Buyer questions
The questions people ask before they buy on Roatan
The same questions come up on every first call, so here are my answers, written the way I would say them across a table. They are my experience, not legal advice. Where a fact is legal, fiscal or medical, each page names the professional who gives you the exact answer for your case.
Question 1: Can a foreigner hold title on Roatan, and when do I need a corporation?
Yes. A foreigner can hold title to one home on Roatan in their own name, within a size limit set by law. Beyond that, or for more than one property, people buy through a Honduran corporation. Your lawyer tells you which route fits.
Read the answer: Can a foreigner hold title on Roatan, and when do I need a corporation?Question 2: Do I need my own title lawyer on Roatan, and what does that lawyer check?
Yes, and it is the one step I will not let a client skip. Your own Honduran lawyer-notary, chosen by you and paid by you, searches the title at the registry, checks the survey against the ground, and holds the deal to paper before any money moves.
Read the answer: Do I need my own title lawyer on Roatan, and what does that lawyer check?Question 3: How do people pay for a home on Roatan: cash, a HELOC, or a mortgage?
In my experience, local banks do not lend to foreign buyers, so most people pay cash. The cash often comes from a line of credit on their home in Canada or the US, or from a sale there. The money moves by wire, in steps your lawyer sets out in writing.
Read the answer: How do people pay for a home on Roatan: cash, a HELOC, or a mortgage?Question 4: What are the closing costs when you buy on Roatan?
Closing costs on Roatan are a few lines: a government transfer tax, a registry fee, your lawyer-notary's fee, and some small items. Together they are a meaningful percentage on top of the price. Your lawyer gives you the exact figure for your property in writing before you commit.
Read the answer: What are the closing costs when you buy on Roatan?Question 5: What taxes and HOA fees will I pay every year on Roatan?
Every year you pay a municipal property tax, which is modest by Canadian and American standards, and, on a condo, the HOA fees. If you rent the home out, tax and permits are added. And whatever you own here still matters on your tax return at home.
Read the answer: What taxes and HOA fees will I pay every year on Roatan?Question 6: Should I rent on Roatan before I buy?
Usually, yes. A season in a rental, including the hot and rainy months, tells you which part of the island you actually like and what it costs to live here. It is the cheapest insurance against buying the wrong home, and I say that as the person who would sell it to you.
Read the answer: Should I rent on Roatan before I buy?Question 7: What about hurricanes, power and water on Roatan?
Roatan sits in the western Caribbean and storms do pass, though the island's position has spared it the worst of many seasons. Power comes from one island utility and does go out; water comes from wells, cisterns and deliveries depending on where you are. The right house, and the right insurance, handle all three.
Read the answer: What about hurricanes, power and water on Roatan?Question 8: What is healthcare like on Roatan, and do I need evacuation insurance?
Roatan has clinics, pharmacies, dentists and a hospital for everyday care and emergencies. Serious or specialised care means a flight to the mainland or home. That is why most foreign owners carry medical evacuation insurance, and why I ask about your health before I ask about your budget.
Read the answer: What is healthcare like on Roatan, and do I need evacuation insurance?Question 9: Residency or perpetual tourist: which one fits a Canadian or American on Roatan?
You do not need residency to own a home here. Snowbirds and part-time owners usually come and go as visitors, within the days the law allows. People who move here full time usually apply for residency, often under a retiree or income category. The rules change, so an immigration lawyer gives you the current ones.
Read the answer: Residency or perpetual tourist: which one fits a Canadian or American on Roatan?
Figures, rules and deadlines change. Every page tells you who to confirm with.
Your question is not here?
Ask it on a 20-minute call. If I do not know, I will tell you who does.