Home is not just where you lay your head at night. Home is where the heart is.
Are you looking for the perfect slice of the planet to call home?
Preferably, a place with stunning beaches, where your days begin with sand between your toes.
Imagine waking up to a warm sunny morning with a cool breeze in your face.
A place with breathtaking scenery, where deep crystal clear waters run further than the eye can see.
If you’re looking to wake up to your Caribbean dream every other morning we’ve got the perfect place for you.
A little hideaway among the Bay Islands called Roatan.
We’ve put together an entire guide to help you find your dream home out on the Caribbean seas.
Enjoy!
Introduction to Roatan, Honduras
Roatan is a tropical haven nestled in the warm embrace of the Caribbean, located 40 miles off the Northern Coast of the country of Honduras, between Utila & Guanaja.
It’s home to the world’s second-largest reef, the Mesoamerican Barrier Reef.
The island is 40 miles long, and 3 miles wide, with a population estimated between 100,00-120,000.
The widest spot on the island is Brick Bay Point, measuring 5 miles wide.
This hidden Jewel of the Bay Islands offers a unique blend of natural beauty, vibrant culture, and a thriving property market.
The island’s property market is an irresistible haven for those seeking a slice of Caribbean paradise.
Buying Property in Roatan
Can a non-citizen purchase property in Roatan?
Yes, you can. Honduran government encourages foreigners to consider purchasing property in the country and Roatan has proven to be one of the popular places for any foreigner to call home along the Bay Islands.
An individual foreigner may purchase up to 0.74 acres of land (3,000 square meters) for residential use.
However, you will need to register a Honduran corporation if you are thinking of purchasing larger properties.
A registered Honduran corporation is allowed to purchase land of any size above 0.74 acres.
Best Places to Buy in Roatan
Deciding the best location for your Caribbean dream home is the first step to actually owning a part of this enchanting isle.
While there are very many amazing places you could potentially live in within Roatan, you should first figure out the kind of neighborhood that best suits you.
Being a divers’ paradise, the majority of people looking to catch a wave in Roatan seek out the numerous diving spots spanning both the North Coast and the Southern Isle.
These places are amazing for vacationers looking to have a good time on the island, but most people who are looking to make Roatan home don’t live in these spots.
West End is a hip village along Halfmoon Bay that offers quite a spectacular view of the majestic reef waves.
It’s an amazing destination for tourists, specifically the younger generation (those in their 20’s), to hit the cafés, bars, and discos on their evening diversions.
If you’re looking to spend some good money on the island for a nice time, then West Bay is the place for you.
West Bay is especially known for wealthy expats with deep pockets who are looking to live their Caribbean dream to the fullest.
The place is packed with welcoming cafés, lively beach bars, and of course, a beautiful beach.
You’ll also see glamorous houses perched on panoramic hills with an exceptional view.
The East end is well spread out and remote, with a more natural feel to it.
It’s definitely less crowded than other parts of Roatan, like the West End, and has a well-maintained natural habitat that provides its residents with a sense of raw country living.
Some of the most popular residential places on the East end are Calabash Bight, Port Royal, and Camp Bay.
East End has a good number of expats who enjoy the privacy of living on remote bays, zipping to and from their favorite hangout spots on their boats.
If you’re looking to buy property in Roatan, then your best bet is to search the East End.
Property Ownership in Roatan
So you’re really hell-bent on purchasing property in Roatan, huh?
When you buy property in Roatan you get amazing property prices and incredible purchase value.
Primarily because of the continuous rise in real estate value due to an ever-increasing demand, as more and more non-citizens try to own their piece of Bay Islands.
However, before you make the leap, you’ll have to decide whether you want to become a resident or remain a visitor.
Do I Need a Honduran Residency To Have Property in Roatan?
No, you don’t need to become a resident to have property in Roatan.
As long as you’re visiting the place for less than 90 days, you can easily get a piece of property for residential use during your visit.
Your real estate agent can easily help you figure that out, preferably through a licensed attorney.
However, if you’re looking to move to or stay in Roatan longer, it is best that you get residency.
And in case you decide to stay longer than 90 days, you can always get an extension.
The National Government of Honduras provides extensions for visitors, up to 30 days with each extension.
In Honduras, there are numerous kinds of residency.
You may be eligible for retirement residence if you have $2,000.00 or more in retirement income per month that doesn’t have to be from Honduras.
It could take the form of a pension or verifiable investment income.
The advantage here is that you can bring in your personal items as well as a used or a new car entirely duty-free.
Under this residency, a retiree can launch a small company in Roatan, either a brick-and-mortar business or an e-business, if they are interested in working on their own terms.
One way to accomplish this would be to form a Honduran Corporation.
Alternatively, there are two other types of residency available: investor’s residency and “rentista” residency which let you live off of whatever kind of income you make either in or outside Honduras.
You will have to provide a passport, a police report, and a marriage license if your spouse is also applying.
