Residency is over rated for most!
Do you need to be a Honduras resident? Assuming you have fallen in love with life in Honduras – the beautiful and diverse land, the cocktails on the beach, the very low cost of living, spending hours and hours working with government officials, the entertainment, and above all, the fun people who live here – there are some things to consider when you spend a lot of time here.
This is a general guide made from many years of experience. However, I cannot emphasize enough that it is necessary to engage a lawyer, recommended by prior clients, well before you intend to start the process. I am not responsible for people who believe the information they read on the internet!
General entry to Honduras
Honduras immigration, at least on Roatan, has been pushing for residency in the last few years. If you have a lot of stamps entering and leaving Honduras, immigration officers may sometimes give you a hard time and tell you to get residency, although they will still let you through. If you land in San Pedro, they don’t seem to care at all and will normally give you your 90 days and just whisk you on your way.
The standard practice is to grant everyone 90 days, and then you can extend it for a further 30 days by visiting the immigration office in Coxen Hole, which is one of the more efficient offices of Honduran governance. However, now and then, there is someone at the airport with a power complex who will give you a hard time and only stamp you for 30 days. It’s rare, but it does happen. Don’t worry; you can still stay the full 120 days, but it just means multiple visits to immigration. Make sure you go to immigration in Coxen Hole in the Plaza del Mar building before your visa runs out, but only just before, otherwise, your fines will start accruing.
If you don’t have a return ticket on entry, something that never used to be allowed, be very, very careful. Check with the airlines, etc. The airlines have the right to stop you from boarding, and Honduran immigration has the right to deny you entry. So some airlines won’t let you go without a return ticket. Two ways around this I have used are to buy a separate fully refundable return ticket or buy a bus ticket online from Ceiba to Guatemala City and tell them I am backpacking. The second one can be a little more difficult if you get an obnoxious ticket agent or immigration officer, but I have used it. All this is very rare, but it is good to be aware of these possibilities.
On arrival in Roatan (this is not necessary for San Pedro Sula), I ask them very politely for 90 days and tell them I must return home in 70 days for a (insert important thing here) and know the date if you are going to fabricate something. They give it out in monthly multiples, so normally 90 days is an easy calculation. As I said, normally the immigration officers are helpful and efficient, but being upbeat, sweet, and extremely respectful always helps. I cannot emphasize that last word enough. Be respectful in Honduras. The surest way to get nothing done or worse is to be disrespectful to the official you are dealing with. I don’t care if they ask you to stand on one leg while taking your fingerprints. Do it with a smile and a nod of thanks.
“But I want to stay a full year,” you say and you are not a resident. Well, it is not that hard to do anyway. Either you leave twice at the end of your visa and take a four-day vacation somewhere outside the CA-4. The CA-4 group is made up of Honduras, Guatemala, Nicaragua, and El Salvador, and they permit visa-free travel between them all. This means they spread your 90 days between these four countries. You cannot renew your tourist status in Honduras by visiting another CA-4 country. Fly free, go on vacation somewhere else, and visit family and friends. Then when you return, your next visa starts again.
The second way seems weird to us from first-world countries. Just stay a year and don’t leave. Most countries in the world take great exception to your staying a minute past your visa deadline, and some will even ban you from returning for years for an honest mistake. Honduras is not one of those countries. They have a set monetary fine structure and seem quite happy to just collect the fine and then let you return a short time later. I have known people to overstay for many years, pay the fine, and then return 2 weeks later. Maybe they see it as a source of revenue.
The fine is set based on the standard working wage in Honduras and is about 6,000 Lempira (250 USD) for the first 6 months. One day after the 6 months, you pay the next 6 months, and then it goes up another 6,000 for every 6 months after that. Figures are estimates and are based on information available in March 2023. It is a reasonably easy process. If you have overstayed, you must go to immigration days before you fly out to get the fine paid. Once they have decided how much you owe, they give you a form to take to a bank to pay it, and when you return with the receipt, your passport will be stamped.
| Date | Fine Range | Amount |
|---|---|---|
| March 24, 2023 | 1 day to 6 months | 6,357.16 |
| March 24, 2023 | 6 months and 1 day to 2 years (one salary) | 12,714.32 |
| March 24, 2023 | 2 years and 1 day to 3 years (one salary and a half) | 19,071.48 |
| March 24, 2023 | 3 years and 1 day to 4 years (two salaries) | 25,428.64 |
| March 24, 2023 | 4 years and 1 day to 5 years (two salaries and a half) | 31,785.80 |
| March 24, 2023 | 5 years and up (three salaries) | 38,142.96 |
Since this process is so simple and at the moment without any impediment to your further travels back to Honduras, it is a worthwhile question to ask yourself: do you need residency? There are some advantages to receiving it, but there are also some costs and restrictions.
If your intent is, for instance, just to spend half the year here to avoid the winter cold of far-flung countries, then paying a $250 fine for a few extra months may not matter to you. If you intend to travel from Honduras frequently (inside the 120 days), then there is no need for it either.
