Prospera - The Low-Tax, Low-Regulation, Pro-Freedom Charter City on Roatan Island off Hondura

The Ultimate Guide for Potential Tourists, Ex-Pats, Vacation Homeowners, Digital Nomads, Businesses, and Investors

Etienne Note: This is an expanded chapter from my upcoming book: Voluntaryism - How the Only “ISM” Fair for Everyone Leads to Harmony, Prosperity and Good Karma for All. The book features a section that breaks down the most exciting libertarian and voluntaryist enclaves, where freedom-minded individuals are voting with their feet and moving to jurisdictions with less government and more freedom, private property protections, and extraordinary liberty-minded individuals. In addition to Prospera, I am covering: The Free State Project in New Hampshire, Cheran (The Mexican town that kicked out the Mexican federal “government” and cartels), Liberstad (Southern Norway), Montelibero (Montenegro, Europe), Liberland (Serbia/Croatia border), Los Propietarios, (Argentina), Network States in general and Seasteading among others.

Prospera - The Low-Tax, Low-Regulation, Pro-Freedom Charter City on Roatan Island off Honduras

The Ultimate Guide for Potential Tourists, Ex-Pats, Vacation Homeowners, Digital Nomads, Businesses, and Investors

By Etienne de la Boetie2, Founder, The Art of Liberty Foundation

Prospera is a charter city incorporated into a Zone for Employment and Economic Development (ZEDE) on the island of Roatan off the coast of Honduras. A ZEDE is a program in Honduras, based on a concept developed by Nobel Laureate economist Paul Romer to bring investment to undesirable locations in developing countries, where the country's usual bureaucratic regulations and taxation are replaced by local laws to attract foreign investment. However, the area is still subject to the Honduran criminal code.

The private owners of Prospera are pioneering "governance as a service" and aiming to attract businesses and residents seeking a fiduciary government, low taxes, and a polycentric regulatory environment that allows for a choice among multiple regulatory options. The legal framework authorizing the incorporation of Prospera ensures legal stability through a treaty and an express legal stability agreement. They have attracted over 200 businesses as of April 2025 and secured more than $150 million in investment.

They operate the high-end Pristine Bay Resort on 350 acres in a community called St. John's Bay, the Duna Residences (the tallest residential building on Roatan), an 18-hole Pete Dye-designed golf course, private villas, a Bitcoin center, and a Scuba shop, among other amenities. Bitcoin is legal tender, and multiple Bitcoin ATMs are available around the properties.

Why Prospera?

Businesses that move to Prospera can benefit from:

• A low-cost regulatory environment based on Common Law.

• Recognition of regulations from 30 other countries.

• Easy business registration similar to the U.S. system.

• Low taxes: an effective 5% flat tax on gross income for individuals and an effective 1% flat tax for businesses, an effective 2.5% retail sales tax, and 1% land value tax.

• Strong private property rights.

The project has faced what has been described as an "Incredibly sophisticated, multi-layered, internationally-sourced, astro-turfing, extremist ideological campaign" against the project by leftist political leaders in Honduras and throughout Central America that don't seem to want an example of a low-tax, high-freedom city exposing the failures of Central America's failed socialist policies.

What You Are Going to Learn in this Article:

Understanding the Lay of the Land - Where is Roatan? Where is Prospera in relation to airport, cruise dock, etc.? The three areas that make up Prospera that I have nicknamed: “Naples,” (The Pristine Bay Resort, villas, the Bitcoin Center, the golf club, etc.) “Silicon Valley,” (The Beta District, Duna Residences, Co-working, Start Ups), and “Shenzhen” (The Port of Satuye & Nearshoring Hub on the mainland of Honduras with access to rail and port facilities for factory builds and relocations)

Tourists & Liberty Tourists - Why do 1.2M tourists visit Roatan each year? Snorkeling & Scuba Diving the 2nd most extensive reef system in the world… right offshore!

Ex-Pats & Vacation Home Buyers - What do houses cost? What does citizenship cost? What is the social scene? Resources.

Business Owners - Why relocate your business to Prospera? What is involved? Tax Rates, regulations, and requirements. Who is Infinita City? Resources.

Investors - Who is behind Prospera? How does Prospera make money? What are the investment opportunities? What is the potential downside?

Understanding the Lay of the Land

Where is Prospera?

Prospera is on the island of Roatan off the coast of Honduras in Central America. It spans over 1,000 acres, with the majority located on the island of Roatan, and includes a parcel of land on the mainland of Honduras for factories and businesses that do not want to pay island prices, as well as access to port and rail facilities.

The Island of Roatan is located about 40 miles (65 km) off the northern coast of Honduras. Roatan is a coral island, the largest and most populous of the Bay Islands, a chain of Caribbean islands that runs along the edge of the Mesoamerican Barrier Reef System, the second-largest reef system in the world. The reef is, in some places, less than 50 yards offshore, allowing for easy snorkeling and scuba diving.

