Próspera, a self-governing jurisdiction inside Honduras, is rolling out a new tax format: one fixed payment of USD 5,000. It is meant for income earned through work that leans on digital tech—online services, remote projects, platform-based business, that kind of lane. The rule is simple but strict: you pay USD 5,000 once a year, and that single payment is treated as covering all income taxes in Próspera, even if your income is well above that figure.
Próspera Tax Residency Program Priced at USD 5,000
A Zone for Employment and Economic Development (ZEDE) is the legal designation under which Próspera functions in Honduras. That distinction is significant because it entails a distinct budgetary and legal framework apart from the general national regulations of the country. Próspera (Honduras) is basically saying: the number stays the same—USD 5,000, regardless of what you earn. You pay the annual amount, and it counts as satisfying the income tax obligations set by this jurisdiction.
Note. U.S. citizens cannot take part because the U.S. taxes based on citizenship.
Requirements for participants:
- proof that the applicant has no tax residency in other jurisdictions, plus a commitment not to obtain tax residency elsewhere while in the program;
- registration and ongoing maintenance of a legal entity in the local Register of Legal Entities;
- physical presence in Próspera for at least seven calendar days during the 12 months following registration.
For business owners, the legal-entity requirement is not just a checkbox. It gives you a workable administrative base: contracts can be signed, invoices can be issued, operations can be run without improvisation. For investors, the same requirement can also act as a practical marker of presence—something that ties the person to the place in a legal, document-backed way.
Most of the setup can be handled remotely. The one non-remote piece is the yearly visit, because it requires real, physical presence. If a participant earns more than USD 5,000, the fixed payment is treated as a credit against the total tax due.
What the USD 5,000 Covers
The yearly payment is treated as a personal income tax payment. At the same time, depending on what you do and what you own, other tax obligations may still appear. That can include (but is not limited to):
- Consumption tax, if the relevant conditions are met.
- Property tax, if you hold the kinds of assets that trigger it.
- Regulatory and administrative fees tied to running the legal entity’s activities.
- Reporting obligations, set by the type of business activity and the required accounting and tax standards.
Application Process for Joining Próspera’s One-Time Tax Payment Program (Honduras)
Applicants for Próspera’s one-time tax residency program submit the required documents and go through a digital identity verification step (KYC). After that, they receive access to e-Residency and can use Próspera’s digital management platform. Once the application is approved and the required payments are made, the company is issued an official Próspera tax residency certificate.
There is also a hard rule: the company must be registered in Próspera within 60 days after the application is approved. The point is to block “paper presence” with zero real business behind it. The program is built so participants show actual business activity in the jurisdiction—even if most operations happen outside of it.
Income Allocation and Governance
The tax structure for a company under Próspera’s one-time tax program is set up in line with Honduran law:
- 12% of collected taxes is transferred to the national budget of Honduras;
- 44% goes to the local ZEDE municipality, an autonomous entity created under national law and overseen by the Committee for the Adoption of Best Practices.
The remaining funds are used to finance operations and development inside the company. Overall, Próspera’s new one-time tax program shows how ZEDE governance works in practice: wide autonomy, but with legal and administrative ties that still connect back to the national government.
Comparing Próspera with Global Tax Residency Programs
This program tends to make sense for several very specific profiles:
- Founders and executives working remotely who want clear, predictable legal and administrative obligations, without yearly surprises.
- Investors active across multiple jurisdictions who need solid, well-structured documentation for banking, transactions, and counterparties.
- Families with a mobile lifestyle, used to frequent cross-border moves, who can meet the annual presence requirement without reshaping how they live.
In Italy, Switzerland, Malta, and several Caribbean countries, settings that are similar frequently cost more, require longer stays, or both. Singapore and Hong Kong have territorial tax systems that let foreign-source income stay untaxed, but they want people to get more involved in the local economy and be more present on the ground.
Unlocking a Fixed-Cost Tax Residency with Próspera’s Lump Sum Model
Próspera’s new lump-sum tax program in Honduras offers a stripped-down route to tax residency built around a fixed annual payment of USD 5,000. That simplicity, however, does not erase nuance: actual tax obligations and corporate requirements still depend on the nature of the activity and the assets involved.
Most alternative regimes have far higher entrance points, starting at USD 25,000 and going up to USD 100,000 or more, and frequently entail extensive physical presence, multiple forms of paperwork, and lengthy processing timeframes. For professionals producing money overseas, the Próspera Lump Sum Tax Residency is a viable option because to its clarity, low compliance load, and short stay requirement.