Vacation Rental Laws in Honduras

Vacation Rental Laws in Honduras

Honduras

Introduction
Introduction to Vacation Rental in Honduras

Honduras, with its stunning beaches, vibrant culture, and rich history, has become an increasingly popular destination for travelers seeking authentic experiences. Popular spots like Roatán, Tegucigalpa, and Copán Ruinas are seeing a rise in alquileres temporales and alquileres a corto plazo, transforming the way visitors experience the country. In 2023, the government reported significant income generated from these short-term rentals, highlighting their growing importance in the tourism sector. Major platforms such as Airbnb and Booking.com have become the go-to places for listing and booking these accommodations, connecting travelers with unique stays that range from beachfront villas to mountain retreats. This surge in short-term rentals not only boosts local economies but also provides property owners with lucrative opportunities, making it a vital component of Honduras' tourism industry.

Overview

Honduras, with its stunning beaches, vibrant culture, and rich history, has become an increasingly popular destination for travelers seeking authentic experiences. Popular spots like Roatán, Tegucigalpa, and Copán Ruinas are seeing a rise in alquileres temporales and alquileres a corto plazo, transforming the way visitors experience the country. In 2023, the government reported significant income generated from these short-term rentals, highlighting their growing importance in the tourism sector. Major platforms such as Airbnb and Booking.com have become the go-to places for listing and booking these accommodations, connecting travelers with unique stays that range from beachfront villas to mountain retreats. This surge in short-term rentals not only boosts local economies but also provides property owners with lucrative opportunities, making it a vital component of Honduras' tourism industry.

Property
Overview

Honduras lacks a dedicated national short-term rental association, but property owners can engage with broader organizations: 1) CANABIRH (National Chamber of Real Estate of Honduras, Tegucigalpa) promotes ethical real estate practices; 2) RREA (Roatán Real Estate Association, Roatán) focuses on high standards in the Bay Islands; and 3) ISTRA (International Short-Term Rental Association) offers global resources and networking. These provide advocacy, networking, and educational resources. While membership isn't mandatory, it offers valuable support and information.

Property
Interested in learning more about this country? Please complete the form below.

Lodge Compliance may contact me about products and news. I understand I can change my preferences at any time per Lodge Compliance’s Privacy Policy.

Awesome! Your submission has been received!
Oops! Something went wrong while submitting the form.
short term rentals
What is Vacation Rental in Honduras?
What are short Term Rentals in the Country?

In Honduras, short-term rentals are commonly referred to as "alquileres a corto plazo" or "alquileres vacacionales", which translate to "short-term rentals" and "vacation rentals" in English. These terms encompass a variety of temporary lodging options such as apartments, houses, villas, and cabins that are rented for short durations, typically ranging from one night to a few weeks. In English, these accommodations are often categorized under terms like "vacation rental", "holiday rental", "tourist accommodation", or "transient rental" on popular booking platforms like Airbnb, Booking.com, and Vrbo.

The definition of short-term rentals (STRs) in Honduras aligns with global standards: STRs are privately owned properties rented out to travelers or temporary residents for periods shorter than traditional leases. These rentals provide alternatives to hotels, offering greater flexibility, privacy, and often a more authentic cultural experience. STRs play a pivotal role in the country's tourism infrastructure, catering to a growing demand for personalized and cost-effective travel accommodations.

Is Subletting Legal?
Is Subletting Legal in Honduras?

Subletting laws in Honduras are not explicitly outlined under a national framework for short-term rentals, but they fall under general property and contract laws. Property owners have the freedom to lease their properties as short-term rentals, provided they comply with municipal zoning laws and tax requirements. However, tenants face more restrictive conditions.

For tenants, subletting a rented property for short-term rental purposes requires explicit permission from the landlord. Most lease agreements include clauses that either prohibit subletting or mandate the landlord’s prior written consent. Additionally, tenants must adhere to local housing regulations and homeowner association rules if applicable. Without proper authorization, engaging in short-term rentals may lead to legal consequences or eviction. Tenants must consult landlords and local authorities before listing properties on short-term rental platforms to ensure compliance with legal and community standards.

National Association for STR Owners
What is the maximum length of stay in Honduras?
What is the maximum length of stay?

