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Honduras: incentives for investors

Tuesday, September 11, 2012


Domestic and foreign investors will benefit, following the entry into force last July of the Law for the Protection and Promotion of Investments, which declares the promotion of investment as being in the best interests of the state.

The new law guarantees the principle of national treatment to foreign investments, including unrestricted market access, the right to transfer funds outside Honduras, equal access to credit in the financial system, participation of foreign investment in the ownership structure of local companies, and the right to establish subsidiaries, branches and representative offices without restriction.

The law is structured in three parts: investment protection, incentives and promotion.

In relation to protection, the new regime prevents later claims against a property, which had clear title at the time of purchase. Also, an investor and the state can agree in relation to any contract, that arbitration, including arbitration in a foreign jurisdiction, will be the mechanism that resolves any conflict.

In the case of new investments with a minimum capital of $ 2 million, the investor can request including stability contract, which guarantees that new national or municipal taxes will apply.

For more information, please contact Jose Miguel Álvarez at [email protected], or (504) 2221-1002 ext 123