FAQ: Buying Property in Utila, Honduras 🇭🇳🏝

Thinking about purchasing real estate in Utila or Roatan? Here are the most common questions we get from buyers!

🏡 Can Foreigners Own Property in Honduras?

Yes! Foreigners can own property in Honduras up to 3/4 of an acre with full title. If you want a larger or an additional property, you’ll need to create a Honduran corporation. In fact, in 2023, about 90% of our purchasers were from the U.S.A. or Canada! So you’re in good company! I’m Canadian, and my husband is German.

💰 What Are Property Taxes Like?

Honduras has low property taxes—just 0.25% of the purchase price per year.
For example, a $500,000 home = $1,250/year in property taxes.

🏦 Can I Get Financing?

Utila is still a cash market, which is great for buyers, since it keeps the costs low. Some sellers may offer owner financing, typically requiring 50% down with 3–5 year terms, but this is rare.

⚡ What Utilities Are Available?

It depends on whether the property is grid-tied or off-grid.

On-Grid Homes: Power from the local electric company UPCO, with bills depending on usage.
Off-Grid Homes: Solar power.
Water Supply:
- Most of the ‘in-town’ properties have Municipal water services
- Other properties rely on rainwater catchment
- Others have wells
- And some are serviced by rain water catchment and private water services.
- Water supply alternates direction to town each day. You must fill your water cisterns on the days you’re scheduled for water supply. Then you’ll feed the water to house, from your storage tanks.

Example: The Mar Y Gold home is 100% off-grid (solar + rainwater, with augmented private water services), while Coral Cove Estate is on-grid (power + rain water catchment with well water for the toilets).

⚡ What Are Utility Costs?

It depends on whether the property is grid-tied or off-grid. Some services are available in different areas and others are not.

On-Grid Homes: Power from the local electric company UPCO, with bills depending on usage.
Water Supply: $10/month for Municipal water services (where applicable).
Garbage Services: $10/month. We place our garbage in garbage bins outside the property and the Municipality does garbage pick up.
Recycling: $1/month.
Firefighters: $1.10/month
Cemetary: $2/month

Example: The Mar Y Gold home is 100% off-grid (solar + rainwater), while Coral Cove Estate is on-grid (power + well water).

🛡 How Much Is Homeowners Insurance?

Expect to pay around 0.8% of the insured value per year.
For example, a $300,000 home = ~$2,400/year in insurance.

❓What Are the Best Properties for Investment?

Utila and Roatán are popular tourist destinations, meaning rental income can be strong! Some top picks:

Beachfront homes almost always increase in price.
Properties in town with larger land parcels, or close to the Main Strip (for rental).
Large lots for development or eco-friendly retreats

Want new listings sent straight to you? I can set up an MLS portal for you—just let me know!

📍 Which Areas Are Best for Buying?

We categorize properties into two main groups, and it depends on what you’re looking for:
1️⃣ Road Access Listings – Easy access to town, more amenities, ideal for convenience.
2️⃣ Boat Access Properties – More remote, often beachfront or private, accessible only by boat.

Check out our Utila real estate geography videos to see the differences!

🔑 What’s the Buying Process Like?

1️⃣ Find a property that fits your needs.
2️⃣ Make an offer—most deals are cash, but financing may be available.
3️⃣ Sign a purchase agreement and place a 10% earnest money non-refundable deposit.
4️⃣ Hire an attorney (title search, legal checks, survey, etc.).
5️⃣ Closing—transfer of ownership and final payment.

We handle the process smoothly so you feel confident in your investment.

💬 Got More Questions?

Drop them in the comments or send me a message! I’m happy to help. 🏝✨

Looking for a vacation home, investment property, or permanent residence? Let me know what you’re looking for, and I’ll find the best options for you!

👉 DM me or comment below to get started!

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