Hiring in Próspera

Daniel Frazee
March 30, 2022

Hiring in Próspera is one of the simplest jurisdictions to hire anywhere in the world. The requirements to hire are straightforward and getting started is easy.


Setting up an entity within Próspera

All entities can hire but there is a strategic legal decision that needs to be made. The strongest case for regulatory and tax jurisdiction in Próspera is made if you set up a physical Resident legal entity, not an eResident legal entity, because only the former can operate year round inside the Próspera ZEDE.


Once your prerequisites are complete, you'll need to meet the following requirements.

Ensuring your team member is a resident of Próspera

To work in Própsera your team member must have a Próspera residency. There are several residencies they can select based on how long they will work in Próspera and what they would like to do within the jurisdiction (i.e. own land). Based on the residency they choose and the job they have, additional insurance may be required. Residencies can be applied for online at eprospera.hn. For more information about the residencies available, check out the General Service Provider (GSP) catalog.

Note: Próspera residencies are unrelated to residency in Honduras. If your team member doesn’t have Honduran residency they may require one to work in Honduras. Contact an immigration attorney if you have questions.

Classifying your team member and procuring a contract

Choosing the right contract based on the relationship with your team member and ensuring that the contract is compliant is important. There are several ways to do this, two good ones would be working with a local attorney to draft contracts for your business or leverage the templated contracts offered by Palma to get you started. Before finalizing any contracts, you should always consult an attorney.

Setting up the Labor Benefit Fund

All qualifying employees in Próspera are required to be paid a percentage of their earnings into the Próspera Labor Benefit Fund by the company. Company’s must set up this trust account and maintain proper accounting or leverage a provider to handle this for them. Labor Benefit Fund payments are due at the end of each quarter. An article breaking down the Próspera Labor Benefit Fund in more detail will be added to our resources soon. We will update this article once it's available.

Physically working in Próspera

Similar to creating your entity, to claim regulatory and tax jurisdiction in Próspera, your team member must physically work within the Próspera jurisdiction.

Complying with regulations

You can find the full Próspera Labor Statute here. Below we highlight some aspects of the Próspera Labor Statute that are important to keep in mind when hiring team members. As always, it is good practice to consult an attorney before procuring contracts or hiring team members.

Minimum wage

The minimum wage in Próspera is equal to the Honduran minimum wage plus the Próspera Labor Premium. For details on how each of these are calculated, check out this article.


No employer may require any statutory employee to work more than 48 hours nor more than 6 days in any 7 day period without paying overtime which is equal to 125% of the employee's compensation. To ensure your compliance, it's a good idea to track time for all employees that qualify for overtime.

Employees are responsible for paying their own taxes

Residents of Próspera are responsible for reporting and paying their own taxes which simplifies payroll and taxes. In general, the employer is not required to withhold any taxes from a team member's paycheck unless that team member is not a resident of Próspera. Personal income tax is collected at the beginning of each year for the preceding year. Each resident receives an email to their (e)Resident email address to complete their taxes.

90% Honduran employees

Statutory employees are deemed by the Prospera Labor Statute to be “trabajadores” under the law that authorized the formation of Prospera. In general, companies operating within Prospera must ensure that 90% of the statutory employees they hire are Honduran nationals; and also that such statutory employees receive, in the aggregate, 85% of the compensation paid to all statutory employees working for the company. However, it is important to emphasize that this requirement only applies to direct hires of statutory employees. Further, if qualified Honduran nationals cannot be found to fill a statutory employee position, your company may hire non-Hondurans notwithstanding the foregoing requirements; but in such case it is important to document the basis of that decision contemporaneously with your hiring decision.


As always, this article does not substitute a qualified attorney and should not be construed as legal advice. If you're looking for the simplest way to hire employee's in Próspera, Palma is tailored for the specific labor compliance and payroll regulations and includes template contracts for hiring employees and contractors.

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