Retiring in Honduras: Stay, Taxation of the French Pension and Access to Care

French nationals need a passport valid for at least six months on the date of entry. The C4 agreement limits to 90 days the total length of a continuous stay without a visa in Honduras, Guatemala, Nicaragua and El Salvador; an extension of up to 90 days is possible from the General Directorate of Immigration, and, after exceeding it, a fine is applied with a single 30-day extension for 20 dollars (France Diplomatie).

To settle for the long term, the retiree applies for a residence permit from the National Migration Institute. The statuses for people of independent means and pensioners, the list of documents (pension received from abroad, apostilled and translated documents) and the minimum monthly incomes could not be read on an official page, the institute’s website not being accessible when consulted: these amounts are confirmed with the institute or the Honduran consulate, in writing, before any step. France Diplomatie’s entry and stay sheet does not deal with residence permits. The guide to drawing your pension abroad details the formalities on the French side.

Honduras does not appear on the list of tax treaties published by impots.gouv.fr. A non-resident is taxable in France on French-source income, subject to the tax treaty concluded with their country of residence, and pensions fall within this scope when the fund is based in France. Where no treaty applies, the fund withholds tax at source, the minimum rate is 20% up to an income threshold revised every year and then 30%, and the taxpayer can request the average rate if that arrangement is more favourable to them. These thresholds are updated every year and should be checked on impots.gouv.fr when filing your return.

On the Honduran side, the tax administration was not accessible when this page was written: the treatment of a pension from a foreign source is confirmed with it. Without a treaty, the risk of double taxation of the same pension is not ruled out by any text: it is managed with the French tax authorities and with local advice.

The S1 form, which allows a retiree living in the European Union to be treated at France’s expense, does not apply to Honduras (ameli.fr, the Assurance Maladie website). France Diplomatie specifies that French health insurance schemes are not recognised locally, that foreigners pay their own costs and that access to care may be refused without insurance, even in a life-threatening emergency. The CFE retiree offer has a contribution that depends on age and the plan chosen, with no health questionnaire and no possible exclusion, with immediate cover if you join before departure or within three months of settling, and no waiting period on returning to France. International insurance is the other option.

During a temporary stay in France, a retiree of a basic scheme who can show at least 15 years of insurance and has no activity is reimbursed for their care, by the CNAREFE attached to the CPAM (the local health insurance office) of Seine-et-Marne for the general scheme; the spouse is not covered. A health insurance contribution of 3.2% on the basic pension, 4.2% on the supplementary pension and 7.1% on a self-employed worker’s pension may apply in place of the CSG (the generalised social contribution) if tax residence is outside France (CLEISS). See the guide to retirees’ health insurance abroad, the S1 form user guide and the page on retiree insurance abroad.

The “Economic indicators” block of this page updates inflation and the exchange rate. France Diplomatie indicates that the euro can be exchanged for local currency at most banks and that many Western Union branches allow emergency transfers. A retiree’s budget is built from the actual rent, health cover and travel; the Honduran authorities do not publish a standard budget.

The choice of where to live takes into account France Diplomatie’s safety classification: advised against except for compelling reasons are the departments of Francisco Morazán (centre of Tegucigalpa), Cortés (San Pedro Sula), Atlántida (La Ceiba), the Bajo Aguán, Olancho and the departments of Yoro, Santa Bárbara and Ocotepeque; under heightened vigilance are the Bay Islands, notably Roatán, the department of Valle and Copán. France Diplomatie advises favouring the plane over the bus, not driving at night and avoiding travel on foot, even by day, in Tegucigalpa, San Pedro Sula and La Ceiba. See the page on living in Honduras.

Dengue is present throughout the country with a high risk all year, and malaria mainly affects Olancho and Choluteca. France Diplomatie also recommends protecting yourself from heat and sun, which matters for a retiree. Chagas disease, transmitted by insects, can have cardiac, digestive or nervous complications years later: avoid precarious rural housing. A check-up with your usual doctor before settling is essential, with a check of vaccines and of the underlying treatment, whose availability locally is not guaranteed.

The rainy season (May to June and September to November) causes floods, landslides and road damage, and hurricanes are to be watched between September and November. The page on the healthcare system in Honduras details the risks and vaccines.

The French embassy in Honduras is based in Tegucigalpa (Colonia Altos Lomas del Guijarro Sur, +504 2235 7275), but it has limited means to help French citizens in a crisis: France Diplomatie recommends checking your insurance contracts and having financial resources for hospitalisation or evacuation costs. Consular procedures fall to the consular section of the French embassy in Guatemala, which can be reached outside office hours on +502 5202 2022. Registering with the Ariane service lets you receive alerts.

In daily life, the sheet recommends limiting cash, leaving nothing in vehicles, avoiding working-class districts (Comayagüela, the west of Tegucigalpa, the “El Mercado” market), withdrawing money at a bank or shopping centre and keeping a low profile. Crime rises before Christmas and Easter. The sale and consumption of narcotics, cannabis included, are prohibited and punishable by imprisonment.

French pension funds pay the pension into an account, in France or abroad, and may ask for proof of existence; these steps are prepared before departure. The guide to retiring abroad summarises the steps. In a country without a social security agreement, CLEISS indicates that France does not take into account periods spent under the local scheme to calculate the rate of the French pension; see also quarters worked abroad.

For a return to France, the CFE member keeps their rights for up to three months after returning, then affiliates to the CPAM; see return-to-France insurance. In the event of a lost or stolen passport, an emergency laissez-passer can be issued by the embassy, solely to return to France. Expavy helps you compare the health covers suited to a retiree settled in Honduras.