How to pay a US company legally from Honduras

For diaspora entrepreneurs and business owners in Honduras looking to engage with the reliable US market, understanding the legal pathways for international payments is crucial. This guide demystifies the process of making legitimate USD payments to US companies, ensuring compliance and efficiency.

The short answer

The fastest legal paths for making payments from Honduras to a US company typically involve international wire transfers through commercial banks or specialized platforms like Wise Business and Payoneer. Honduras does not have a comprehensive double taxation treaty with the United States, meaning that US companies receiving payments from Honduras may be subject to various Honduran withholding taxes, depending on the nature of the income. For services, a 25% withholding tax rate generally applies, while dividends and interest typically incur a 10% rate.

Does Honduras have a US tax treaty?

Honduras does not have a comprehensive double taxation treaty (DTT) with the United States. This means that payments made from Honduras to US companies are generally subject to Honduran domestic withholding tax (WHT) laws, rather than reduced rates that might be available under a DTT [1]. While there isn't a DTT, Honduras has signed a Tax Information Exchange Agreement (TIEA) with the United States. This agreement facilitates the exchange of tax-related information between the two countries but does not provide for reduced withholding tax rates on income streams [1].

Practically, this implies that US companies receiving certain types of income from Honduran sources will likely face Honduran withholding taxes at the rates stipulated by Honduran law. For instance, the general WHT rates for non-residents on income derived from Honduran sources are as follows [1]:

• Dividends: 10%
• Interest paid on commercial operations, bonds, securities, or negotiable instruments: 10%
• Royalties (excluding mining operations and natural resources): 25%
• Salaries paid for services and other remuneration for rendering of services within national territory or abroad: 25%

It is crucial for US companies and Honduran payers to understand that these rates apply in the absence of a DTT. Therefore, careful consideration of the nature of the payment and the applicable Honduran tax law is necessary to ensure compliance and avoid potential penalties. It is always advisable to consult with a tax professional specializing in international taxation for specific guidance.

The central bank and FX rules

The Banco Central de Honduras (BCH) is the central bank responsible for maintaining the internal and external value of the national currency, the Honduran Lempira (HNL), and ensuring the proper functioning of the payment system and financial stability [2]. The BCH implements its exchange policy through an Exchange Rate Band Regime, operating via the Foreign Currency Trading Electronic System (SENDI) [3].

While Honduras has recently simplified access to the foreign exchange market, certain regulations and controls remain in place for outward payments. Commercial banks and authorized exchange agents facilitate international transfers, but they operate under the oversight of the BCH. Key aspects include:

• Foreign Exchange Controls: The BCH utilizes an auction system to regulate the allocation of foreign exchange. Commercial banks are required to sell a percentage of repatriated foreign exchange earnings to the Central Bank [3]. Recent amendments have aimed to loosen rules on dollar purchases, allowing for up to three requests per day with a total maximum of USD 100,000 per day [4].
• Documentation Requirements: For international transfers, banks typically require comprehensive documentation to comply with anti-money laundering (AML) and other regulations. This often includes proof of the funding source, supporting documentation for the transaction (e.g., invoices, contracts), and a clear reason for the money transfer [5]. Detailed account information for the beneficiary, including bank code, account number, and account type, is also essential [6].
• Typical Processing Times: International wire transfers from Honduras to the US can typically take 1 to 5 business days [7]. However, factors such as bank holidays, security checks, and the efficiency of intermediary banks can influence the actual processing time. It is advisable to factor in potential delays, especially for time-sensitive payments.

Businesses in Honduras must ensure strict adherence to BCH regulations and provide all necessary documentation to avoid delays or rejection of international payments. Engaging with a local bank that has established relationships with US correspondent banks can streamline the process.

Step-by-step: how to pay a US company

Paying a US company from Honduras involves several key steps to ensure compliance and a smooth transaction. Here’s a practical guide:

1. Open a Business Bank Account: Ensure your business in Honduras has a corporate bank account with a commercial bank that offers international transfer services. This account will be the source of your funds.
2. Gather Beneficiary Information: Obtain all necessary details from the US company you intend to pay. This typically includes the full legal name of the company, their bank name, SWIFT/BIC code, account number, and bank address. For certain payment methods, you might also need their routing number.
3. Understand the Payment Purpose and Documentation: Clearly define the purpose of the payment (e.g., services rendered, goods purchased, software license). Collect all supporting documents such as invoices, contracts, or service agreements. These documents are crucial for compliance with Honduran foreign exchange regulations and for your bank to process the transfer.
4. Choose a Payment Rail: Select the most suitable payment method based on urgency, cost, and the amount being transferred. Options include traditional SWIFT wire transfers, or digital platforms like Wise Business or Payoneer. Consider their fees, exchange rates, and processing times.
5. Initiate the Transfer: Visit your bank in person or use their online banking platform (if available for international transfers) to initiate the payment. Provide all the beneficiary details and submit the supporting documentation. If using a digital platform, follow their specific instructions for initiating an international payment.
6. Comply with FX Regulations: Be aware of any foreign exchange limits or requirements set by the Banco Central de Honduras. Your bank will guide you through the process of obtaining the necessary foreign currency (USD) for the transfer, which may involve participating in the BCH’s foreign exchange auction system or utilizing available foreign currency reserves.
7. Monitor and Confirm: After initiating the transfer, keep track of its status. Request a transaction confirmation or SWIFT copy from your bank. Inform the US company about the payment details and expected arrival time so they can also monitor its receipt.

For a detailed comparison, see our full Payoneer vs Wise comparison.