The island of Roatan is a long, narrow island approximately 59 kilometers (37 miles) long and 8 kilometers (<5 miles) wide at its widest point. It is about the same size as Manhattan or Hong Kong. Its population is around 110,000, with the largest town being Coxen Hole. Prospera sits on the northern edge of the island.

Think of Prospera as being divided into three distinct areas, which I have nicknamed:

“Naples” - The Pristine Bay Resort - The crown jewel in Prospera’s crown is a world-class resort + gated residential community featuring an 18-hole Pete Dye-designed golf course, a beach club featuring the Deep Thinkers Scuba Shop, boat rentals/charters, and an inflatable aqua park floating right off-shore.

Scuba.Shop - Home of the Deep Thinker!

Strong swimmers can swim out to the reef from both Pristine Bay and the Beta district, and there is a shipwreck on the reef that I swam out to and snorkeled on during our visit.

Pete’s Place is the 19th hole clubhouse and bar with a double-decker driving range where the target tees are mini-islands in the bay. The clubhouse has billiards, foosball, and a pro shop as well.

“Silicon Valley”—The Beta District and the Duna Residences are situated on a 58-acre tract down the beach and road from Pristine Bay. The Duna tower is the first residential tower in what is projected to be a five-building complex. At 14 stories, it is the tallest residential building on the island, with three levels of parking, lab facilities, a gym with sauna, an infinity pool on the 8th floor overlooking the beach, cold plunge, a co-working space, a coffee shop, a clinic, and retail (Available!). The co-working facility taking up half a floor features bean bag chairs, a quiet zone, available food, drink (and beer), and serves as the nexus for many of the crypto, bio-tech, and other knowledge work companies being incubated by Infinita.vc and/or in Prospera.

The Beta Building, located across the road from the Duna Residences, serves as the company's and Zede's operational center. It houses a restaurant and pizzeria that serve the Duna tower and overlooks the beach. The Duna Residences have already installed a drone port for future flying pizza delivery, BUT for now, you have to walk or drive. Follow that path above down to the beach and the town of Crawfish Rock, which has a convenience store and Sabeya’s Place, a local restaurant on the beach.

The Circular Factory is a robotic micro-factory designed by Max Medina that promotes sustainable timber practices and produces materials and components for both the project and companies located in Prospera. The patio is a frequent hub for parties and get-togethers.

The Circular Factory from the inside. - The factory produces building materials for Prospera and companies located within Prospera.

Artist Depiction of the Port of Satuye & Nearshoring Hub Master Plan

“Shenzhen” - The Port of Satuye & Nearshoring Hub is located on the Honduran mainland and is designed for businesses seeking to relocate their manufacturing and logistics operations. No need to pay island prices with access to a broader diversity of workers, port facilities, and rail service. This aspect of the development has slowed as 1. The Honduran government refuses to allow Prospera to manage its customs, which is stipulated in the Zede agreement, but is being ignored. 2. The political instability with the socialist government has left many potential investors and co-locating companies on the sidelines waiting out the political instability. See below in the section for investors for a detailed breakdown of the political instability issue.

The master plan for the Port of Satuye - Still a work in progress!

Infinitia City - The Network State that Materialized IRL in Prospera

If there is one organization in Prospera that is leveraging the opportunity the most, it appears to be Infinita City. Infinita City is both a “Network State,” which is a term that was coined by Balaji Srinivasan, Coinbase CTO and former general partner at the venture capital firm Andreessen Horowitz, in his book: The Network State. It is a highly aligned online community with a capacity for collective action that crowdfunds territory around the world and eventually gains diplomatic recognition from pre-existing states.

Niklas Anzinger - “The Firstest with the Mostest!”

The online community of Infinita City is centered around longevity, bio-technology, and transhuman digital enhancement, and the community has come together In Real Life (IRL,) driven by its venture capital fund, Infinita VC, led by Niklas Anzinger. Niklas Anzinger appears to be, to quote Confederate General Nathan Bedord Forest: “The Firstest with the Mostest” who saw the opportunity that Prospera offered and jumped in with both feet… Infinita VC is running a full-fledged “Start-Up University,” where their equivalent of “CEOs in Residence” are guiding pre-seed and seed/early stage bio-tech and crypto companies through the basics of term sheets, market surveys, and raising capital. Meanwhile, Infinita and other investors observe the start-ups to identify those with potential for the big leagues.

The superior regulatory environment of Prospera is ideal for its biotech and crypto-heavy portfolio companies to incubate, and the easy travel and low cost of Roatan are perfect for medical tourists seeking longevity treatments at the Infinita clinic. They have wrapped up the ability to participate in the Infinita program with housing in Prospera.

What to Know as a Tourist, Part-time Resident, or Digital Nomad

Want to “Double Dip” and support liberty with your tourism dollars AND visit a supercool location? Boom! Prospera! The weather is perfect, travel is easy, and the locals speak English. As previously mentioned, Roatan is situated on the Mesoamerican Reef, the second-largest reef system in the world. While you can swim out to the reef from Pristine Bay and Duna, there are a variety of other places to sample the reef.

