Honduras's Pensionado Residency (Residencia como Pensionado) is a pension-based residency program for foreign retirees who receive a permanent pension from abroad. It is one of the most financially attractive retirement options in Central America, offering income-tax exemption on pension income and duty-free import of household goods and a personal vehicle. The program is administered by the Instituto Nacional de Migración (INM), with benefits processed by the Instituto Hondureño de Turismo (IHT), and is open to applicants of any nationality.
A discretionary exceptional pathway introduced in 2025 (Acuerdo Ministerial No. 374-2025) allows applicants demonstrating at least 50% of the requirement (USD 750/month) to qualify on a case-by-case basis, with no guarantee of approval.
The resident alien ID card (carnet de extranjero residente) is valid for 2 years and renewable, while the underlying residency status continues indefinitely as long as the income requirement and obligations are met. For renewal, residents must present certifications (issued within 30 days of the request) proving the pension is still being received and deposited, and the IHT must certify continued compliance.
The spouse, unmarried children under 18, students up to age 25, and economically dependent incapacitated persons may apply under the same permit. Each dependant raises the monthly income requirement by USD 150 and must provide their own passport copy, criminal record (adults), medical certificate, photograph, and proof of relationship, all apostilled and translated into Spanish. Dependants receive the same status and benefits as the principal applicant.
Pension income under the pensionado permit is exempt from Honduran income tax. Honduras uses a territorial tax system, so only Honduran-source income is taxed and foreign-source income is exempt. An individual becomes a tax resident after staying more than 90 days in a fiscal year. Income from any authorized investment or professional activity inside Honduras remains taxable.
Pensionados may not engage in paid employment in Honduras. They may, however, invest in authorized productive projects (with approval from the Secretary of State) and provide professional services to government entities, autonomous institutions, or universities; income from these excepted activities is taxable.
All applications must be prepared and submitted by a Honduran lawyer registered with the Colegio de Abogados de Honduras. They can be filed through a Honduran consulate abroad, directly via the INM/SGJD if the applicant is already in Honduras, or through the tramitedigital.sgjd.gob.hn portal. Fees include a small stamped-contract fee plus an approximately USD 200 processing fee. Processing typically takes 3-9 months. Upon approval, the holder registers in the National Registry of Foreigners and receives the resident alien ID card. Note that pensionados must reside in Honduras at least four months per year and obtain IHT exit certification before departing the country.