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Honduras

Central America · HN · 0 treaties

What is the tax system in Honduras?

Honduras operates a territorial tax system. The top personal income tax rate is 25%, and the corporate tax rate is also 25%.

Tax profile

Corporate income tax 25%
Withholding — dividends 10%
Withholding — interest 10%
Withholding — royalties 25%
VAT / GST (standard) 15%
Personal income (top rate) 25%
Capital gains 10%
Tax system Territorial
Residency threshold 90 days
Exit / departure tax No
CFC rules No
Transfer pricing Basic
Digital nomad visa No
Digital services tax none
Global minimum tax (Pillar 2) None

Common questions

What are the main tax rates in Honduras?
The top personal income tax rate in Honduras is 25%, and the corporate tax rate is 25%. Capital gains are taxed at 10%, and dividends have a 10% withholding tax. The standard VAT is 15%.
How long does it take to become a tax resident in Honduras?
It takes 90 days to establish tax residency in Honduras.
Does Honduras have tax treaties?
Honduras currently has 0 tax treaties.

Tax residency

Easy to leave

What makes you a tax resident — and how hard it is to stop being one.

Tax residency for individuals is triggered purely by a short physical‑presence test (3 months), with no citizenship, domicile, or multi‑year tail rules, so stopping residency is generally achieved by leaving Honduras and remaining below the 3‑month threshold in subsequent years.

Source: Servicio de Administración de Rentas (via KPMG summary of Honduran income tax rules)