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Honduras
Individual - Income determination
Last reviewed - 27 February 2026Employment income
Compensation includes salary, premiums, living allowances, housing allowances, tax reimbursements, benefits-in-kind, house, car, retirement benefits, and any other compensation-in-kind. There is no concession to a foreign employee.
Individuals with annual compensation of L 228,324.32 or less are tax exempt.
Non-residents are liable only for the applicable withholding taxes (WHTs), depending on the nature of the local income.
Capital gains
Capital gains in Honduras are taxed at 10%.
For no‑resident sellers, the purchaser must withhold 4% of the transaction value as an advance payment of the tax.
For no‑resident sellers, the purchaser must withhold 4% of the transaction value as an advance payment of the tax.
When the payer is a government entity, a 10% withholding tax applies to capital gains arising from purchases, indemnifications, and transfers of rights or securities.
Exempt income
The following income is tax exempt:
- Income from investment in bonds issued or guaranteed by the government.
- Income from pension funds.
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