Próspera ZEDE is a special economic jurisdiction of Honduras, and Article 16 of the Constitution of Honduras states that international treaties are part of the internal law of Honduras. That means the international treaties ratified by Honduras — including tax treaties, free trade agreements, and bilateral investment treaties — form part of the legal framework that applies in Próspera ZEDE.
Tax Treaties
The official Próspera ZEDE site publishes the international tax treaties ratified by Honduras, currently including:
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Decreto No. 136-2017 — Convention on Mutual Assistance and Technical Cooperation between the Tax and Customs Administrations of Central America.
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Decreto No. 107-2014 (FATCA) — the intergovernmental agreement implementing the U.S. Foreign Account Tax Compliance Act in Honduras.
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Decreto No. 115-91 (Honduras–USA) — tax information exchange arrangements between Honduras and the United States.
The full treaty texts (PDF) can be downloaded from the official Tax Treaties page.
Honduras has a limited tax treaty network and generally does not have comprehensive double-taxation treaties of the kind common in Europe. Próspera's territorial tax system — where only income derived from within Próspera is taxed — is the primary mechanism that limits double taxation. Consult a qualified tax advisor about how your home country taxes foreign income.
Trade and Investment Treaties
Honduras has ratified free trade agreements (FTAs) and bilateral investment treaties (BITs) with countries across the Americas, Europe, and Asia, all published on the official Trade and Investment Treaties page. Highlights include:
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CAFTA-DR — the Dominican Republic–Central America–United States Free Trade Agreement.
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Free trade agreements with Canada, Mexico, Chile, Colombia, Panama, Peru, Taiwan, the Dominican Republic, and the European Union (EU–Central America Association Agreement).
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Bilateral investment treaties with the United States, United Kingdom, Germany, France, Spain, Switzerland, the Netherlands, South Korea, Kuwait, and Chile, among others.
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The Treaty of Friendship between Honduras and the USA.
These treaties protect foreign investors — including businesses operating in Próspera — through commitments on reciprocal investment protection, and they underpin preferential trade access for goods produced in Honduras.
Why This Matters for Your Business
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Investment protection: BITs give investors from treaty countries international-law protections for their investments in Honduras, including in Próspera ZEDE.
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Trade access: goods and services businesses operating from Próspera can benefit from Honduras's preferential trade access under CAFTA-DR and other FTAs.
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Tax information exchange: FATCA and the Central American mutual-assistance convention mean financial account information may be exchanged with other tax authorities — Próspera is a low-tax jurisdiction, not a secrecy jurisdiction.
Note: This article does not substitute a qualified attorney and should not be construed as legal or tax advice.