Statement on fiscal exonerations/tax erosion

The Próspera ZEDE special economic zone is not a tax-free zone, and it will not in any way deprive the local municipality of revenues or impose an unfair burden on municipal services. In fact, it will generate positive tax and other revenue streams for the municipality and for the Government of Honduras that did not exist before. The location of the Próspera project had no economic activity in the past and generated no significant tax revenue.

Under recent clarifying national legislation, any existing business that moves into the zone is legally required to continue paying the same taxes to the municipality and national government as previously, and every new project will result in new taxes and new revenues. This new law parallels the Próspera Charter’s previously existing provisions. Therefore, municipalities will have more funds than they do today to improve infrastructure and services.

Existing institutions and communities in Roatán will continue to be strengthened by the success of SJB project. 12% of tax revenues collected will be shared with the municipalities of Roatan and various divisions of the national government. 2.4% of all taxes will be paid to the municipalities and 9.6% to the national government, as mandated by law.

Just like any other Honduran, Próspera ZEDE residents and businesses will pay the same fees that maintain the airport, the same vehicle registration fees that pay for public road maintenance, and other fees that support infrastructure. If Próspera ZEDE requires services from the Roatán municipality within Próspera ZEDE, such as police and fire protection, Próspera ZEDE will pay a fair and mutually agreed-upon price for such services by both parties. Therefore, any services that the municipality provides to the Roatán Próspera development will be fully paid for.

Próspera ZEDE looks forward to signing intergovernmental agreements with each of the municipalities on Roatan to establish in writing a solid foundation for positive and transparent relations going forward for the benefit of all Hondurans and islanders.