Feeling overwhelmed by complex tax codes and endless paperwork? If you’re an entrepreneur or digital nomad searching for a straightforward, low-barrier way to operate a business in Honduras, you’re not alone. Many globally minded professionals are frustrated by the administrative drag and high tax rates in their home countries. Fortunately, Honduras offers a practical, data-backed solution: the Comerciante Individual (Individual Merchant) status. In this article, we’ll break down exactly how this sole proprietorship option works in 2025, what you’ll pay, and how to optimize your setup for maximum efficiency and freedom.
Understanding the Comerciante Individual: Honduras’ Sole Proprietorship Status
Honduras recognizes the Comerciante Individual as its version of a sole proprietorship. This status is open to regular citizens and allows you to:
- Conduct business activities under your own name
- Invoice clients directly
- Pay taxes as an individual, without forming a separate legal entity
Unlike many jurisdictions that require complex company formation, the Comerciante Individual is accessible and actively used in practice. Registration is handled by the Servicio de Administración de Rentas (SAR), the Honduran tax authority.
Key Tax Rates for Sole Proprietors in 2025
One of the most attractive features of the Comerciante Individual is its transparent, progressive tax regime. Here’s how the income tax brackets break down for 2025:
| Annual Income (HNL) | Annual Income (USD, approx.) | Tax Rate |
|---|---|---|
| Up to 198,996.60 | Up to $8,070 | 0% |
| 198,996.61 – 303,994.80 | $8,070 – $12,330 | 15% |
| 303,994.81 – 707,991.60 | $12,330 – $28,730 | 20% |
| Above 707,991.60 | Above $28,730 | 25% |
Exchange rate used: 1 HNL ≈ 0.0406 USD (2025 estimate).
Pro Tip: How to Register as a Comerciante Individual in Honduras
- Obtain a Tax Identification Number (RTN): Register with the SAR to get your RTN. This is your gateway to legal business activity. Official guide here.
- Register Your Business Activity: Declare your intended business activities with SAR. This is a straightforward process for most service providers and freelancers.
- Comply with Invoicing Rules: You must issue official invoices (facturas) for every transaction. These are tracked for tax purposes.
- Understand VAT Obligations: If your business is subject to VAT (ISV), the standard rate is 15%. Not all activities are subject to VAT, so check your specific case.
Case Example: Digital Consultant Relocating to Honduras
Imagine you’re a digital consultant earning HNL 250,000 ($10,150) per year. Under the 2025 tax regime, your first HNL 198,996.60 ($8,070) is tax-free. The next HNL 51,003.40 ($2,080) is taxed at 15%, resulting in a total income tax of just HNL 7,650.51 ($310). Compared to many Western countries, this is a significant reduction in fiscal drag.
Checklist: Optimizing Your Sole Proprietorship Setup
- Register promptly with SAR and keep your RTN up to date
- Track all income and expenses for accurate reporting
- Issue compliant invoices to every client
- Monitor your income to stay within favorable tax brackets
- Consult the official SAR tax guide for annual updates
Summary: Why Honduras’ Comerciante Individual Status Appeals to Global Entrepreneurs
The Comerciante Individual status in Honduras offers a rare blend of simplicity, low tax rates, and minimal bureaucratic interference. For digital nomads and entrepreneurs seeking to optimize their tax position in 2025, this structure is both accessible and practical. By following the steps above and staying informed on annual changes, you can operate with confidence and efficiency.
For further details, consult these official resources: