Economic Overview
Economic growth accelerated in the third quarter to 2.4% year-on-year (Q2: +1.6% year-on-year) on a get in open expenses, likely connected to the administration’s neighborhood foundation push.
Development in the month to month financial movement file decelerated in October–November comparative with the Q3 normal: A compression in farming action incompletely counterbalance a flood in mining and quarrying yield. Then the product exchange shortage limited year-on-year in October, however this was essentially because of a drop in imports, featuring shortcoming in local interest, as fares additionally fell.
This year, the economy is required to develop at a somewhat more grounded pace contrasted with a year ago’s normal six-year low.
Main sectors of industry
Agriculture
The economy of Honduras is based mostly on agriculture and the leading export coffee ($340 million) accounted for 22% of total Honduran export revenues.
Cultivated shrimp is another important export sector. Since the late 1970s, towns in the north began industrial production through maquiladoras, especially in San Pedro Sula and Puerto Corts.
Natural resources and Energy
Mining, the pillar of the Honduran economy in the late nineteenth century, declined significantly in significance in the twentieth century.
Fuelwood and biomass have customarily met around 67 percent of the nation’s all out vitality request; oil, 29 percent; and power, 4 percent.
Honduras has for a long time depended on fuelwood and biomass (for the most part squander items from rural creation) to supply its vitality needs. The nation has never been a maker of oil and relies upon imported oil to fill quite a bit of its vitality needs.
Manufacturing
Material fares, principally to the United States, drove the Honduran assembling segment. The maquiladora, or gathering industry, was a development industry in the by and large distressing economy.
Construction
Privatization of earlier state-possessed enterprises through obligation swaps likewise adversely influenced development as costs for essential materials, for example, concrete expanded and credit fixed. A significant depreciation of the lempira added to the effectively significant expense of development imports.
Taxes for businesses in Honduras
Corporate income tax rate 25% (30% including the surtax)
- Branch tax rate 25% (30% including the surtax)
Capital gains tax rate Surtax 10% - 5% solidarity contribution on net taxable corporate or branch income exceeding HNL 1 million
- Taxation of dividends – Dividends received by a resident company are subject to a 10% withholding tax.
- Sales tax: The sales tax rate in Honduras is 15% and 18% on tobacco and alcohol sales.
- Customs Duties: There is a 25% (plus or minus) selective tax levied on all goods imported to Honduras.
- Property tax: Property is taxed at approximately $4 for every $1,000 in value according to the deed or catastral value, whichever is greater. The catastral value is determined by the municipal government and can be adjusted every five years
- Various penalties apply for failure to file returns and pay tax, which increase from 3% to 36% for failure to pay tax and from 5% to 25% for failure to file a return.
Investing in Honduras
Investing in Wood Products in Honduras
The Honduran wood items and furniture industry has existed for more than 100 years. This long marriage between the regular hardwoods and the talented work has created a high level of profitability, specialized abilities, and administrative capacities.
Investments in Hand Carving in Honduras
Carpentry is a long-standing custom in Honduras, and the craftsmans there make probably the most excellent carvings on the planet. Woodwork from Honduras is of the highest caliber.
Investing in Electrical Products and Light Industrial Goods in Honduras
The nation has an expanded mechanical base and bolster enterprises that permit the assembling or collecting of new modern and electrical items for send out.
Investing in the Agricultural Industry of Honduras
Honduras’ various and ripe atmosphere is appropriate for the development of an assortment of products of the soil.