Owning here is cheaper to carry than most people expect, and I would still like you to see every line before you buy, because the small ones are the ones that get forgotten.
The first line is the municipal property tax. It is set by the municipality, calculated on the government's cadastral value of the property rather than on the price you paid, and the rate differs between urban and rural land. By the standards of Ontario, Quebec or most of the United States it is modest. It is paid once a year, and paying early in the year can earn a discount. Your lawyer checks that it is paid up to date before you close, because an unpaid property tax can follow the property to you.
The second line, if you buy a condo or a home in a gated community, is the homeowners' association fee. It pays for the pool, the road, the security, the dock, the generator, whatever that community shares. The amount varies from one building to the next and so does what it covers. Before you make an offer, ask for the last statements and the rules, read how the fee has moved over the years, and read the rental rules in particular. If you plan to rent the home out and the building forbids it, no price makes up for that.
The third set of lines appears only if you rent the home out. Rental income is taxed here, and short-term rental needs its registrations: tourism, health, tax and municipal permits, in the names your lawyer and accountant tell you. A good property manager knows the list and keeps it current. If you do not rent, none of this applies.
The fourth line is the one Canadians and Americans forget: home. Owning a property abroad, and any income from it, still belongs on your tax return at home, and there are reporting rules for foreign property that carry their own penalties if missed. Honduras and your country may or may not have an arrangement on double taxation. That is a question for an accountant who does cross-border returns, not for me and not for your Honduran lawyer.
And on the day you sell, there is a tax on the gain, with a withholding mechanism when the seller does not live here, and special rules for the Bay Islands' tourism zone that may or may not apply to you. Think about the exit on the day you buy. Accountants are boring like that.
What people usually do
- Buyers ask for the HOA statements and rules before the offer, and read the rental rules first.
- They have their lawyer confirm the property tax is paid up before closing.
- Those who rent out use a property manager who handles the permits and keeps records.
- They tell their accountant at home about the property in the year they buy it.