If you are bringing your children with you, you’ll also need to provide their birth certificates and a Honduran health certificate.
The process typically takes six to twelve months.
The initial cost is $1,500 and may vary depending on the number of persons involved and the type of residency being applied for.
However, this information is subject to change at any time, based on the relevant authorities.
Therefore, before the process begins, ask your agent or broker for the official names and contact information of a reputable and licensed Honduran attorney to help you do it right.
The Buying Process
Buying is generally better than renting in the Caribbean Islands due to increasing property values and potential for investment growth.
It is the best choice for those who plan to stay long-term.
Renting is better for those who want to visit Roatan before committing, and it’s also ideal for those who value flexibility.
The average price per square foot varies depending on location and property type.
West Bay and Sandy Bay are more expensive than other areas, while the most affordable areas are in the interior of the island, particularly in the East End.
The East End offers such an amazing property investment opportunity.
Buying property is a fairly simple process in Roatan, but first, you’ll need to find a reputable real estate agent to help you find properties that fit the description you have of your dream home.
Whether you’re interested in a condo you prefer to choose from beachfront homes, or would like to secure a second mortgage on the island, there are some extremely affordable listings on sale.
After viewing a couple of listings and are ready to settle for the one you like most, an “Offer to Purchase” document is drawn up and signed by both you the buyer, and the agent/broker, after agreeing on the terms which include details like purchase price, payment structure to be used e.t.c.
The “Offer to Purchase” is presented to the representatives of the seller together with a deposit, which is usually about 10% of the price of the property which is held in escrow until the sale is closed.
With these, the property is taken off the market and the legal purchase process kicks off.
At this point, your agent should engage a reputable Honduran attorney to work on the necessary documents and legal procedures required for the purchase including the title search, requesting recent surveys, and more.
Necessary paperwork is completed, and closing documents are generated immediately.
The buyer and the seller, or their representatives meet to sign the Notary Protocol (the closing documents).
Once the paperwork is completed, the buyer transfers the remaining cash to the seller, via escrow, marking the end of the transaction.
Assuming that there aren’t any hiccups along the way, the sellers will receive the payment from escrow. The registered title from The Honduran government takes 6 + months.
Budgeting for Your Dream Property
A 1,000 Sq Foot, 1-bedroom home can be purchased for under $199,000.
Top-tier locations like West Bay West End and Sandy Bay are more expensive, but budget-friendly options are available on the East End, in areas like Coxen Hole and French Harbour.
Another advantage of buying property in Roatan is that the cost of living, including groceries and utilities, is generally lower than in the United States.
Maximizing Rental Income of Your Roatan Real Estate
For anyone looking to invest in a piece of land or some premium Roatan real estate, but aren’t looking to settle permanently just yet, there is the option of renting out the property while you’re away.
This is a great investment for any non-Honduran citizen who might still have ties to their country of origin.
Because long-term rentals are less common on Roatan Island, with short-term rentals being more popular, targeting tourists, divers, and digital nomads can provide a lucrative rental income.
Rental yields vary depending on location and property type and investing in Roatan real estate can provide a promising appreciation in property value.
Can I Get a Mortgage or Other Form of Financing to Buy Real Estate in Roatan?
Yes, you can. It’s possible to get a loan or other form of financing, including a mortgage, preferably from your local bank to finance your property purchase.
Several banks in Roatan could channel the payment from your local bank to the buyer over at Roatan.
Is Roatan Real Estate Worth the Investment?
Getting yourself a residential property, a piece of land or a condo in Roatan might just be the best gift you ever buy yourself.
Additionally, investing in Roatan real estate may prove to be extremely lucrative for investors looking to multiply their money due to the rate of land and property appreciation.
However, before making such a huge decision, buyers should consider their specific circumstances as well as the potential challenges and risks that might result from the process.
It’s essential to understand the real estate market in Roatan Island before making a purchase.
It is best you visit Roatan and experience the island’s stunning beaches and vibrant culture before making a decision.
But most importantly, get yourself a reputable real estate agent like Wendy Roatan Realty to ensure you get the best value for your money on your Roatan dream home.
FAQ’s
Is it Safe to Buy Property in Roatan?
While we know that there is always a risk of encountering crime anywhere in the world and that bad things often happen to bad people, you can cross insecurity off your list of concerns for Roatan.
Except for petty crimes like theft, it is extremely rare to experience a lack of security while in Honduras.
If you lock your doors at night, apply common sense, and exercise responsibility throughout, you have nothing to fear.
Is Roatan Politically Stable?
Relax. The country of Honduras is politically stable. Despite its history of political instability and military rule in 1821, the country has undergone a great democratic transition since 1980, and the threat of political instability is far from becoming a reality.
So, you can comfortably cross that off your list of concerns as well.
Should I expect to Pay Closing Costs for Real Estate Transactions?
You will have to pay about 10% of your real estate purchase price to cater for closing costs associated with real estate transactions as you would in many other countries.