Coastal, Border and Island Ownership Limit (the key rule)
RestrictiveHonduras restricts direct foreign ownership within a 40 km belt along national borders and along the Caribbean and Pacific coastlines, and across all islands, keys and reefs, which includes Roatan, Utila and Guanaja.
- Under Article 107 of the Constitution and Decree 90-90, a foreigner may directly own urban property in these restricted zones only for residential or tourism use, capped at roughly 3,000 square metres and limited to one property per person. Larger holdings inside an officially designated tourism zone are possible through a Honduran-owned company or specific tourism-development approval, which is the structure most larger Bay Islands and resort projects rely on. Verify the exact zone status and any tourism-development designation for each parcel before committing; this rule, not tax, is the single most important factor in an island purchase.



