Where is Roatan?
- Roatan Island is approximately 35 miles long and about 3 miles wide at the widest point. It is located in the Caribbean just about 30 miles to the east of the Honduran border in the Caribbean. There are two smaller islands near Roatan called Utila and Guanaja that are of similar beauty.
Can I own real estate in Roatan if I am not a native to Honduras?
- Yes, you can own property in Roatan even if you are not a Honduran national. You can purchase up to ¾ acre in your individual name. If you want to own larger tracts of land, then you have to simply purchase a Honduran Corporation to hold your real estate.
What does a Honduran Corporation cost and how long does it take to get?
- A Honduran Corporation will cost approximately $1,300 USD. A corporation is prepared by a local attorney and is typically returned with an RTN (revenue tax number) and the original corporate documents within approximately 45 days. Documents are sent to Tegucigalpa for final approval of the RTN before being returned to the requesting attorney.
How do I know I am buying land with a good title?
- The process for purchasing land in Honduras is very similar to those processes in the US. A title search is completed and a legal opinion is rendered as to the status of the title. Because of the legalities and formalities of land ownership, it is strongly suggested that a real estate professional and an attorney review the documents before any purchase is made. Property cannot be conveyed if the land does not have a clear title. Be sure to have a professional check your purchases before signing a contract for purchase.
Is there title insurance available?
- Yes, you can get title insurance and other insurance to cover your property for damages. You can obtain title insurance through First American Title or Stewart Title if you are interested in obtaining title insurance for your purchase. As far as other insurance, there are several very good insurance agents on the island that would be happy to assist with your insurance needs.
Can I buy real estate with my IRA?
- Yes, you can purchase real estate with an IRA. There are some extra steps and conditions that must be followed to ensure you are protected. Contact your accountant to discuss the potential for purchasing foreign land through your IRA.
What about schooling for my school-age children?
- There are both public and private schools in Roatan. There are also individuals that have smaller groups of children that are home schooled.
Are there medical facilities in Roatan?
- There are a couple of places for medical treatment on the island. If there is a serious medical need, there are very good hospitals in La Ceiba and in San Pedro Sula. One of the major hospital groups in Honduras is currently looking to build an emergency hospital facility in Roatan. They are in the beginning phases of negotiations for construction of a new major hospital facility to serve the emergent care needs for the residents and visitors of Roatan. In the interim, there are times when a life flight service will carry passengers from Honduras to either Houston or Miami should the patient request that type of service.
Can I work in Honduras?
- Yes, you can work in Honduras if you have the proper documents with approval to work.
Is it difficult to travel to Roatan?
- No, there are several direct flights to Roatan. You can take a flight from Houston, Miami, Atlanta, Newark and now from Milan and Canada. Check with your local travel agent for further details.
Buying Real Estate Section:
What do the different types of title really mean?
- There are several titles that are issued here in Honduras. A private document is typically an unregistered deed that the owner holds. An unregistered document does not necessarily signify that the title is not legitimate; however, you should ask your real estate professional and/or attorney to assist you with the verification of the ownership on a property that only has private documents. There is another document called a Domino Pleno. That is the first title that is taken out as a public document to prove and register ownership. A Domino Pleno can have the same validity as an Escritura Publica. Again, be sure to have someone perform an adequate search to verify ownership and rights of the property. An Escritura Publica is a publicly registered document that ensues a recorded Domino Pleno title in the line of conveyances. A Titilo Superior is a document that succeeds the Escritura Publica. It has been registered and acknowledged by the Supreme Court of Honduras. A Titilo Superior can imply title disputes yielding a higher ruling or it can simply be that owners are stating the validity of their title through the high courts. Any one of these titles is not better than the other; however, it is important to ask your real estate professional or an attorney about the history of the title before giving anyone money.
What about ownership or a transfer of ownership in a recorded document?
- Some documents have a representative listed in the document. That does not negate any other legal ownership of the land by other owners. All owners must agree to sign off on the title of any deed before the deed can be transferred to new owners.
Is access an issue of concern?
- Access is not typically a concern, but is certainly a question that should be asked prior to signing an offer. Your real estate professional should be able to discuss any potential concerns for access and remedy those issues when discussing the offer process.
Is financing available?
- Yes! We have our first mortgage company on the island! Great news for those that are looking for assistance or just want leverage instead of paying cash! Go to Bay Island Mortgage for more information. There are also instances where some sellers will offer owner financing. Be sure to ask your real estate professional about any deals that they are aware of that can offer you owner financing.
What is the cost of construction?
- Construction varies here in Roatan. You can find some builders that will build wood construction for approximately $85 per square foot. If you want a home of concrete construction, the price goes higher. The prices range for construction from $85 per square foot to $150 per square foot. You can certainly ask around for reputable builders and visit some of their finished products before deciding which construction professional to retain.
