LLC × residence calculator · Edition 2026.09
If you lived in Honduras: how much tax you would pay on your LLC profit
Honduras is territorial under article 1.2 of the Tax Code: only Honduran-source income is taxed. The profit of a transparent LLC earned from services rendered to clients outside Honduras is foreign-source income and is not taxed under personal income tax. If you render the service from Honduras, the income becomes Honduran-source and falls under the progressive scale of article 22.
Isaac Cubero · Checked on 14 September 2026 · territorial
At $100,000 of profit
On $100,000 of LLC profit, living in Honduras, you would pay $0 income tax (territorial regime), with conditions.
territorial
| Income tax on foreign-source income | $0 |
| Estimated total | $0 |
Sources: Tax Code, Legislative Decree 170-2016, art. 1.2 (territorial income principle); SAR consolidated text · Income Tax Law (Decree 25 of 1963), arts. 2, 22 and 25, consolidated text through Acuerdo SAR-07-2025, published by the SAR · SAR, Acuerdo SAR-01-2026, La Gaceta No. 37,051 of 23 January 2026 (2026 ISR progressive table) · Legislative Decree 51-2003 (Tax Equity Law), art. 22, and Legislative Decree 17-2010, art. 1 (Temporary Solidarity Contribution), La Gaceta No. 32,193 of 22 April 2010 · PwC Worldwide Tax Summaries, Honduras (orientation only; confirms the 5% Solidarity Contribution is still in force, last reviewed 10 August 2026) · Fixed exchange rate 27 HNL/USD.
Rank 1 of 38 residences by effective rate at this profit.
- 2026 scale per Acuerdo SAR-01-2026 (4.98% CPI adjustment), published in La Gaceta No. 37,051 on 23 January 2026.
- The service is rendered outside Honduras and the dividend comes from a company with no activity or effective management in Honduras.
- No social security (IHSS/RAP) or personal deductions beyond the exempt bracket of the scale.
- Article 2 of the 1963 Income Tax Law still says the tax applies 'whether the source of the income is located inside or outside the country': in practice the SAR follows the territorial rule of article 1.2 of the 2016 Tax Code, but the old wording leaves an opening if you work from or manage the company from Honduras.
- If you physically work from Honduras or the client is Honduran, the income becomes Honduran-source and falls under the progressive scale (up to 25%).
- The S. de R.L. pays 25% corporate tax and, if its net taxable income exceeds HNL 1,000,000 (about USD 37,300), an additional 5% Solidarity Contribution on the excess (Decree 51-2003, art. 22, rate set by Decree 17-2010, art. 1); it is modelled as a 30% bracket above that million. If gross income exceeds HNL 1 billion, the tax cannot fall below 1% of gross income.
- If the foreign company pays the dividend through a Honduras-domiciled holding, that holding does withhold 10% on distribution.
- Tax Code, Legislative Decree 170-2016, art. 1.2 (territorial income principle); SAR consolidated text
- Income Tax Law (Decree 25 of 1963), arts. 2, 22 and 25, consolidated text through Acuerdo SAR-07-2025, published by the SAR
- SAR, Acuerdo SAR-01-2026, La Gaceta No. 37,051 of 23 January 2026 (2026 ISR progressive table)
- Legislative Decree 51-2003 (Tax Equity Law), art. 22, and Legislative Decree 17-2010, art. 1 (Temporary Solidarity Contribution), La Gaceta No. 32,193 of 22 April 2010
- PwC Worldwide Tax Summaries, Honduras (orientation only; confirms the 5% Solidarity Contribution is still in force, last reviewed 10 August 2026)
- Fixed exchange rate 27 HNL/USD.
At three profit levels
What you would pay in Honduras depending on what your LLC earns.
| Annual profit | Estimated tax | Effective rate | You would keep |
|---|---|---|---|
| $50,000 | $0 | 0% | $50,000 |
| $100,000 | $0 | 0% | $100,000 |
| $250,000 | $0 | 0% | $250,000 |
And if it were not an LLC
The five cheapest structures from Honduras, distributing all the profit.
| Structure | Corporate | Withholding | You, in Honduras | Total |
|---|---|---|---|---|
| US LLC | $0 | $0 | $0 | 0%$0 |
| UAE free zone | $0 | $0 | $0 | 0%$0 |
| Hong Kong Ltd | $8,250 | $0 | $0 | 8.3%$8,250 |
| Bulgarian EOOD | $10,000 | $4,500 | $0 | 14.5%$14,500 |
| Cyprus Ltd | $15,000 | $0 | $0 | 15%$15,000 |
Frequently asked questions
Does a US LLC pay tax if I live in Honduras?
The LLC pays no US federal tax if it has no US activity. Honduras is territorial under article 1.2 of the Tax Code: only Honduran-source income is taxed. The profit of a transparent LLC earned from services rendered to clients outside Honduras is foreign-source income and is not taxed under personal income tax. If you render the service from Honduras, the income becomes Honduran-source and falls under the progressive scale of article 22.
How much would I pay in Honduras on $100,000 of profit?
On $100,000 of LLC profit, living in Honduras, you would pay $0 income tax (territorial regime), with conditions. Article 2 of the 1963 Income Tax Law still says the tax applies 'whether the source of the income is located inside or outside the country': in practice the SAR follows the territorial rule of article 1.2 of the 2016 Tax Code, but the old wording leaves an opening if you work from or manage the company from Honduras.
Is Honduras a territorial country?
Yes: it only taxes local-source income. The profit of an LLC operated from abroad is not taxed, provided the work is rendered outside Honduras.
Next
The figure is the start. The structure is the decision.
To see Honduras against the other 37 residences: the full ladder.