Measurement System, Property Tax, Medical Services, Schools,
Investments, Stable for the Investor?...
Metric is the legal system. Normally deeds are recorded in metric and Honduran varas, which are slightly smaller than a square yard. The English system is common on the islands and along the Caribbean coast.
Property taxes are payable annually to the local municipality corresponding to the properties location. The property tax is based upon the value and type of property being transferred. For more information on this topic, please include with your form request.
In an emergency, Miami, Houston, and New Orleans are only 2 hours away by plane. Dental clinics and Optometrist are numerous and many of the Honduran doctors were trained in the U.S. and Europe.
Access to quality medical facilities declines with distance from the major cities.
The costs are much different for medical services in Honduras. Most Hondurans only pay $3.00 for an emergency medical care.
Primary education, ages 6 to 12, is compulsory and free. Secondary education is not mandatory. An estimated 91 percent of children attend primary school and only 21 percent continue to middle and high school. All students that complete primary education are required to teach at least two illiterate adults to read and write.
Foreign residents usually send their children to one of many bilingual schools. The curricula of most of these schools qualify for U.S. credits.
During the 1990's, Honduras has been experiencing a rapid growth and expansion, as the country develops and implements new market-based strategies to attract the foreign investor and strengthen its economy. The GDP grew by 5.6 percent in 1992 and declined in 1993 by 3.7 percent largely due to lower agricultural output of its primary exports, coffee and bananas, brought on by unfavorable weather and price conditions. Higher interest rates on loans also slowed the recovery.
The U.S. is responsible for over half of the country's exports and around 60 percent of its imports. Although the country is dependent on on the export of bananas, coffee, rice, and other agricultural products, the country is trying to diversify through a fledging of non-traditional exports.
Considered a heavy debtor nation, Honduras' external debt has been reducing through loan forgiveness and loan negotiations by its major creditors. In 1994, the country was admitted into the General Agreement on Tariffs and Trade (GATT), as well as the Multinational Investment Guarantee Agreement (MIGA). Laws to protect intellectual property rights passed in 1993.
Honduras has a free trade agreement with Guatemala and El Salvador. The Honduran congress approved the country's participation in the Central America Tariff and Customs regime, which enables the five Central American countries to establish a common customs and tariff policy. Import duties and surcharges have been reduced or eliminated in recent years, and the country is currently modifying its country's labor code and working to promote environmental protection.
Recent economic developments and traditional politics have combined to make Honduras more attractive than ever to the foreign investor. Foreign companies have never been nationalized and have never encountered major disagreements with the government. The severe energy crisis of 1994 has been resolved and the country is very committed to economic growth and foreign investment.
The investment law of 1992 reduced government control, guaranteed profit remittances, facilitated foreign exchange on the import goods required for business operation and established Constitutionally guaranteed treatment for both national and foreign investors. In an effort to combat bureaucratic red tape the government established special "Centrex" offices in Tegucigalpa and San Pedro Sula in 1987 to speed the export process.
Providing the investment is properly registered, there are currently no restrictions on capital repatriation, however control regulations have slowed the process due to the low priority given this use of foreign exchange. Operating income is not subject to tax.