Why not just get residency anyway? Well, you do not need to be a resident to buy property here. Residency costs approximately as much as $3,000 per person to apply. There is some variation in that depending on the kind of application, family members, etc., and a business application will cost more because of the necessity of forming a Honduran company. It also requires you to hunt down some documents which can be a pain to acquire depending on where you live. So think it through and, of course, consult a lawyer. The laws, costs, and requirements change often, especially in Honduras.
The Benefits of residency
Honduras does not charge taxes on money earned outside of Honduras. Therefore, if you have investments in other countries or are employed by a company elsewhere, you will not be taxed on that income. Yay for Honduras, as this makes it a wonderful country for digital nomads and retirees alike. When you obtain your residency, if you apply correctly (with the help of a lawyer!), you can enjoy substantial tax benefits when bringing goods into the country.
Honduras imposes high taxes, as high as 75%, on many items like cars and household appliances. However, you can receive a one-time exemption for moving your household goods here and also bring a vehicle without paying import duties every few years. As a resident, you won’t have any concerns about entering the country, and residents and nationals enjoy faster immigration processing.
It’s easy to open a bank account, but most banks won’t allow it without residency. You can also apply for a driver’s license (see also disadvantages!). If you are already receiving SSA benefit payments, there will be no change in the method of distribution of those payments.
Disadvantages
It is costly, at about $3,000 or more, for a first-time business application. However, my lawyer charges much less. Initially, the residency lasts only one year for the first 5 years. You need to renew it annually before the expiry date; otherwise, you will receive a fine, just like any other person who overstays. Renewals are affordable, approximately $100. After five years, you have to apply again, but this puts you in “Inmigrado” status, and now you only have to renew every 5 years. Delightful.
Acquiring all the necessary documents can be a hassle, especially obtaining foreign police reports. Each country has different procedures for obtaining these reports, and if you move around frequently, they can be challenging to obtain. Additionally, all foreign documents must be apostilled and, if necessary, translated. Apostilling is part of the international “notary” system. In the USA, you will need to take any documents to your state capital and/or send them to the Honduran embassy. In Canada, they have to go through the embassy. The application must be completed within 6 months, as documents are considered invalid after that and will need to be resubmitted. It’s advisable to hire a good lawyer for assistance.
Once you become a resident, you are expected to get a Honduran driver’s license. This can be challenging, especially during the first 5 years when you have to endure a several-day process annually. You also need to be proficient in speaking/reading Spanish to ensure you pass. While there have been English tests by treaty, I seem to miss hearing about them. Obtaining a Honduran police report can also take days. Lastly, you may have to take both a written and a practical driving test. I use the word “may” frequently in my guides because so much depends on the day, the official you are dealing with, the political party in the government, and which way the wind is blowing. In my opinion, all this effort may not be worth it, as you will only get a license valid until your residency expires. This is why most residents still use their foreign driver’s licenses and pretend to be tourists at checkpoints. At least once you become an “Inmigrado,” this changes.
As a resident, you are required to live in the country for the majority of the year. If you spend less than 6 months a year, maybe more, outside of Honduras, you can lose your resident status.
Hondurans and residents are entitled to discounts when they reach the age of 60, which I am told is the new 30s! It certainly doesn’t feel like it. “Tercera edad,” or for those who may not be fluent in Spanish, the “third age,” grants you some benefits. The life expectancy of Hondurans averages 75 years, while in the USA, it’s only 78, and most of Europe is over 80. So, you have 15 years of amazing discounts to look forward to while in Honduras. Well, that’s if businesses comply with the law. The following information is compiled from various websites and should only be seen as a guide. If someone can point me to the official government list, I would be most grateful.
Recreation and entertainment activities: 50% discount
Consultations with specialist doctors: 30% discount
Restaurant food: 20% discount
Services like cable television: Discounted
Accommodation (hotels, etc.) from Monday to Friday: 30% discount; Saturday and Sundays: 20% discount
25% discount for consultations with a general practitioner, purchase of medicines, surgical materials, funeral homes, coffins, and burial plots
25% discount on transportation, restaurant consumption, and cafeterias
Public services: 25% discount for invoices up to 1,000 lempiras as a limit
Hospitals and private clinics offer a 20% discount
Departures from airports and most forms of travel offer discounts
Mortgage loans get a 2% discount
Lastly, you get to go to the front of the lines in banks and many other places. An absolutely wonderful way to annoy other people.
Note, though, that these discounts are more respected on the mainland than on Roatan. While they may be law, when you are in a restaurant arguing over the bill, it is not a pleasant experience. Many businesses are owned by expats and are often unfamiliar with the law or choose to ignore it. Airbnb’s often operate outside the Honduran economy and completely disregard these discounts. However, as the discounts can be substantial, especially for hotel bills, it can be worth standing up for your rights. If a business refuses to provide the discount, you can go through the process of filing a police report, known as a “Denuncia,” and they will be fined. Fines start at around 3,000 Lps, but repeat offenders risk losing their business license. People can file their complaints through the free telephone line 115, by sending an email to denunciasdeconsumidores@gmail.com, or by presenting their invoices to the office of the Directorate of Consumer Protection, located in the Government Civic Center on the mainland Parents beware!
