up to 36% on local work income
Panama: 0% on foreign income · up to 25% on Panamanian income · 10% on local dividends
Belize: 0% on foreign income · up to 25% on local income
Costa Rica: 0% on foreign income · up to 25% on local income · 15% on local dividends
El Salvador: 0% on foreign income · up to 30% on local income

Compare all 53 places with your own income and budget →

Sources

https://www.prospera.co
Living costs: based on livingcost.org (livingcost.org, June 2026), rounded