One of our favorites was West Bay Beach, which is the hub of hotels and beach restaurants on Roatan. The reef is located 50 yards offshore, and scuba boats and dive operators depart from the beach regularly. Buy a “Fish Food Bomb” from one of the beach vendors! It is a grenade-sized packet of fish food in an air-tight bag. Swim out to the reef and open it slowly when you see the big fish… You will be SURROUNDED by a feeding frenzy! Keep your hand moving while emptying the bag or you will get nibbled!

Best Times to Visit

The best time to visit Roatan is during the high season, from December to April, as this period offers the driest and sunniest weather, making it ideal for beach activities and exploring the island's attractions. While the summer months (May-August) also offer pleasant weather and fewer crowds, they can experience occasional summer squalls. The low season (September-November) brings the most rain and potential for "northerns" (sudden weather changes), but also the lowest prices for accommodations and flights.

Where to Stay

High End - Las Verandas Hotel and Villas - Las Verandas is the hotel and villas in the Pristine Bay resort. The rooms start at $289 per night, Double Room is $319, Suites start at $379, and Villas at $589. A two-bedroom villa with a pool is $649 and five bedrooms with a pool is $1149.

Mid-Grade & Budget - Duna Residences - It’s a no-brainer if you are attending an Infinita City event, pitching them, or working for one of their portfolio companies. When they host a month-long event, they operate a shuttle service between Duna and Pristine Bay every hour on the hour. Studio - $75 per night / $750 per month, One Bedroom - $100 per night / $1200 per month, Two Bedroom, $175 per night, $1400 Per Month

Part of the brilliance of Prospera was negotiating a ZEDE agreement on an island that has become one of Central America’s top tourist destinations. With 1.2 million visitors a year, there are non-stop flights and easy connections from multiple US, Canadian, and Central American countries into Coxen Hole airport on the island. It gets better.. Almost everyone speaks English!

You Meet the Coolest People… Just Kicking Round the Place…

The author (Etienne de la Boetie2, left) with part-time resident Mason L. (emergency room physician, solar powered catamaran designer, and founder of Atlas Island, center) and my buddy Colin Pape (right), the founder of Presearch.io and ShopCity.com, who was completely coincidentally kicking around as a tourist while we were visiting in March. Mason bought a condo in Duna overlooking the pool where he parks his scuba gear and visits regularly.

Cool Things To-Do

You can find TripAdvisor's list HERE and our favorites below.

Visit a Private Island - There are a variety of private islands that surround the island of Roatan.

Little French Cay - Our favorite weekend excursion when we visited. Part beach club and part wildlife menagerie with Lions, Jaguars, and a variety of other exotic wildlife in cages with Peacocks and tropical birds roaming the grounds. TripAdvisor has it ranked as the #1 destination on the island.

Lime Cay - Like having your own private island, with an excuse to explore the east side of Roatan. Take a boat out to the island. When we went, there were fewer than two dozen others on the island. What to expect: Buffet lunch, private bar, water toys, snorkeling gear, paddle boards, beach chairs, wifi, and an attentive staff.

Roatan Freediving School and Training Center - Learn to Free Dive in Roatan

Restaurants:

Las Pergolas - The fine dining restaurant at Pristine Bay/Las Verandas.

Gio’s Restaurant - French Harbor - Amazing seafood & Italian on the water

Kristi’s Overlook - Tex Mex on the Island! Texas themed bar & grill.

Roatan Yacht Club - Cool little restaurant with pool-side seating and life-size pirate statues for atmosphere.

Events

Music Festival for the Angels - March - Local fundraiser for island charities that celebrated their 20th anniversary in 2025. Our favorite event of the trip. Great music, food vendors, and local crafts!

Garifuna Festival - April

11th Annual Caribbean Cup Freediving Competition - May 27th-31st 2025

Infinita City Crypto Cities Conference - June 2025

CMAS World Cup - Freediving Championship - June 1st-9th

Infinita City Longevity Biotech Month - August 2025

Roatan Fishing International Tournament - August 2025

Infintia City - Human Enhancement Month - October 2025

What to Know as a Potential Expat or Vacation Home Buyer

There appear to be a lot of expats and young retirees kicking around the place! The golf club was hopping, and we stumbled upon a party of locals celebrating the sunset and weekend on a private dock and we ended up getting invited to a music festival the next day.

The cost of being a resident is a residency fee of $130 a year recurring for everyone over 18 years of age in the family and a general liability insurance policy that currently costs $260 per year but could come down in the future. The official tax policy is:

a) 10% of Presumed Taxable Income (Presumed Taxable Income is 10% of Gross Income for legal entities and 50% of Gross Income for natural persons which works out to 5%; Gross Income is Gross Revenues less authorized exclusions, exemptions, and credits).

b) 5% of Retail Value Add (Retail Value Add is 50% of the end user price in a sales transaction that substantially takes place in Próspera ZEDE which works out to 2.5%).

c) 1% of Land Value, if the Land Value Tax is resumed.

