New Tourism Incentives Law in Honduras
Last August 17th came into force the new tourism incentives law in Honduras with the objective of promoting the investment in the sector and ensuring compliance of the projects currently in portfolio.
Tourism in Honduras
In the last 5 years the tourism sector has claimed a major surge for the Central American countries and their economy. Honduras for its diversity of cultural places, colonial cities, archeology, natural reserves and beaches, has strengthened the sector by means of its promotion through Marca País and other national efforts.
According to The Travel & Tourism Competitiveness Report 2017, made by World Economic Forum, Honduras is in the 90th position of 138 countries worldwide. This shows that tourism has a significant input within its economy.
Tourism Incentives Law
Considering the important growth of the tourism industry in our country and in accordance with the generation of employment proposed in the program Honduras 20/20, the Congress of the Republic through the Decree 68-2017 issued the Tourism Incentives Law, which purpose is to grant tax and customs benefits to investments of established or to be established companies in the tourism sector, in order to create new sources of employment.
The benefits of the new law are aimed to natural or juridical persons that are involved in touristic activities or services. The beneficiaries, according to the law, are:
- Services of touristic industry
- Related infrastructure
- Targeted investment in tourism
- Related touristic activities
- Services of tourist offering
- Tourist services of transport
The Tourism Incentives Law grants the beneficiaries the following benefits:
- Exemption from income tax, net asset tax and the solidarity contribution and related rights for 15 years.
- Exemption from income tax and any other retention of payment for services and linked fees to the construction in all its facets for 5 years.
- Exemption from income tax in local works of good and services linked directly to the construction, renovation or restoration, new infrastructure, complementary investment in touristic activities.
- Benefits in import of machinery and all the necessary equipment for the construction and maintenance of the projects.
- Exemption of custom import duties, selective consumption and tariffs tax and other custom duties for the touristic projects up to 10 years.
Besides the benefits previously mentioned, the law establishes some investment incentives, as well as the creation of a fund of investment, promotion and development tourism.
Miguel Zapata, Managing Director of García & Bodán San Pedro Sula, says that “The new law makes more attractive to invest in the tourism sector, granting profitable benefits to the investors and, if well-implemented, it may accomplish its goal of generating new investments and new job positions”.
García & Bodán Honduras counts with offices in Tegucigalpa and San Pedro Sula, two of the cities that, besides contributing to tourism, count with great investment opportunities.