Selling a property in Honduras can be an exciting process, but it also comes with certain legal and tax obligations. If you're planning to sell your house, land, or commercial property, it’s important to understand the costs and taxes you must cover to complete the transaction properly.

1. Income Tax (ISR) on Capital Gains

One of the main payments when selling property is the Income Tax (ISR), specifically on capital gains.

• What is capital gain?
  It’s the difference between the price you originally paid for the property and the amount you are selling it for.

• How much do you pay?
  The capital gains tax is 10% of the net profit.

  Example: If you bought a lot for L.500,000 and sell it for L.700,000, your profit is L.200,000. You must pay 10% of that gain, which is L.20,000, as ISR.

• How is it calculated?
  The profit is calculated by subtracting the original purchase price, verified improvement costs, and legal/documentation fees from the selling price.

2. Municipal Fees

Some local governments charge a municipal transfer fee when a property changes ownership. This varies by municipality and is usually a small percentage of the sale price.

Tip: Check with the local city hall where the property is located to see if such a fee applies.

3. Notary and Registry Fees

While these costs are usually paid by the buyer, it’s common for both parties to agree on splitting some of them, such as:

• Deed of sale drafting

• Registration fees at the Property Institute (Instituto de la Propiedad - IP)

• Legal certificates or municipal clearances

4. Required Clearances

Before selling, you must ensure the following are up to date:

• Property tax payments (IBI), also known as Real Estate Tax

• Municipal clearance, proving you have no pending debts with the local municipality

Final Recommendations

• Consult with a real estate attorney or notary to ensure the process is legal and smooth.

• Keep all receipts and documentation related to your original purchase, property improvements, and tax payments.

• If the property is inherited, additional procedures may be required—such as a declaration of heirs—before you can sell legally.

In Summary, When Selling a Property in Honduras, You Should Account For:

? 10% capital gains tax (ISR)
? Possible municipal transfer fees
? Property taxes and municipal clearance
? Legal and notarial fees