Currently, there isn't a nationwide maximum length of stay for short-term rentals in Honduras. The maximum length of stay can vary depending on the specific property, the platform used for booking, and local regulations. However, in popular cities like Tegucigalpa, Roatán, and Utila, the maximum length of stay for short-term rentals on platforms like Airbnb and Vrbo is often 30 days. Some properties may have shorter or longer maximum stays, so it's best to check the specific listing for details.

It's important to note that local regulations may also impact the maximum length of stay in certain areas. In some communities, local ordinances or homeowner association bylaws might establish maximum stay limits for short-term rentals to preserve residential tranquility or manage the flow of tourists. For example, limits could vary based on the property's classification, such as single-family homes versus multi-unit buildings, or the intended purpose of the rental (e.g., leisure versus business). Hosts are advised to familiarize themselves with any regional or municipal policies and adjust their rental terms accordingly to ensure compliance.

Is there any National Registration Requirement or Permit?

In Honduras, short-term rental regulations are managed at the local level, not through a centralized national system. Requirements vary by municipality, so it’s essential to check local rules.

Key Steps for Compliance:

  1. Consult Local Authorities: Contact your municipal office to confirm rental regulations.
  2. Business Licensing: Some areas may require a license to operate a rental.
  3. Tax Compliance: Understand and pay applicable local taxes, such as lodging or tourism taxes.
  4. Safety Standards: Follow local health and safety regulations, including fire safety and sanitation.
  5. HOA Rules: If applicable, review your homeowners association’s policies on rentals.

Common Documentation:

  • Proof of ownership (property deed).
  • Valid government-issued ID.
  • Tax identification number (if applicable).
  • Insurance documentation.
  • Safety compliance certificates (if required).

Fees:

Fees vary by municipality and may include licensing, inspections, or rental income taxes. Always verify specific requirements with local authorities.

Is there a need for Permission from Landlord/Local Council/Neighbors?

Operating a short-term rental in Honduras often requires navigating local rules and community standards. While there is no national policy mandating permission from landlords, local councils, or neighbors, many municipalities and residential communities have their own regulations.

For properties in residential zones or managed communities, such as condominiums, hosts may need to inform or seek approval from homeowners' associations or local governing bodies. Landlords retain the right to prohibit short-term rentals within lease agreements, and tenants must secure their consent to avoid breaching contractual obligations. Similarly, in some neighborhoods, community guidelines might require neighbor consultation to maintain good relations and ensure compliance with local standards.

Is Short-term rental Income taxable?

In Honduras, short-term rental income is subject to: 1) Income Tax (0-25% progressive rates, with a potential 1.5% additional tax on gross income over HNL 10 million); 2) 15% VAT (18% for certain items like alcohol); 3) Annual Property Tax (HNL 3.50/thousand for urban, HNL 2.50/thousand for rural properties); 4) 1.5% Land Transfer Tax (on property acquisition); and 5) Municipal taxes (HNL 0.30-0.15/thousand, varying by municipality). Consulting a local tax expert is recommended.

Is there any National Tourism Fund or Tourist Tax?

Honduras does not impose a national tourism tax uniformly across the country. However, in prominent tourist areas like Roatán, local governments may charge additional levies on short-term rentals to fund tourism infrastructure, environmental preservation, or community projects. Transparency in communicating these fees to guests is critical to maintaining trust and ensuring a smooth booking process.

Is there any Guest Registration and Reporting Requirement?

As of now, there isn't a specific national law in Honduras requiring hosts to register guest information with national authorities like immigration or local police for short-term rentals. Although national laws on guest registration are not clearly defined, certain municipalities or regions may have implemented specific measures for tracking tourist activity. Hosts are encouraged to maintain accurate guest records, including names, identification details, and dates of stay, and consult local government offices to clarify reporting obligations.

Is there any National Health and Safety Requirements?

Honduras lacks specific national health/safety standards for short-term rentals, but hosts must follow general residential property regulations. This includes fire safety (detectors, extinguishers, evacuation plans), electrical safety (inspections, surge protectors), water safety (clean water, pool/hot tub maintenance), and a first-aid kit. Hosts should also comply with local building codes, potential health inspections (especially in tourist areas), and zoning laws. While not explicitly mandated for STRs, these measures are crucial for guest safety and mitigating legal risks. Staying informed about local ordinances is encouraged

Is there any Platform Accountability Requirement?