Taxes and fees can be paid in Honduran Lempira, US Dollars, Bitcoin, Ethereum, Dai, USDC, or USDT

Where Would You Live?

There are currently a handful of condos/apartments available in the Duna Residences where the costs range from $119,000 for a Studio, to $165,000 for a one-bedroom apartment to $239,000 for a two-bedroom. You can purchase using Bitcoin, Ethereum, Dai, USDC, or USDT.

There are also a handful of properties located in the gated residential community of Las Verandas where the listed properties range from $850,000-$950,000. There is at least one opportunity for fractional ownership with the potential for rental income listed in their overview of available properties. I know from walking the community grounds that there are a few other properties, likely owned by residents vs. Prospera, that are for sale as well with at least one partially completed opportunity that caught our interest. The residents have their own private beach away from the tourists at the Pristine Bay resort.

A 3520 sq. ft. Two-Bedroom Villa is listed for $950,000

Building Your Own – There is property available to build your own estate in the district, and, theoretically, adjacent land can be incorporated into the ZEDE, but the current socialist government is not abiding by the terms of the agreement (see below).

Future Opportunities

Nomad, a company specializing in decentralized living, is creating a network of 10,000+ “nodes” or homes that can be privately owned but connected in a network allowing the owners use of other homes in the network. The company is building one of the first co-living villages for digital nomads in the Beta District in Prospera which they describe as “A community mansion with co-living, co-working and transportation amenities.” They have broken ground and the project is under construction.

Darien Village will be a walkable, European-style neighborhood where everything is close — bakeries, cafes, small shops, and fresh markets right downstairs. There will be a BBQ area, a pool, and shared spaces to connect with neighbors. A bridge will link Darien to the Duna Tower and their coworking space, coffee shop, and mini-grocery store. The ownership group is currently fundraising. See below.

What Is Required to Become a Citizen – Introducing the “Agreement of Coexistence”

Radio talk show host Ernest Hancock has a famous maxim for evaluating libertarian intentional communities: “What can I do? What can’t I do? And what is the dispute resolution? In Prospera all of that is spelled out in the “Agreement of Coexistence”

To access and do business within Próspera ZEDE, natural persons and legal entities need to enter into an Agreement of Coexistence with Próspera ZEDE (the annual fee is $130 for legal entities, physical residents, and e-residents). Prospera requires a background check, passport, proof of formation, Interpol, OFAC, AML and KYC background check. The Agreement itself guarantees certain service levels, requires the use of the default Arbitration Service Provider to resolve all legal disputes arising within Próspera ZEDE or in connection with rights and privileges of being a resident of Próspera ZEDE; and in the case of physical residency, the Agreement grants a legal stability agreement to “grandfather” residents into current laws, protecting them from adverse changes in the legal environment AND a specific guarantee NOT to raise taxes or change the rules in a way that would impact your property values. A side letter to the Agreement of Coexistence requires Residents who engage in the intentional torts of battery, assault, trespass, fraud, or contractual interference to pay civil penalties up to 10 times the sum of consequential damages and litigation expenses from the resultant injury.

The contract:

• Creates your residency status and access permit to Próspera.

• Contracts you to follow the Rules of Próspera, including tax and regulatory rules.

• Ensures you will resolve all disputes by default arbitration in the Próspera Arbitration Center (PAC) or AAA if you don’t have a separate arbitration agreement that determines how disputes are resolved.

Honduran residency is required for folks who are planning on staying long term. You can stay as a tourist for 90 days. After that it requires an extension which has to be filed before the 90 days are up. The extension will extend to 120 days. After reaching the maximum stay limit, you typically need to leave Honduras (and all CA-4 countries) for at least 72 hours before being eligible to return.

For longer stays, you would need to apply for temporary or permanent residency, which has different requirements based on your purpose (retirement, investment, marriage to a Honduran citizen, etc.) I have listed some Honduran attorneys below who can help.

Resources

The Prospera Zede e-Resident Agreement of Coexistence in PDF

The Prospera Zede Agreement of Coexistence for Residents and Entities in PDF

Legal - Cesar Gonzales - Roatan Lawyers - Honduran attorney for real estate, immigration, or investment issues. Super cool guy! “The (unofficial!) Mayor of Roatan”

Ricardo Gonzales - Honduran Attorney & Prospera Deputy Chief Legal Arbiter

What to Know as a Prospective Business Owner Looking to Relocate to Prospera?

We already mentioned some of the basics: Easy-to-get to with non-stop flights and easy connections from many US cities and airline hubs, a population that speaks English, relatively low-cost labor with a solid work ethic, and fantastic weather. Ideally situated between North and South America with port facilities and rail.