You are now required to obey all Honduran laws. This may seem obvious, but it can raise some real issues. For instance, if you are a parent, a child is still considered a minor here until they reach the age of 21. So, technically, even your fully evolved and independent 18-year-old adult child, who may enter Honduras on a foreign passport, cannot leave the country on their own without a notarized letter provided by a lawyer. They must have their parent’s permission to travel. In reality, this doesn’t happen often, mainly because they don’t enforce these laws very effectively, but it is a possibility.
he basic methods of applying for residency are as follows:
There are five main ways for the average individual to acquire residency.
Purchasing property alone does not grant you residency, but it may assist in your residency application.
“Pensionado”
Typically, this option is for retirees with a monthly pension of at least $1,500. Once you’ve demonstrated this income in your application, you will need to consistently show a monthly deposit into a Honduran bank to maintain your residency. It’s important to note that you are not permitted to work under this type of residency.
“Rentista”
This option is available for individuals who can provide evidence of a regular guaranteed income exceeding $2,500 per month. Unlike “Pensionados,” “Rentistas” have higher income requirements due to their potentially greater spending capacity. The income can originate from sources other than employment, such as stocks, pensions, trust funds, properties, interest, and more. To maintain your residency, you must continue making deposits into a Honduran bank account. Please note that working is not permitted under this type of residency.
“Famila”
If you have a direct relationship with a Honduran citizen, you can apply for residency through this method, which is both the cheapest and easiest to obtain. Such a relationship can be established through marriage, your parents, or your children.
“Inversionista”
If you invest $50,000 USD into a business in Honduras, you qualify for residency. Your home can also be considered as your business if you rent it out some of the time.
“Permiso de Permanencia de País como de Empresario de Extranjero”
This option allows you to establish a new business and then become a resident by being the owner of that business. As with all of these residency options, it’s advisable to use a lawyer. You don’t need to apply for residency from outside of Honduras, but it’s crucial to consult with a lawyer BEFORE leaving your country because there may be specific documents you need from your home country that require in-person acquisition. So, ensure you handle all the necessary paperwork correctly from the start to avoid wasting time and money on returning home for missing documents.
Documents
The documents you will need depend on the specific residency application you are pursuing. However, here is a list of some of the documents that you may require. Please note that you can find comprehensive information on the government website government website. (sarcasm ) Most documents will need to be apostilled and potentially translated, as your lawyer will explain to you. Apostilles authenticate the seals and signatures of officials on public documents, such as birth certificates, court orders, or any other document issued by a federal agency or certified by an American or foreign counsel.
How do I get a document apostilled in Canada?
The ability to obtain an apostille depends on your location and the specific document you need apostilled. If you reside in Canada, there’s some bad news – Canada is not a signatory to the Hague Apostille Convention, and thus, it does not issue apostilles. However, you can obtain them through the Honduras Embassy in Canada. Alternatively, certain private companies may be able to assist you with this process for a fee.
(Hashtags: #legal #residency #lifeonroatan)
How do I get a document apostilled in USA?
For apostilling federal documents, it’s important to note that they should be apostilled in Washington, D.C. Otherwise, apostilles should be obtained in the state where the certificate was issued. You cannot get a notarized document in one state and have it apostilled in another. Therefore, for documents like background checks from specific counties, they must be apostilled in the state where that county is located. Some states allow you to complete this process in their state buildings, while others may require you to send them via mail. The requirements and fees may vary by state, so it’s essential to check the specific requirements of each state to allow for the necessary processing time.
Example links for more information:
Federal Apostille Information
California Apostille Information
Georgia Apostille Information
To maintain your residency, your visa should be in good standing, not past the expiration date, and your passport should not be close to expiring. Additionally:
You need to provide proof of a clean criminal record, usually through a police or federal report from your last place of residence. This can be challenging depending on your previous locations.
If family members are included in the application, you will need to provide proof of their status (birth certificates, marriage certificates, etc.).
Medical reports to confirm good health can typically be obtained locally or abroad.
“Pensionado” and “Rentistas” applicants will need to provide proof of income.
Investment or business applicants may need to submit a business plan and proof of funds.
If you intend to bring in tax-free goods, ensure your lawyer is aware of this before filing the application.
You will need standard application materials, including photos, application forms, and the necessary fees.
Above all, the most crucial advice is to secure a good lawyer. Finding the right one can save you time and money. It’s advisable to ask for recommendations and ensure the lawyer has a track record of successful and timely residency applications. Under normal circumstances, the residency process should take no longer than 3 to 6 months, except during COVID-19 when delays did occur. The process can typically be completed in three months and should be finalized within six months.
Where is the immigration office in Roatan?
The immigration office is situated on the 3rd floor (depending on whether you are from the USA or the UK) of Plaza Mar. Plaza Mar is located off the main road behind the Petro Sun and Eldon’s in Coxen Hole. This is the place where you will need to visit for various immigration-related tasks such as paying your overstay fines, extending your visa, and renewing your residency cards. You can make payments for fines or fees at the bank below or at most other banks in the vicinity. (Coordinates: 16.32255, -86.53693)
hide
The latest on overstaying your visa is posted here