As of now, Honduras does not have specific national regulations that mandate online platforms to ensure that short-term rental listings comply with local laws and regulations. The responsibility for compliance primarily rests with individual property owners and hosts. However, international platforms like Airbnb and Booking.com often implement their own policies to promote responsible hosting, which may include guidelines on safety, legal compliance, and guest interactions. Hosts are advised to familiarize themselves with both the platform's policies and local regulations to ensure full compliance.

Is there any Anti-Discrimination Law?

Honduras has national laws that prohibit discrimination in various sectors, including housing and accommodations. The Honduran Constitution guarantees equality before the law and prohibits discrimination based on race, gender, religion, or social status. While there is no specific legislation addressing discrimination in short-term rentals, these constitutional provisions extend to all forms of housing, including temporary accommodations.

The Penal Code, as amended by Decree No. 23-2013, includes provisions that address discriminatory actions:

  • Article 321: This article stipulates penalties of three to five years' imprisonment and fines ranging from four to seven minimum wages for individuals who arbitrarily and illegally restrict or deny the exercise of individual and collective rights, or refuse to provide professional services, based on factors such as sex, gender, age, sexual orientation, gender identity, marital status, ethnicity, nationality, religion, political opinion, disability, health conditions, physical appearance, or any other distinction that violates human dignity.
Is there any Data Sharing Requirements?

Currently, there is no national mandate in Honduras requiring short-term rental platforms to share data with government authorities. The absence of such regulations means that platforms are not legally obligated to provide information about hosts or guests to the government. While platforms like Airbnb and Booking.com often collaborate with governments in various countries to ensure compliance and may share data as part of these agreements, such practices are typically established through specific local or national regulations.

However, hosts should remain vigilant, as future legislation could introduce data-sharing requirements, especially as the short-term rental market continues to grow. Staying informed about any changes in local laws is essential for compliance.

Is there any National Insurance Requirement?

Honduras does not have a national requirement obligating hosts to obtain liability insurance for short-term rental properties. However, securing such insurance is highly recommended to protect against potential risks, including property damage, personal injury claims, or other liabilities that may arise during a guest's stay. While not mandated, having appropriate insurance coverage can provide peace of mind and financial protection for hosts. Hosts should consult with insurance professionals to understand the best options available for their specific circumstances.

Is there any National Zoning law/Cultural Heritage law?

In Honduras, the protection of culturally and historically significant areas from the impacts of short-term rentals is governed by several key regulations:

  1. Cultural Heritage Protection Law (Decree No. 220-97): This law declares all cultural manifestations of living indigenous peoples as cultural heritage, emphasizing the preservation of intangible cultural heritage.
  2. Law for the Protection of the Cultural Patrimony (Decree 229-97): This legislation outlines measures to safeguard the nation's cultural patrimony, including archaeological sites and historical monuments. It mandates that any activities, such as short-term rentals, within or near these protected areas must comply with specific regulations to prevent adverse effects on cultural heritage.
  3. Municipal Regulations: Local municipalities may implement additional zoning laws and ordinances to regulate short-term rentals, particularly in areas of cultural or historical significance. These regulations can include restrictions or requirements to ensure that such rentals do not negatively impact the preservation of cultural heritage.

Hosts operating short-term rentals in Honduras should consult both national laws and local municipal regulations to ensure compliance, especially when their properties are located in or near culturally or historically significant areas. Adhering to these regulations helps protect the nation's rich cultural heritage while promoting responsible tourism.

Is there any Environmental Regulations that affects STR?

While Honduras has environmental regulations aimed at protecting natural resources and promoting sustainability, there are no specific nationwide requirements tailored exclusively for short-term rentals. However, hosts are encouraged to adopt environmentally friendly practices, such as waste reduction, energy conservation, and water management, to align with the country's broader environmental goals. Implementing sustainable practices not only benefits the environment but can also enhance the appeal of the rental property to eco-conscious travelers.

Is there any National Tenant Protection Law?

While there isn't a specific law explicitly protecting long-term tenants from eviction for the purpose of converting their rental units into short-term rentals in Honduras, there are general tenant protection laws that can provide some level of protection.

