It is legal to purchase and own land in Honduras if you are a foreigner, and there are various ways of doing this. If you are purchasing 3/4 of an acre or less, you are entitled to purchase and own that land in your own name. If you are purchasing a property that is more than 3/4 of an acre, you will need to form a Honduran corporation and purchase the land through the corporation. This is a very simple procedure and is easily handled by a RE/MAX Beach Agent and a local lawyer. The best way to do this is to interview two or three recommended lawyers and find the one that best suits your needs. RE/MAX Beach can assist you by recommending lawyers we have worked with successfully in the past. The lawyer will research all the documents to ensure the real estate has valid title and check that the property is registered at the relevant municipality. Your legal property deed is called an 'Escritura Publica', and you will receive this once the purchase has been approved. Most foreign homeowners on Utila have used the above procedure to purchase their properties (many are above 3/4 of an acre).
If you are visiting Honduras, you may stay for up to 30-days without a visa if you are a member of the US, UK, most European countries and Australia. After that, you may extend your stay for up to six months which is a simple Visa extension procedure which is handled at any of the immigration offices. After which you will need to leave the country for three days before reentering. Becoming a resident is a little more complex, but can be done with the help of a Honduran lawyer. Start by contacting the Honduran Embassy or Consular Office closest to where you live, and ask them for some information on becoming a Honduran resident - remember to ask for a list of incentives offered!