Property Taxes & Closing Costs in Roatán: What Retirees Actually Pay

01The headline number

Budget for 6% of the purchase price for closing costs in Roatán, which generally include property transfer taxes, notary and registration fees, legal fees, and optional title insurance. For example, on a US$600,000 villa, estimated closing costs would range from US$30,000 to US$36,000.

While closing costs vary across international real estate markets, Roatán remains competitive with many Caribbean and European destinations. Beyond the initial purchase, the island's relatively low annual property taxes and potentially affordable ongoing ownership expenses can make it an attractive option for retirees, vacation homeowners, and investors compared with higher-cost markets in Florida, Arizona, and coastal Europe.

02Closing costs, line by line

Closing costs in Roatán include several expenses associated with the legal transfer and registration of a property. Attorney fees for due diligence, preparation of the title deed, cadastral follow-up, and registration are calculated at 3% of the purchase price. Additional charges include a municipal cadastral certificate at 1% of the purchase price, plus a US$60 inspection fee, and a property transfer tax of 1.5% of the purchase price.

Buyers should also budget for property registry fees, notarial paper, stamps, copies, and other administrative expenses, as well as obtaining a personal RTN (Honduran tax identification number). When purchasing through a Honduran corporation, additional costs apply for company formation and obtaining the corporation's RTN. Miscellaneous expenses may also arise depending on the transaction.

These expenses should be reviewed with the closing attorney, as the final amount will depend on the property's purchase price and the requirements of the transaction.

03Annual property tax

Roatán's municipal property tax (Impuesto sobre Bienes Inmuebles) is assessed on the registered cadastral value, not the market price, at a rate measured in fractions of a percent. In practice, luxury villas pay a few hundred to low thousands of dollars per year.

Payment is due annually to the Municipality of Roatán, with a discount for early payment.

04Ongoing costs to model

Beyond tax, retirees budget for HOA or resort dues, homeowner insurance including named-storm coverage, utilities (electricity is the largest line item on the island), and property management if the home is rented while you travel.

05Selling later: capital gains

When you eventually sell, Honduras applies a capital-gains tax on the profit of 4% in the Bay Islands and is withheld at closing. The legal advisor ensures that all property improvements have been registered with the Honduran Institute of Property to reduce capital gains.