#1 - According to venture capitalist Tim Draper, it is the best place to do business on the planet! “The Next Dubai”

#2 - One of the best tax rates on the planet

“Tax returns are a one-page thing and took me less than 5 minutes. This is how it should be done in every country.” - Dusan Matuska, Founder of AmityAge

3. Easy Business Entity Incorporation and Easy Filing

Setting up a business in Prospera is incredibly easy. The cost begins at $379 which includes a $130 yearly eGov License fee, $99 yearly register agency fee, and a one-time $150 fee to incorporate a business. Regulated businesses are businesses in traditionally regulated industries: Agriculture, Construction, Food Industry, Finance and Insurance, Health, Energy, Manufacturing, Mining/Subsurface, Waste Management and Private Security. There are higher compliance costs for regulated industries, and they require a higher level of insurance to operate. The insurance functions similarly to building codes, health inspections, and other forms of regulation, allegedly designed to protect consumers in the US.

Examples: There are no requirements to obtain building permits to begin building in Prospera, BUT builders must have insurance with the insurance provider reviewing the specifics of the project, much like a government safety inspector would, so the market is regulating the activity of builders without the heavy hand of government. The same goes for opening a restaurant or conducting a clinical trial.

Entities can include: Limited Liability Corporations (LLCs), For-Profit Corporations, Non-Profit Corporations, or Registered Foreign Entities.

4. Tax Rates and Legal Stability Guaranteed

In the “Agreement of Coexistence” (links below in resources), Prospera agrees in writing to never raise the tax rate or make any changes to the rules and regulations of Prospera that would negatively impact property or business valuations.

Dispute Resolution

Dispute resolution in Prospera is a combination of Common Law + Best Practices + Arbitration. Prospera has its own independent arbitration company, the Prospera Arbitration Center, featuring world class arbitrators including a former State Supreme Court Justice and Vice Chief Judge of the Arizona Court of Appeals as examples BUT businesses are free to specify and use other accredited arbitration providers such as the American Arbitration Association as one example that is accepted in Prospera.

Biotech and Pharmaceutical – Understanding the Prospera Competitive Advantage

The biggest advantage that Prospera offers is the ability to supercharge biotech and pharma startups with a better regulatory framework than other competing jurisdictions. Minicircle, a biotechnology company that is currently running Phase I clinical trials for gene therapies in Próspera, was able to launch clinical trials in less than eight months at what they estimate is 1/1000 of the cost of the United States. The company claims to have met or exceeded all FDA and international standards for quality and safety and that they can run six Phase 1 trials in Prospera for the cost of running one in the United States.

There is an Institutional Review Board (IRB) process in Prospera, but the default is the ability to try. There is the ability to bring patients and the ability to prove the safety and efficacy of a particular treatment that can ultimately transfer to other markets. The value of a post-clinical trial company is exponentially higher than that of a pre-clinical trial company so expect more startups to be incubated in Prospera!

Regulatory Reciprocity: Companies can choose to operate under the existing regulatory framework for the business in Honduras, the United States, or 19 other top OECD countries. This option can be useful for companies that are already accustomed to specific rules, allowing them to operate in Próspera using the same guidelines as they exist in Honduras, the United States, or other countries.

Default Regulatory Framework: (Common Law) Instead of choosing a specific regulatory framework, companies in regulated industries can choose to operate under Próspera’s common law legal code, subject to prohibitory and mandatory injunctive relief for any violations.

Custom Regulatory Option: Companies have the option of proposing a unique regulatory framework to Próspera’s governing council, which will then consider the proposed regulatory environment for adoption. If adopted by the council, this new regulatory framework will be among the menu of regulatory options for any other firms operating within the same industry as well.

What is the Labor Rate in Honduras?

 Minimum Wage: Ranges from 9,053.43 HNL/month ($360 USD) in agriculture (small firms) to 18,036.18 HNL/month ($720 USD) in finance (large firms), with a reported 2025 high of 17,238.13 HNL (~$690 USD) for some sectors. Includes mandatory 13th/14th-month bonuses.

 Skilled Employees: Average 16,500–30,000 HNL/month ($660–$1,200 USD) in urban areas, with top professionals earning up to 126,000 HNL/month ($5,040 USD) in high-demand fields like IT or finance.

All employers need to comply with the Próspera Labor Statute, which requires (a) “covered employees” (also known as "statutory employees") to be paid either at least 10% or 25% more than the Honduran national minimum wage as well as 125% overtime pay for work in excess of 48 hours or 6 days per week, (b) employers to establish a Próspera Labor Benefit fund into which the employer must make a contribution equal to 10% of the gross compensation paid for employee work (if employee waives customary Honduran labor benefits and wage is 25%+ more than minimum wage) or 25% of the gross compensation paid for employee work (if wage is only 10% more than minimum wage), which the employee can then use for healthcare, education, legal, emergency housing and retirement (employees who refuse to waive customary Honduran labor benefits and receive 25% labor benefit contributions may also use the fund for vacations and holidays in conformity with expectations regarding customary Honduran labor benefits), and (c) employers to recognize the right of employees to unionize while also requiring unions to conduct themselves peaceably and with respect for property rights. Exempted employees include immediate family members of the employer, natural persons in substantial ownership of the firm, interns, entry level hires (that is, people with no previous work experience in the industry), and small business hires.