Are their restrictions on construction?
- Typically there are permits that will be required no matter what type of construction you are doing. Basically the permits are a means for collection of revenues to operate the municipality. If you are building a home on a lot, there is minimal paperwork and permits that are required. If you are building something with more infrastructure, (more along the lines of a development) you will be required to have an environmental impact study submitted to the municipality for review before permits will be issued for the project. Builders are familiar with the requirements for construction and can assist you with your questions regarding construction and development.
Moving to Roatan:
What are taxes like in Roatan? Are they very expensive?
- Property taxes are very affordable. Depending on the type of property you own (residential or commercial), you are taxed on an assessed value. We had a client that was delinquent on his residential taxes for 5 years. His bill was calculated at $156.00 for those years, including penalties and interest for non-payment of his property.
Is there a Mayor of Roatan?
- There are two Mayors of Roatan. One Mayor resides over the west end communities of the island and the other resides over the east end of the island. The marker that delineates the separation of east from west for the municipalities is the area called the “Monument” just before Politilly Bight on the south side of the island. Tax documents for the east end are registered in Oak Ridge (including documents for Barbaret, Morat and St. Helene). However, registered deeds and Escrituras are filed in Coxen Hole with the Municipality for the west end of the island. There is one appointed Governor who presides over the Bay as a whole. The Mayors of the island are voted into office but the Governor is appointed.
Is crime a problem on the island?
- Most of the crimes that happen on the island are petty crimes such as theft of cell phones and videos. There is some crime on the island; where there are people, there is crime. We attribute the relatively low instances of crime to the fact that Roatan is an island and there are not many places to hide.
How is Roatan Governed?
- Roatan operates on a Democracy and is governed by British Rule.
Infrastructure in the Bay Islands:
How is the infrastructure in Roatan?
- Roatan is a relatively developed island. There are some more remote areas that are not as developed as others, but the basic infrastructure is available just about anywhere on the island. Power is very accessible and is not difficult to obtain in most areas. There may be a few areas that are more expensive to bring power to than others, but for the most part, power is not a concern. Roads are continuously being upgraded and improved. There is an initiative now for the road to the east end of the island to be paved. The main road of Roatan is paved from the west end of the island to approximately Oak Ridge. The new initiative is for the paved road to continue to Camp Bay from Oak Ridge. New roads are being cut regularly in Roatan. With the rapid growth and the tourism traffic to the island, it is our opinion that infrastructure will continue to improve. Water is not a problem on the island at this time. Many people have their own wells to supply water to their homes. There are some areas of the island that do have city water supplies for local housing. There is a water project going on in Sandy Bay now that will provide water to the community 24 hours per day, 7 days per week! We look forward to all of the improvements that are in process now or that are coming soon.
How is the infrastructure in St. Helene?
- St. Helene is a small island just off of Roatan. It is separated from Roatan through some mangrove swamp to the eastern side of Port Royal. St. Helene is not a heavily populated area and is inhabited by English speaking locals. The power source in St. Helene is typically generated by solar power or a diesel generator. However, with the changes in our local power company, there is a projection to bring power from the main island of Roatan to St. Helene, Morat and Barbaret. The communities of the island do work together to supply water to the homes in the area. There are no cars on St. Helene at this time, so there are no real roads for vehicle traffic. People travel mostly on foot or by boat when they need to get from one destination to another. Morat and Barbaret are two other islands to the east of St. Helene. Morat does not have much development at all but Barbaret is developing rapidly as there is an owner making improvements there.
How is the infrastructure on Guanaja?
- Guanaja is a very beautiful island in the Bay. It is situated just east of Roatan and has the highest mountains of Roatan, Guanaja, and Utila. Guanaja is relatively undeveloped at this time; though, it is not difficult to see that changes are coming. Recently, the government has mandated the construction of roads that currently run from Savannah Bight to Mangrove Bight. There are some extensions that are moving outward from those locations. It is exciting to see the changes happening in Guanaja right now! There is a lack of power that is readily available throughout Guanaja. There are some developed areas of the island that have power; but, for the most part, much of the island has power that is generated either through solar power or by a diesel generator. Because of the development of new roads, it is reasonable to expect that power will also come in the future to those areas that have road access. There is abundant water on Guanaja from natural springs and waterfalls. There are not many people currently residing on the island, which leaves the water resources plentiful for development. Guanaja has been described by many as nature’s abundance. It is truly a beautiful island and will develop with the current changes in infrastructure.
How is the infrastructure in Utila?
- Utila is relatively flat in comparison to Guanaja and Roatan. The infrastructure of Utila is similar to that of Guanaja. The power is currently generated by a company from the US. The roads are developing as Utila is a noted dive destination and is a major attraction for people looking for an inexpensive option for travel. There are some higher end areas in Utila as well.
What if I still have questions?
- Call or email our office today!
