Honduras

In Honduras, cryptocurrencies are recognized as cryptoassets but are not considered legal tender. The Lempira remains the sole legal currency, with the notable exception of the Próspera ZEDE in Roatán, where Bitcoin is officially recognized as legal tender and a unit of account. While crypto is legal for individuals, general tax laws apply as no specific framework for crypto exists. Financial institutions are currently prohibited from engaging with cryptoassets. The Servicio de Administración de Rentas (SAR) is the governing body for tax administration in Honduras. It applies existing general tax legislation to cryptocurrency activities, as there are no specific crypto-related tax laws in place. Individuals are subject to progressive personal income tax rates ranging from 0% to 25% on income and gains derived from cryptocurrencies. Capital gains from crypto are treated as ordinary income. There are no special tax benefits or reduced rates for long-term crypto holdings. Corporate entities engaged in crypto-related activities face a standard corporate tax rate of 25%. A 15% Value Added Tax (VAT) is imposed on crypto-related services and exchanges. Staking rewards are taxed as ordinary income upon receipt. Income generated from mining is considered business income, subject to individual income tax rates (0-25%) or the corporate rate (25%), with potential deductibility for associated costs like hardware and electricity. DeFi activities, including yields and liquidity provision, are treated as income or gains, with each interaction potentially constituting a taxable event. NFT sales are taxed as capital gains or income, and the creation of NFTs is treated as ordinary income. Converting crypto to fiat currency is a taxable event, triggering the realization of gains. Similarly, crypto-to-crypto swaps are considered disposals and are also taxable events.