[vc_row][vc_column][vc_column_text]Honduras is one of the best tourist destinations in the Central American region, it has attractions for locals and foreigners, our excellent geography offers beautiful and warm white and black sand beaches, archaeological parks, natural parks, biological reserves, lakes, among others; all framed in the Lenca, Maya, Sol Playa, and Adventure routes. The natural wealth that our country has makes it possible to encourage and promote foreign and national investors to consider this area as a potential investment. That is why Honduras is committed to tourism investment with the creation of theLawTourism Incentiveswhich, by the way, has been in force sinceAugust 17, 2017, by Decree 68-2017and although it has not been exploited as we would like, its main objective is to encourage and promote the tourism industry in the country, through the creation of Tax Incentives and Benefits, for which the National Program for the Generation of Employment and Economic Growth, the government and business sector are betting on projecting 250,000 new sources of employment, among other benefits. The tax benefits offered by this regulation put us on a par with other countries in the region since it is based on the application of theGuiding Principles for Tax and Tourism Investment Policy as follows:Cost/Benefit; Competitiveness; Equity; Equality; Joint Responsibility; Legality; Proportionality; and Transparency. Individuals or legal entities investing in projects under this Law may benefit from the following:
- Deduct as an expense from your net taxable income, the total interest paid for credit purchases with mortgage guarantee or financial leasing of apartments, homes or time-share accommodations, for the first two hundred and fifty (250) average minimum wages, of their purchase or lease value.
- Establish investment trusts in real estate or infrastructure projects as investment vehicles directly linked to tourism activities classified by the Honduran Tourism Institute (IHT).
- Investments financed by capital contributions provided by natural and legal persons who are shareholders or holders of shares in a company that owns or operates through a special purpose vehicle of a tourism project qualified by the Honduran Tourism Institute (IHT).
- These investment vehicles may only purchase, sell, or rent real estate and must have a minimum of twenty-five (25) natural person investors, none of whom may represent more than twenty percent (20%) of the capital to be invested. Legal entities may not participate in these mechanisms. Pension funds, savings and credit cooperatives, and housing cooperatives are exempt from this provision.
- Investment vehicles are exempt from income tax, and their investors must pay capital gains tax on the profits they receive.
The following may avail themselves of the benefits of this Law:Natural or legal persons engaged in tourism services and activities, in accordance with the parameters of this Law.In order to continue promoting tourism, the tax amnesty has been extended for the payment of interest and fines for non-payment to tourism projects currently in operation that have not obtained their environmental license and renewal and/or Environmental Measures Compliance Report (ICMAS) from the Secretariat of State for Energy, Natural Resources, Environment and Mines (MIAMBIENTE). At Lexincorp, we have a qualified team to advise and protect your investment in the tourism sector, and to ensure you obtain the best benefits under this Law. For more information, please send your inquiries.
