Roatan, located in Honduras’ Bay Islands, has become a top destination for foreigners seeking beachfront homes, investment properties, and a relaxed Caribbean lifestyle. One of the most common questions we hear is: Can foreigners buy property in Roatan? The answer is yes—and the process is more straightforward than many expect when guided properly.
This step-by-step guide explains how foreigners can safely and legally buy property in Roatan.
Understand Property Ownership Laws in Honduras
Foreigners can own property in Honduras with the same rights as Honduran citizens, including in Roatan. The only restriction applies to properties located within 40 kilometers of international borders or coastlines, which require a legal structure such as a Honduran corporation. Since Roatan is an island, this is standard practice and well established.
Most foreign buyers purchase property through:
-A Honduran corporation
-Or directly in their personal name (depending on property type and location)
A local attorney will advise on the best structure for your situation.
Define Your Property Goals
Before beginning your search, clarify:
-Personal use vs. rental or investment property
-Budget range (including closing costs)
-Preferred location (beachfront, hillside, community living)
-Short-term or long-term rental potential
Popular areas in Roatan include West Bay, West End, Sandy Bay, French Harbour, and East Roatan.
Work with a Trusted Local Real Estate Professional
Choosing a licensed real estate professional with local experience is critical. A reputable agent will:
-Verify property titles
-Explain zoning and HOA rules
-Coordinate with attorneys and notaries
-Represent your interests throughout the process
Local knowledge is especially important in island real estate.
Conduct Due Diligence
Once you’ve selected a property, proper due diligence is essential. This includes:
-Title search and verification
-Confirmation of boundaries and surveys
-Review of permits and construction approvals
-Verification of utility access and easements
This step protects you from future legal or ownership issues.
Make an Offer and Sign a Purchase Agreement
Offers in Roatan are typically made in writing. Once terms are agreed upon:
-A purchase and sale agreement is drafted
-A deposit (commonly 10%) is placed in escrow
-Timelines for closing are established
All contracts should be reviewed by your attorney.
Close the Transaction
At closing:
-Final funds are transferred
-The deed is signed before a Honduran notary
-Property is registered in your name or corporation
Closing costs generally range from 5% to 7% of the purchase price and include legal fees, transfer taxes, and registration costs.
Register Utilities and Property Services
After closing, you’ll arrange:
-Utility connections (electricity, water, internet)
-Property insurance
-Ongoing property management or maintenance services
Many foreign owners choose professional property services to manage their investment while abroad.
Consider Property Management and Rental Options
If you plan to rent your property, professional property management can help with:
-Guest bookings and communications
-Cleaning and maintenance
-Financial reporting and local compliance
This ensures your property is well-maintained and income-producing.
Why Buy Property in Roatan?
-Strong tourism demand
-Growing vacation rental market
-Affordable Caribbean real estate
-Stable foreign ownership laws
-Exceptional natural beauty and lifestyle
Buying property in Roatan as a foreigner is a well-established and secure process when done correctly. With the right professional guidance, you can confidently invest in one of the Caribbean’s most desirable destinations.
If you’re considering buying property in Roatan or need support after purchase, Bay Islands Property Services is here to help—every step of the way.