Buying Land in Roatán or Guanaja: What Foreigners Need to Know Before Going Big
Whether you’re looking at Roatán or the more secluded and serene Guanaja, buying land in the Bay Islands is one of the most attractive Caribbean real estate opportunities in Central America. But if you’re a non-Honduran citizen and plan to purchase more than 3,000 square meters (about 0.74 acres), there’s one crucial step you can’t skip.
Let’s break down exactly how it works, why it matters, and how to go through the process with confidence:
Why the 3,000 m² (0.74 Acres) Limit Exists
Since 1991, non-Honduran citizens have been allowed to purchase property in Honduras. But there’s a limit on the amount of land that can be owned in an individual’s name:
Foreigners are limited to 3,000 m² (0.74 acres) when purchasing coastal or island land.
This law exists to protect national land resources, especially along Honduras’ valuable coastline and islands. However, that doesn’t mean foreigners are locked out from buying larger parcels.
The Solution: Form a Honduran Corporation
To legally purchase land over 3,000 m² (0.74 acres), the solution is straightforward:
Form a Honduran corporation. This is a common, fully legal method used by foreign investors, retirees, and second-home buyers across Honduras.
A Sociedad Anónima (S.A.) or Honduran stock company allows you to:
- Own land of any size legally
- Operate rentals or tourism businesses
- Hold assets for future resale, development, or inheritance planning
- Enter into contracts as a legal Honduran entity
And yes, as a foreigner, you can own 100% of this corporation.
Setting Up a Honduran Corporation: Step by Step
Here’s what’s involved in forming your company:
1. Two Shareholders Required
At least two individuals or legal entities must be listed as shareholders (each with at least one share).
2. Minimum Share Capital
The minimum is 25,000 Lempiras (around $1,000 USD). You’ll need to deposit at least 25% of this amount into a Honduran bank account.
3. Asset Contributions
If you’re using land or other property as capital, its full value must be documented and legally declared.
4. Formation Method
Most corporations are created through simultaneous foundation with a local notary, which is the most efficient and reliable route.
Corporate Structure Overview
Your company will include:
- General Assembly – The main decision-making group
- Administrator or Board of Directors – Oversees daily management
- Auditor(s) – Ensures legal compliance and transparency
This structure ensures your corporation operates efficiently and legally.
What You’ll Need to Get Started
To form your corporation, you’ll need to provide:
- Copy of your passport (photo page + adjacent page)
- Your profession
- Current city and state of residence
- Marital status
- A proposed company name (must not include your first or last name)
If you’re setting it up with a partner:
- Decide on ownership percentages (e.g., 50/50)
Define whether both will act as administrators (jointly or separately)
After Formation: Registration & Tax ID
Once formed, your corporation will need to be registered with:
- Registro Mercantil (Commercial Registry)
- Dirección General de Tributación (Tax Authority) to obtain an RTN (Tax Number)
- Chamber of Commerce in your jurisdiction
Once these steps are completed, your corporation is fully legal and ready to own, hold, and manage land.
Why It Matters in Roatán and Guanaja
Buying more than 3,000 m² opens the door to a wide range of opportunities:
- Eco-lodges or boutique hotels
- Off-grid lifestyle retreats
- Rental compounds or gated communities
- Agricultural or conservation-focused investments
On Roatán, where tourism and development are thriving, and in Guanaja, where tranquility and raw nature reign, owning more land can mean more freedom and more potential.
Work With the Right Notary & Attorney
One of the most important and often overlooked steps in this process is choosing the right legal team. Your notary and attorney are essential to forming your corporation, registering it.
At Roatan Sotheby’s International Realty, we’ve built long-term relationships with trusted legal professionals in the Bay Islands.
We’ll refer you to notaries and attorneys and guide you through every step ensuring everything is done properly, legally, and with full peace of mind. Choosing the right notary is the first and one of the most important decisions in your land purchase process.
Why Local Guidance Matters
With over 15 years of experience assisting buyers and sellers in the Bay Islands, I’ve guided hundreds of clients confidently and legally through this exact process.
I know how things work here from negotiating a fair deal, to working with top attorneys and notaries, to ensuring your title is issued and registered correctly.
That means your transaction is smooth, informed, and stress-free.
Ready to Take the Next Step?
Whether you’re planning your first land purchase in Roatán or exploring something more off-grid in Guanaja, forming a Honduran corporation is the key to owning larger properties legally and safely.
I’ll help you find the right property Refer you to a trusted attorney and notary. Walk with you from start to finish no surprises, no confusion
Let’s make your investment in the Bay Islands a smooth and successful one.
Contact me today to start the conversation. I’m here to answer your questions, explore your goals, and guide you confidently through the process.
