Skip to main content
PrósperaConnect

Misleading

Honduran law does not apply within Prospera. It is an independent state: Misleading

By Próspera Team1 min read

The laws of the Republic of Honduras have no effect in the territory of the ZEDE, in which Honduras Próspera Inc. operates.

This is an inaccurate oversimplification. The Prospera ZEDE has its own regulatory framework for civil, commercial, tax, and labor matters, but the applicable criminal law is ordinary Honduran law. The Technical Secretary, appointed by the Honduran government, oversees the zone. The Honduran Constitution and international treaties are the upper limit of all ZEDE regulations. That a zone has its own rules is exactly what happens with free trade zones and free ports in dozens of countries. It is not a state within a state: it forms part of the state structure as a type of municipality, as enshrined in law.

The ZEDE —Zone of Employment and Economic Development— is a legal entity created by the Honduran State through Article 329 of the Constitution and the ZEDE Organic Law of 2013. A ZEDE is not a company or a city: it is a special legal regime, that is, a set of its own rules that the Honduran State authorizes to be applied within a specific territory.

Have a story or a question?

Write to us and the Próspera team will get back to you. We read every message.

Go to the contact form