Coastal & border property restrictions

The place most expats want to buy — an island or a beach town — is exactly where the Constitution limits what a foreigner can directly own. Understanding the 40-kilometer rule before you sign anything is the difference between a clean purchase and an unenforceable one.

The 40-kilometer rule

Article 107 of the Constitution restricts foreigners from directly owning land within 40 kilometers of the coastline and of the national borders. That band is not a technicality — it covers nearly every destination expats actually want, including Roatán, Utila and Tela. If a property you are considering sits in that zone, a foreigner generally cannot hold direct title to it the way a Honduran citizen can.

The Decree 90-90 exception

Decree 90-90 opens a narrow door. It allows a foreigner to own land inside the restricted zone in some cases, but with hard limits:

• A cap of 3,000 square meters — enough for a home or small lot, not a large parcel.
• One property per person — the exception is not a route to a portfolio.
• The land must be for urban or tourism purposes, not open rural acreage.

If what you want falls outside those limits, the exception will not cover it, and any promise that it does should be checked independently before money changes hands.

Why the "workarounds" carry their own risk

Because the direct route is restricted, sellers and agents often propose structures — most commonly a Honduran company — to hold coastal land on a foreigner's behalf. These are not a magic bypass, and they introduce a distinct set of dangers. Read corporate ownership risks before you assume a company solves the problem, and run any deal through the verify-before-you-buy checklist. The property overview ties these topics together.