Living in Honduras: resident if living in the country, 2026 tax brackets from 15 to 25 % starting at 228,324.33 lempiras, dividends at 10 %

This page reports on information published by the Honduran Tax Administration (SAR), the Superior Court of Accounts, and the BOFiP (Official Bulletin of Public Finances). The law defines a resident as someone who currently lives in the country and is not simply a visitor, without specifying a minimum number of days. For 2026, the income tax brackets for individuals are exempt up to 228,324.32 lempiras (L), then taxed at 15, 20, and 25 %. Dividends paid to a resident are subject to a 10 % withholding tax by the company, and capital gains are subject to a single tax of 10 %.

The BOFiP list of tax treaties in force on January 1, 2026 does not mention any treaty between France and Honduras.

Resident or non-resident: what the law says

The consolidated text of the Income Tax Law (Decree-Law No. 25), published by the SAR on February 2, 2026 and updated until the SAR-07-2025 agreement, sets out the principle in Article 2. Every person domiciled or resident in Honduras, whether natural or legal, Honduran or foreign, pays income tax on income received, whether the source of income is located inside the country or outside of it.

Article 8 defines the two statuses:

• Resident A transient is a person who currently lives in the country and is not simply a transient or traveler. A vague and undefined intention to leave for another country is not sufficient to qualify them as a transient. A foreigner whose stay is limited by immigration law is not a resident unless other, more specific circumstances indicate an intention to stay longer than the originally requested period.
• Non-resident : a person whose residence is not in the national territory and who is not Honduran. The exception applies to a foreigner who demonstrates, through actions or declarations, a clear intention to acquire residence in Honduras, or whose presence has been prolonged to the point that they become a de facto resident.

The text read does not specify a number of days of presence and does not define domicile separately from the resident. The text thus relies on factual criteria: actual living in the country and the intention to remain there.

2026 Personal Income Tax Scale

Agreement SAR-01-2026, published in La Gaceta No. 37 051 on January 23, 2026, adjusts the progressive scale for fiscal year 2026. The adjustment is 4.98 %, based on the change in the consumer price index published by the Central Bank of Honduras on January 2, 2026. The SAR published communiqué 02-2026 on January 28, 2026, dedicated to this update.

The consolidated text published in February 2026 still uses the 2025 scale, exempt up to 217,493.16 L: it is the SAR-01-2026 agreement that is used here for 2026. The SAR guide dated January 2026 specifies that the scale is adjusted each year according to the price index.

The same guide, citing Article 13 of the law, mentions deductions: education expenses and medical fees up to 40,000 L per year, expenses and fees for personal services up to 80,000 L for those over 65, donations up to 10% of the net taxable pension, and contributions to private pension funds if they are not withdrawn within the period. The annual return must be filed between January 1st and April 30th of the following year, or the next working day (Article 28).

Dividends, capital gains and interest

Three provisions of the consolidated text concern the capital income of a resident:

• Dividends (Article 25): Dividends and profit distributions received by resident or domiciled persons are taxed at 10%. The company withholds and redistributes them; they remain outside the progressive tax scale. The capitalization of reserves or profits is exempt.
• Capital gains (Article 10): Capital gains of natural and legal persons, resident or non-resident, are subject to a single tax of 10 % and are excluded from the scale of Article 22. A page of the SAR dated November 28, 2019 confirms this: "single tax of 10 %".
• Interests The text read does not specify a rate for interest on deposits received by a resident. This point is not detailed here.

Non-residents: tax rate on Honduran-source income

Article 5 addresses gross Honduran-source income received by non-residents or non-domiciled individuals. It sets rates for each type of income, the main ones being as follows.

The text specifies that the interest payments referred to in point 7 are recognized when made to unrelated entities; payments between related entities are taxed as dividends. The complete table comprises 13 items; other categories (foreign subsidiaries, transportation, telecommunications, insurance, entertainment, films) are not included here.

Buying real estate in Honduras

Article 44 of the Income Tax Act prohibits the transfer of real estate, and the purchaser from registering it in their name, until the tax authorities have certified that the transferor is exempt from income tax or up-to-date with their payments. Articles 45 and 46 reiterate this requirement for the release of encumbrances and for notaries and land registrars.

Decree 90-90, published on the website of the Superior Court of Auditors, governs the acquisition of urban property in the areas covered by Article 107 of the Constitution. Article 1 applies to individuals who are not Honduran citizens by birth and to companies that are not entirely composed of Honduran partners. The website does not define these areas, does not detail the conditions, and does not provide the date of the decree.

Relationship with France: no agreement

The BOFiP (BOI-ANNX-000306, version of April 29, 2026) only includes agreements and conventions in force on January 1, 2026. Honduras is not included. In the absence of a convention, the tax treatment falls under French domestic law.

• Tax residence in France Article 4 B of the CGI, according to the BOFiP, includes persons who have their home or main residence in France, those who carry out a professional activity there, or those who have the center of their economic interests there.
• Income from foreign sources The instructions for form 2047 (2025 income) require the declaration of income from countries with which France does not have a tax treaty. For securities, they specify that this income does not qualify for a tax credit and must be declared net of any foreign tax withheld.

What this page does not cover

It does not detail inheritance and gift laws, local property taxes, social security, or plans for retirees or new residents. For travel advice, the travel advice sheet on diplomatie.gouv.fr, updated on September 15, 2026, indicates that Honduras is a member of the C4 travel agreement (with Guatemala, Nicaragua, and El Salvador), that the total duration of a continuous stay without a visa in the four countries cannot exceed 90 days, and that the passport must be valid for at least six months from the date of entry. Long-term residence permits are not detailed here. Balmont Conseil is not a law firm or a local tax advisor: local tax matters should be reviewed with a professional based in Honduras. French matters, including the departure declaration and the accounts to be declared, are addressed in our pages on tax residency and exit tax.

What changes depending on your situation

• The place where you actually live and your intention to stay determine resident or non-resident status.
• The nature of your income: salary, dividends, capital gains, rents, interest, royalties.
• The property in question and its location, particularly in the areas covered by Article 107 of the Constitution.
• Your residency situation in France and Honduras, year by year.

The rule depends on your situation. No results are guaranteed.