Key Protections for Long-Term Tenants:

  1. Lease Agreements: A well-drafted lease agreement is crucial. It should clearly outline the terms of the tenancy, including the duration, rent amount, and any restrictions on the landlord's ability to terminate the lease early.
  2. Eviction Procedures: Honduran law outlines specific procedures that landlords must follow to evict a tenant. These procedures typically require a valid reason for eviction, such as non-payment of rent or violation of the lease agreement. Landlords cannot arbitrarily evict tenants without just cause.
  3. Just Cause Eviction: To evict a tenant, a landlord must have a legitimate reason, such as failure to pay rent, property damage, or violation of lease terms.
  4. Notice Period: Landlords are generally required to provide tenants with adequate notice before initiating eviction proceedings. The specific notice period may vary depending on local regulations and the reason for eviction.

It's important to note that the specific protections available to long-term tenants in Honduras may vary depending on local regulations and individual circumstances.

Is there any Reporting Requirements for Foreigners?

Honduras does not have specific national requirements mandating hosts to report foreign guests to immigration authorities for short-term rentals. However, maintaining accurate records of all guests, including identification details and duration of stay, is considered good practice. Such records can be valuable for security purposes and in case of any disputes or legal inquiries. Hosts should stay informed about any local ordinances that may impose additional reporting obligations.

Is there any Digital Platform Regulation Compliance?

Currently, there are no specific national regulations in Honduras that require digital platforms to verify compliance with local laws before listing properties for short-term rentals. The responsibility for ensuring that a property complies with zoning laws, safety standards, and other regulations primarily falls on the individual host. However, reputable platforms often encourage hosts to adhere to local laws and may provide resources or guidelines to assist in compliance. Hosts should proactively ensure their properties meet all legal requirements to avoid potential issues.

Is there any Consumer Protection Law that affect STR?

While Honduras doesn't have specific, dedicated laws for short-term rental consumer protection, rental agreements are governed by national laws designed to protect consumers and ensure fair practices. Key legislation includes:

  1. Consumer Protection Law: This law establishes the rights and obligations of consumers and suppliers, aiming to promote transparency and fairness in commercial transactions. It mandates that all service providers, including short-term rental hosts, offer clear and accurate information about their services, pricing, and terms. The law also prohibits misleading advertising and ensures that consumers have access to mechanisms for lodging complaints and seeking redress.
  2. Civil Code: The Honduran Civil Code outlines general principles of contract law, emphasizing the necessity for agreements to be based on mutual consent and lawful terms. It requires that contracts, including those for short-term rentals, be clear, equitable, and not contain clauses that could be deemed abusive or unfair to the consumer.

These laws collectively ensure that short-term rental contracts in Honduras adhere to consumer protection standards, promoting transparency, fairness, and accountability in the rental market.

Is there any Law that applies to Non-resident Owners?

In Honduras, non-resident short-term rental owners: 1) Can own property (with restrictions within 40km of coasts/borders, often circumvented by establishing a Honduran corporation); 2) Do not need residency to operate rentals; 3) Must pay income tax on Honduran-sourced rental income, annual property tax, and a 10% capital gains tax on property sales. Consulting local legal/tax professionals is recommended.

Is there any classification of STR in the country?

Short-term rentals in Honduras are typically classified based on property type and intended use. Common categories include vacation homes, private apartments, villas, and bungalows. The classification may also extend to distinctions between residential and commercial properties, particularly in areas with specific zoning regulations.

For instance, vacation rentals in tourist hotspots like Roatán may fall under stricter classifications requiring compliance with local tourism or environmental laws. Understanding the classification of a rental property helps hosts comply with relevant regulations and accurately market their accommodations to prospective guests. The lack of a unified national classification system necessitates reliance on municipal guidelines, which vary across the country.

Are there Special National Event Regulations?

During national events and holidays in Honduras, such as Semana Santa (Holy Week) and Feria de San Isidro (La Ceiba Carnival), local authorities may implement additional regulations to maintain public order and safety. These measures can include:

  1. Curfews: Temporary curfews may be imposed to control crowds and ensure safety during large gatherings.
  2. Noise Restrictions: Enhanced noise ordinances might be enforced, particularly in residential areas, to minimize disturbances during festivities.
  3. Increased Security Measures: Authorities often heighten security protocols, including stricter ID verification and increased police presence, to manage large crowds and prevent incidents.
  4. Traffic and Parking Regulations: Temporary changes to traffic flow and parking restrictions are common to accommodate event logistics and ensure emergency access.

