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Constitutional Article #107:

State, Municipal or Private Properties situated along neighboring countries or coastlines of both seas in an extension of 40 km towards the interior of the country, including islands, cays, reefs, rocks and sand banks, may only be acquired, possessed or held at any title by Hondurans by birth, corporations formed entirely by Hondurans, and, government institutions, under penalty of nullity of the act or contract.

The acquisition of urban properties located in the limits indicated in the above paragraph shall be subject of a special legislation.

(Congress Decree 90-90)
Property registrars are forbidden to record documents that contravene these dispositions.
Legislation Overview – Permissible
Congress Decree # 90-1990

3,000 m/2 for Residential Purposes in a Foreigner’s Name (approx 0.72 acres)
Improvements (Residency) to be made in 3 years from purchase.
Larger areas for tourism projects with authorization from the Honduran Institute of Tourism

Firm’s Interpretation and Notes:

Two individuals may Not buy more than .72 acres of land jointly.
Improvements /Building condition is not regulated (yet);
For larger areas, even if for tourism projects, we recommend the use of a corporate structure.

Corporate Structures
From Constitutional Article # 107 we’ve learned that any of the following 3 elements are required to acquire land in excess of what allowed by congress Decree # 90-90 (3,000 m/2):

To be a Honduran by Birth;
A Corporation formed entirely by Honduras;
Government Institution.

# ‘s 1&3 are Not options, therefore, we’ll analyze #2….

Honduran Civil Code
Article # 50:
The Corporations, Foundations and Associations recognized by the Law and which are domiciled in Honduras shall have Honduran Citizenship if they have the concept of a juridical person as per the dispositions stated in this code.
Article #56 :
Juridical Persons are :


Associations of particular interest ; civil, mercantile or industrial to which the law their own personality, irrelevant to the one of its associates.

Therefore, any corporation formed in Honduras, regardless of the Nationality of its shareholders, HAS HONDURAN CITIZENSHIP.
ABC Holding Company, S.A
Is a corporation chartered and domiciled in Honduras, therefore, has Honduran Citizenship. Can it own land according to Constitutional Article # 107?
Answer =No !!!
Because it is not formed entirely by Hondurans.
To comply with the element “formed entirely by Hondurans” we must take another step…
“Juan Perez” shall be a Honduran National who will aid in the chartering process of the corporation since a minimum of 2 shareholders are required for the purpose.
His/Her stock certificate shall be transferred by simple, blank endorsement as allowed by commerce Code Articles # 126, 480, 482, 483, 484, 487, 489, 490, 491, & 492.

In your Real Estate experiences you will find transactions:

From Individuals to Individuals;
From Individuals to Corporations;
From Corporations to Individuals;
From Corporations to Corporations;
Purchase of a Corporation with its Assets.

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