Honduras · Tax on foreign income

Does Honduras tax foreign income? A guide for Americans

Short answer

Pay for work done in Honduras is taxed, on a 0–25% scale for residents. Whether a resident retiree pays tax on US income isn't settled; pension residents have an exemption.

What you'd pay, by situation

Retiree on US income
$0 on short stays; not settled after that
Under 3 months a year, US income isn't taxed. Once you're resident it isn't settled, though pension residents have an exemption Needs review
Remote worker paid from the US
About $4,100 on half a year of a $60,000 salary; about $11,600 all year
Pay for work done in Honduras is taxed. After more than 3 months a year you pay 0–25%.
Working for a local employer
Residents 0–25%; non-residents 25%
Residents pay 0–25%, with about $8,500 a year tax-free. Non-residents pay 25% of gross pay Not yet verified

Checked against the law The 2026 tax rates.

Not yet verified The residence test and source rules, read in the 1969 tax regulation.

How it works

  • Tax residence: more than 3 months in a calendar year.
  • What's taxed: pay for work done in Honduras, wherever you're paid. Foreign income of residents isn't settled.
  • Capital gains: a flat 10%, resident or not.
  • No US tax treaty or Social Security agreement: Honduran tax paid may be credited on your US return; see a tax adviser.
  • Pending change: a tax reform bill could cut exemptions; it hasn't passed Pending change
Sources (3)

Links

Taxes in Honduras, with worked examples → The full Honduras guide →

Questions people ask

Does Honduras tax US Social Security and pensions?

Under 3 months a year, US income isn't taxed. Once you're resident it isn't settled, though pension residents have an exemption (Needs review)

Remote worker paid from the US in Honduras: what would I pay?

Pay for work done in Honduras is taxed. After more than 3 months a year you pay 0–25%. Ballpark: About $4,100 on half a year of a $60,000 salary; about $11,600 all year.

Working for a local employer in Honduras: what would I pay?

Residents pay 0–25%, with about $8,500 a year tax-free. Non-residents pay 25% of gross pay (Not yet verified) Ballpark: Residents 0–25%; non-residents 25%.

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