Resources

Prospera - Lonis Hamaili - VP of Growth

Legal - Cesar Gonzales - Roatan Lawyers - Honduran attorney for real estate, immigration, or investment issues. Super cool guy! “The (unofficial!) Mayor of Roatan”

Ricardo Gonzales - Honduran Attorney & Prospera Deputy Chief Legal Arbiter

Case Studies – Minicircle – Gene Therapy Biotech Start Up

Two Minute Video on Setting Up Your Business Entity in Prospera

The Prospera Zede e-Resident Agreement of Coexistence in PDF

The Prospera Zede Agreement of Coexistence for Residents and Entities in PDF

Rules for Regulated Industries

What to Know as a Potential Investor?

Who Is Behind Prospera?

Prospera was founded by venture capitalist Erick Brimen and Gabriel Delgado. The General Counsel and co-author of the Prospera constitution is Nick Dranias, a constitutional law expert. Joel Bomgar is the President, Daniel Frazee is Head of Product, Lonis Hamaili is VP of Growth, and Javier Aguilar is Head of Hospitality.

There are two different entities that investors can invest in:

St. John’s Bay Development Company LLC - Holds the Real Estate ownership.

Honduras Próspera Inc. - Receives the “taxes” (fees) generated.

What is the Business Model?

Probably one of the most fascinating businesses in the world. Prospera is leveraging its negotiated sovereignty with Honduras to create a start-up city without the hassles, taxation (theft), and red tape of existing “governments.” If they do a good job, then people and businesses migrate to Prospera. They make money in a variety of ways:

Land Appreciation & Rents

The Growth in “Free Market Cities” Has Been Spectacular!

They have bought up 1000+ acres of land on the island and mainland. If they are successful, the value of that land will grow dramatically, just as happened in Hong Kong and Dubai as examples of, essentially, prototype “free private cities,” albeit with more traditional “governments.” They, theoretically, can continue to incorporate new land into the ZEDE as needed so Prospera could BOOM! into a new Hong Kong or Dubai.

Duna Towers - The company has already sold approximately half of the condos in the Duna Tower and is reserving the majority of the remaining units for short-term rentals to accommodate conferences and events being held in Prospera. It is, essentially, completely booked up through internal reservations. They are not listing any of the properties on Airbnb or other booking apps, which demonstrates the strong organic demand.

Pristine Bay Resort / Las Verandas Hotel & Villas - These properties seem ideally positioned to capitalize on not just the growth being generated by economic activity and interest in Prospera, but the “discovery” of Roatan as an epic tourist destination in its own right. There is a bit of a virtuous cycle at play as more growth in Roatan equals more direct flights (and cruises) from more destinations, which translates into more tourists and then more direct flights/cruises. Pristine Bay and Las Verandas will continue to capture some of that growth and more global business owners will discover Prospera.

Conferences & Events - The company is perfectly positioned to host meetings and events with convenient travel to the island and the capacity that Pristine Bay/Las Verandas, Duna, and the upcoming Darien Village and Nomad developments (see above and below). When we were visiting the place was hopping! Max Border’s Crypto Cities Summit and Infinita City’s Human Enhancement Summit had just concluded. We got to watch Venture Capitalist Tim Draper, who is an investor in Prospera, film an episode of Meet The Drapers where founders and key employees from over a dozen Infinita.VC portfolio companies were refining their pitches and attending classes led by “CEOs in Residence.” We attended a music festival held elsewhere on the island as well. Infinita is hosting month-long events in June, August and October and Duna has been open for less than six months.

“Taxes” (Fees for Service)

Prospera earns “taxes,” which, due to the voluntary nature of companies locating there, are better thought of as “fees for service,” with the service being the provision of a better climate for people and businesses than can be found under the immoral and extortion-based competitive “governments.”

The tax rates are described above, and revenue also includes the $130 per person and entity yearly eGov License Fee, as well as any profits derived from the general liability policies required by entities and individuals. 12% of this revenue is allocated to the government of Honduras under the existing ZEDE agreement, and 44% is allocated to the ZEDE for administrative costs, including the operation of the police department, technical secretariat, and other associated governance expenses. 44% goes to Honduras Prospera Inc.

Growth has been parabolic, even with political instability, and the Duna Residences, which provide much of the capacity for events, have only been completed in the last six months and are already at maximum capacity. Pristine Bay and Las Verandas are close to maximum capacity as well, especially during events. The project is, essentially, filling up and expanding with more housing coming on-line through the Darien Village project (see below) where much of that capacity is already spoken for as well as the Darien Village project has a letter of intent from Infinita City to take 20 of the 53 units right out of the gate.