These regulations are typically announced by local municipalities in advance of the events. Hosts and visitors should stay informed about specific local ordinances during these periods to ensure compliance and contribute to a safe and enjoyable environment for all participants.

Is there any Penalty for Violating National Rules?

While specific penalties for non-compliance with short-term rental regulations in Honduras can vary depending on the specific violation and local ordinances, potential consequences may include:

  • Fines: Financial penalties can be imposed for various offenses, such as operating without a permit, failing to pay taxes, or violating local noise ordinances.
  • License Revocation: In severe cases, local authorities may revoke the short-term rental license, effectively preventing the property from being used for such purposes.
  • Legal Action: Non-compliance with regulations can lead to legal action, including lawsuits from neighbors or local authorities.
  • Property Seizure: In extreme cases, particularly for serious violations or persistent non-compliance, authorities may seize the property.

It's important to note that local regulations can vary significantly, so it's crucial to consult with local authorities to understand the specific penalties for non-compliance in a particular area. Furthermore, platforms like Airbnb or Booking.com may delist properties that fail to comply with local laws, leading to reputational damage and loss of income

Are there National Rules or Regulations Governing Short-Term Rentals in Honduras?
Are there National Rules or Regulations Governing Short-Term Rentals in the Country?

Honduras lacks national short-term rental regulations, but existing real estate/business laws apply. Key considerations: 1) Varying local municipal regulations (business licenses, permits, zoning); 2) Tax compliance (income tax and 15% VAT); 3) Adherence to safety/health standards; 4) Compliance with HOA rules (if applicable); 5) General property registration with the municipality; and 6) Adherence to consumer protection laws (accurate listings). Consulting local municipal offices and legal experts is recommended.

Is there any National Tax that affects short-term rental?

Honduran short-term rental income is subject to: 1) Income Tax (0-25% progressive rates based on annual income, with a potential 1.5% tax on gross income over HNL 10 million); 2) 15% Sales Tax (VAT) on lodging services; 3) Annual Property Tax (HNL 3.50/thousand for urban, HNL 2.50/thousand for rural properties); 4) Municipal taxes (HNL 0.30-0.15/thousand depending on income and municipality); and 5) 1.5% Land Transfer Tax (on property transfers).

permits, license
Are there any Permits, Licenses, or Registrations for Vacation Rental in Honduras?
Are there any Permits, Licenses, or Registrations for Short-term Rentals in the Country?

In Honduras, short-term rental regulations are managed at the local level, not through a centralized national system. Requirements vary by municipality, so it’s essential to check local rules.

Key Steps for Compliance:

  1. Consult Local Authorities: Contact your municipal office to confirm rental regulations.
  2. Business Licensing: Some areas may require a license to operate a rental.
  3. Tax Compliance: Understand and pay applicable local taxes, such as lodging or tourism taxes.
  4. Safety Standards: Follow local health and safety regulations, including fire safety and sanitation.
  5. HOA Rules: If applicable, review your homeowners association’s policies on rentals.

Common Documentation:

  • Proof of ownership (property deed).
  • Valid government-issued ID.
  • Tax identification number (if applicable).
  • Insurance documentation.
  • Safety compliance certificates (if required).

Fees:

Fees vary by municipality and may include licensing, inspections, or rental income taxes. Always verify specific requirements with local authorities.

Is there any National Association for Vacation Rental owners in Honduras?
Is there any National Association for STR owners in the Country?

Honduras lacks a dedicated national short-term rental association, but property owners can engage with broader organizations: 1) CANABIRH (National Chamber of Real Estate of Honduras, Tegucigalpa) promotes ethical real estate practices; 2) RREA (Roatán Real Estate Association, Roatán) focuses on high standards in the Bay Islands; and 3) ISTRA (International Short-Term Rental Association) offers global resources and networking. These provide advocacy, networking, and educational resources. While membership isn't mandatory, it offers valuable support and information.

National Association for STR Owners

Disclaimer

Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

Stay Compliant with Ease

Access the tools you need to stay compliant and grow your lodging business effortlessly. With Lodge Compliance, navigating regulations has never been easier.

Get Access