Best payment rails for this corridor

Choosing the right payment rail is critical for balancing cost, speed, and convenience when sending funds from Honduras to the US. Here’s a comparison of common options:

Payment Rail	Typical Fees	Speed (Honduras to US)	Notes
SWIFT Wire Transfer (Commercial Banks)	Variable, often USD 25-50 per transfer, plus potential intermediary bank fees (USD 10-35) [8]	1-5 business days [7]	Reliable for large sums, but can be slower and more expensive due to multiple intermediary banks. Requires detailed beneficiary bank information.
Wise Business (formerly TransferWise)	Variable, typically a small percentage of the transfer amount (e.g., 0.57% + fixed fee) [9]. May have predicted correspondent fees (USD 7.94-35) [9].	Typically within seconds to 1 business day [9]	Known for transparent, lower fees and competitive exchange rates. Transfers are often faster than traditional wires.
Payoneer	Fees vary; 3% for transfers from Payoneer balance to local bank account, plus potential intermediary bank fees (e.g., USD 20-45) [10].	1-2 business days [10]	Popular for freelancers and businesses receiving payments from US companies. Can be used for outward payments, but fees for bank transfers can be significant.
Western Union Business	Fees vary by amount, destination, and payment method. Often offers $0 fees for first transfers [11].	Minutes to 1 business day [11]	Primarily known for remittances, but also offers business services. Can be a fast option for smaller, urgent payments. Exchange rates may include a markup.
Local Fintech Options (e.g., Felix Pago, Majority)	Fees vary, often competitive with digital platforms.	Typically within 30 minutes to 1 business day [12]	These platforms often focus on remittances but may offer business services. They can provide fast transfers with good coverage of Honduran banks. It's important to verify their specific business payment capabilities and fee structures for US transfers.

Common compliance mistakes

Founders in Honduras making payments to US companies often encounter several compliance pitfalls. Avoiding these can prevent delays, penalties, and legal issues:

• Underestimating Documentation Requirements: Failing to provide complete and accurate supporting documentation (invoices, contracts, proof of service) for the payment. Honduran banks and the BCH require this to verify the legitimacy of outward foreign currency transfers, especially given FX controls.
• Ignoring Withholding Tax Obligations: Overlooking the application of Honduran withholding taxes on various income types (e.g., services, royalties, interest) paid to US non-residents. The absence of a US-Honduras tax treaty means these domestic WHT rates apply, and failure to withhold and remit correctly can lead to penalties.
• Non-Compliance with FX Regulations: Not adhering to the Central Bank of Honduras's foreign exchange regulations, including limits on daily dollar purchases or specific procedures for acquiring foreign currency. This can result in transaction rejections or investigations.
• Using Personal Accounts for Business Transactions: Conducting business payments through personal bank accounts. This blurs the lines between personal and business finances, complicating accounting, tax reporting, and compliance with both Honduran and US regulations.

What Keystone Bridge clients in Honduras do

Keystone Bridge Global assists Honduran entrepreneurs and business owners in navigating the complexities of international payments by helping them establish a US entity. This strategic move allows clients to streamline both incoming and outgoing payments, using the US financial system for greater efficiency and reduced transactional friction. By operating through a US entity, businesses can optimize their payment processes and better manage their financial interactions with US partners.

References

1. PwC. (2026, February 27). Honduras - Corporate - Withholding taxes. PwC Tax Summaries. https://taxsummaries.pwc.com/honduras/corporate/withholding-taxes
2. Banco Central de Honduras. (n.d.). Sites of Interest. https://www.bch.hn/EN
3. Banco Central de Honduras. (n.d.). Exchange Policy Descriptive Framework. https://www.bch.hn/EN/institutional-policies/exchange-policy/exchange-policy-descriptive-framework
4. Dentons. (2026, March 6). Honduras Simplifies Access to the Foreign Exchange Market. https://www.dentons.com/en/insights/articles/2026/march/6/honduras-simplifies-access-to-the-foreign-exchange-market
5. Western Union. (2022, June 2). International wire regulations: What you need to know. https://www.westernunion.com/blog/en/us/international-wire-regulations/
6. DLocal. (n.d.). Honduras. DLocal Docs. https://docs.dlocal.com/docs/honduras-payouts-v3
7. XE. (n.d.). Central Bank of Honduras Exchange Rate. https://www.xe.com/en-nz/compare/central-bank-of-honduras-exchange-rate/
8. JPMorgan. (2025, April 23). Wire Transfers: How They Work, Security & Fees. https://www.jpmorgan.com/insights/treasury/payables-disbursements/wire-transfers-how-they-work-security-and-fees
9. Wise. (n.d.). How much does it cost to send USD to countries outside the US. https://wise.com/help/articles/2946451/how-much-does-it-cost-to-send-usd-to-countries-outside-the-us
10. Reddit. (n.d.). Experiences transferring funds from Payoneer to your bank in Honduras. https://www.reddit.com/r/Honduras/comments/1igwa38/experiencias_pasando_fondos_desde_payoneer_a_su/
11. Western Union. (2026, July 7). Send Money to Honduras - $0 Transfer Fee on Your First Online Transfer. https://www.westernunion.com/us/en/send-money-to-honduras.html
12. Felix Pago. (n.d.). Send Money to Honduras from the US via WhatsApp. https://www.felixpago.com/en/send-money/honduras

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Disclaimer: This guide is for general information only and is not tax, financial, or legal advice. Regulations change — verify current rules with a qualified adviser before acting.

For the broader picture on this topic, see our guide on how to pay a US company from your country.

See also

• Best Payment Processors for Non-Residents — Full Comparison For more context, see LLC vs C-Corp for Honduras founders.