Growth Opportunities

Prospera Honduras is the first in what the company hopes will be many different charter cities in various parts of the world.

Prospera Africa - Co-founded by Magatte Wade, author of The Heart of a Cheetah and Africa’s premier proponent of free markets and libertarian ideas, the project is searching for the right host nation that wants to see prosperity for its people.

Prospera in the United States? - In 2023, Donald Trump floated the idea of 10 “Freedom Cities” in the United States, which would, essentially, be charter cities outside of the usual regulatory framework of the US and the State in which the city is located. They would likely be located in depressed areas in need of revitalization, providing an opportunity to “start over” and allow the free market to thrive outside of the stranglehold of federal and State regulations that stifle business development in the US.

There are three potential options for creating “freedom cities.” One is through what is known as an “interstate compact.” An interstate compact is an agreement between two or more states of the United States that is approved by those states’ respective legislatures, and, if required based on the specifics of the compact, ratified by the US Congress. Compacts that receive congressional approval become federal law. Under the Interstate Compact strategy, two or more states could establish zones with shared and limited tax and regulatory policies, potentially with some state-specific carve-outs related to laws they wish to retain. Under existing law, these compacts can’t be revoked, though they can be dissolved under certain circumstances.

The two other options are creating federal enclaves with special economic and jurisdictional zones, OR Trump issuing executive orders to create specific freedom cities on federal land.

In each of these potential future scenarios and/or in other countries seeking to establish their own equivalent of the ZEDE, Prospera stands ready to capitalize on being “The Firstest with the Mostest” by providing a regulatory framework and tech stack that enables “governance as a service” within any deregulated zone.

Investment Opportunities within Prospera, Honduras

In addition to investing in Prospera directly, there are opportunities to invest in projects being built within Prospera. One of the most interesting is Darien Village, which will be the next major housing complex that will be set up adjacent to the Duna Tower. Phase 1 will feature 53 units across five buildings, catering to both short-term housing needs (such as tourism, digital nomads, conference attendees, and Infinita City visitors) AND long-term housing for Prospera employees and employees from Infinita VC portfolio companies, and other companies located in Prospera.

Darien Village - Darien Village will be a walkable, European-style neighborhood where everything is close — bakeries, cafes, small shops, and fresh markets right downstairs. There’s a BBQ area, a pool, and shared spaces to connect with neighbors. A bridge will link Darien to the Duna Tower and their coworking space, coffee shop, and mini-grocery store.

The Darien Village payback is seven years of dividends, plus the appreciation of the property achieved through the economic growth and demand of businesses that continue to locate in Prospera.

The Potential Downside

The biggest challenge to Prospera’s success has been the socialist government of Honduras. When the ZEDE law was enacted, it was done under a pro-business government led by Porfirio Lobo Sosa. The first draft of the law was introduced in 2011, but the necessary legislation was not passed until 2013. The ensuing Juan Orlando Hernández administration continued the project, and Prospera received approval in 2017. The company broke ground in 2020.

In January of 2022, the leftist politician Xiomara Castro was elected President and began measures to repeal the ZEDE law and began a campaign of agitation against Prospera that has included debanking the company and companies associated with Prospera, revoking the ability of the ZEDE to administrate its customs, and standing idle while a local government has padlocked and attempted to extort taxes on a building leased by Prospera and located within the ZEDE.

In 2024, the Xiomara government attempted to have the ZEDE law revoked by the Supreme Court, which issued a ruling that has been described as unintelligible and unenforceable, in an 8-7 vote. The unenforceability stems from a treaty with Kuwait, which guarantees legal stability for the ZEDE through 2064 under CAFTA. Prospera continues to operate, benefiting from a 50-year legal stability guarantee.

Prospera General Counsel Nick Dranias Breaks Down the Political Situation with Honduras

A source close to the situation has estimated that the political instability caused by the Castro government has kept almost a billion dollars of investment in Prospera (and thousands of good paying jobs) on the sidelines. On November 30th, 2025 the country of Honduras will hold general elections that will include the Presidency. Currently the left-leaning LIBRE party of Xiomara Castro’s political successor, Rixi Moncada, is in second or third place in two major polls:

A January 2025 Paradigma poll gave the Liberal Party (Salvador Nasralla) 28.9%, the National Party (Nasry Asfura) 26.3%, and LIBRE (Moncada) 11.3%, with 33.5% undecided. A September 2024 CID-Gallup poll had Asfura at 21%, Castro (as a proxy) at 18%, and Nasralla at 18%.

The two opposition candidates, Salvador Nasralla and Nasry Asfura, who won their primaries, are both viewed as pro-business; therefore, the political climate could change favorably for Prospera after the upcoming election in November.

The Suit Against the Honduran Government - Because the socialist government of Honduras has not been living up to their end of the ZEDE agreement, Prospera has been forced to seek relief through the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) for up to $11,775,000,000, depending on the extent of the instability and expropriation. Since Xiomara Castro’s election, fourteen other investment groups have filed international arbitration claims against the country, citing the socialist government’s anti-private investment policies as negatively impacting investors. The ICSID accepted the Prospera case in February of 2023 and has been moving forward in a manner generally perceived as potentially favorable for Prospera and a judgement is expected in the next year and a half where, if Prospera is successful, there will be an appeal process so it might be two years before the company has an enforceable judgment OR the new government could change the conditions and begin abiding by the original agreement. The case can be followed online at: https://icsid.worldbank.org/cases/case-database/case-detail?CaseNo=ARB/23/2

Who Are Prospera’s Competitors?

Tipolis - Competitive Governance Provider - Run by Titus Gebel, the founder of the Free Cities Foundation, is also building a world-class company to deliver “Governance as a Service.” The company has signed a letter of intent for a Free Private City in Brunei. Tipolis is also an investor in Prospera. Let the coopetition begin! Who can deliver better governance cost-effectively?

Ciudad Morazán - Competitive ZEDE in Honduras - Ciudad Morazán is a community situated at the outskirts of Choloma, Honduras, the country's third-largest city and a vibrant manufacturing hub. Morazán was the second ZEDE to be established in Honduras, before the repeal of the ZEDE law in April 2022.

With a focus on manufacturing and industrial processes, the project aims to provide prospective industrial tenants with a business-friendly environment and residents with safe, affordable housing and amenities. The first industry to move in will be project leader Massimo Mazzone’s pharmaceutical company. Future tenants are likely to be maquilas, or textile manufacturers.

About the Author

Etienne de la Boetie² is the founder of the Art of Liberty Foundation, and the editor of the Art of Liberty Daily News on Substack and Five Meme Friday, which delivers hard-hitting voluntaryist memes and the best of the alternative media. He is an internationally recognized expert and speaker on voluntaryism and government illegitimacy, criminality and corruption. His original writings and research can be found at ArtOfLiberty.org and ArtOfLiberty.Substack.com

He is the author of the new book To See the Cage is the To Leave It – 25 Techniques That the Few Use to Control the Many which pulls back the curtain on one of history’s most successful psychological operations: The US government and the monopoly media have been using a variety of unethically manipulative techniques to get free and independent human beings to self-identify as “Americans” so they can be tax farmed. The techniques range from mandatory schools to anchoring/product placing the flag in moments of high positive emotion in movies and television shows. From a hidden curriculum in scouting to subliminal programming in television “programming”. Boetie2 is also the author of “Government” – The Biggest Scam in History… Exposed! which breaks down how inter-generational organized crime centered around banking and central banking is robbing and controlling the population using the technique of “government” with puppet politicians and monopoly media/academia. His upcoming book: Voluntaryism – How the Only “ISM” Fair for Everyone Leads to Harmony, Prosperity and Good Karma for All! explains how REAL freedom (voluntaryism) can provide all the legitimate non-redistributive services offered by “government” without the waste, fraud, abuse, indoctrination and extortion.

About the Art of Liberty Foundation

A start-up public policy organization: Voluntaryist crime fighters exposing the illegitimacy and criminality of “government,” and their partnership with monopoly media/academia. The foundation promotes voluntary free market solutions, charities vs. inefficient “government” aid based on extortion.

The foundation is the publisher of Important News from the Art of Liberty Foundation, The Daily News from the Art of Liberty Foundation and Five Meme Friday - a weekly e-mail or Telegram summary of the best of the alternative media, censored truth videos, and at least five hot, fresh, dank liberty memes every week, and “Government,” Media, and Academia Exposed! - A Telegram summary of the best mainstream and alternative news stories proving our thesis that all three are being hierarchically controlled by inter-generational organized crime interests.

The foundation’s recent conference, Liberty on the Rocks - Sedona - The Voluntaryism Conference featured leading economists, legal scholars, and political theorists explaining how the free market can provide all the legitimate, non-redistributive services provided by monopoly “government” better, faster and cheaper without the waste, fraud, abuse and extortion.

Go paid at the $5 a month level, and we will send you both the PDF and e-Pub versions of “Government” - The Biggest Scam in History… Exposed! and a coupon code for 10% off anything in the Government-Scam.com/Store.

Go paid at the $50 a year level, and we will send you a free paperback edition of Etienne’s book “Government” - The Biggest Scam in History… Exposed! OR a 64GB Liberator flash drive if you live in the US. If you are international, we will give you a $10 credit towards shipping if you agree to pay the remainder.

Support us at the $250 Founding Member Level and get a signed high-resolution hardcover of “Government” + Liberator flash drive + Larken Rose’s The Most Dangerous Superstition + Art of Liberty Foundation Stickers delivered anywhere in the world. Our only option for signed copies besides catching Etienne @ an event