Roatan Insights © October 2001
News from the Honduras Bay Islands and North Coast
October 2001
By Pierre Renaldo, The Coastwatcher©

It is probably due to the closeness of the national election that occasionally causes a noticeable stir among the usually idle. There is always a flurry of activity in the months preceding any election, but this year we await the national presidential election, so there is unprecedented activity at this time.

Just this past week, for the first time ever, the local populace of Gravel Bay and Flowers Bay have ganged up to launch an assault on garbage along the beaches that front the coastal road, from Coxen Hole to Methodist Church Cove. People actually showed up with rakes and shovels to clean up the unsightly trash that accumulates along the coastal areas on the Bay of Honduras. This unsightly collection is the result of shipping that plies the channel, dumping their garbage where they think nobody will notice and it invariably washes up on our bayside beaches.

This time the people went a step farther and a gigantic step it was. They actually cleaned up all the trash that they dumped into the drainage creeks that empty into the Bay of Honduras. I have never seen the coastal area looking so neat.

There is a large workship tied up at the public pier, which I take to be a good sign. The municipality must be serious about their commitments to the cruise ship lines about making improvements to the docking facility that will allow the larger 2,500 passenger ships to call on Roatan. Beginning in late October we are supposed to have 4 per week stopping at our island paradise.

Other activities have resumed after a long absence of any attention. The curbs and paving around the pier are again in progress, and the bridges that had been started along the coastal road are once again the object of advancement, albeit "los roccas technology", it is preferable to nothing.

Hopefully by the time many of you arrive for your annual vacations or extended stays, these projects will be completed.

I want to remind all of you who may be planning a visit to bring some things with you that may or may not be available here while you are staying on Roatan

Here is a short checklist of things to remember.

One handy dandy pocket calculator to help you from being taken to the cleaners. It also speaks a universal language, so even if you don't comprende Español you can communicate accurately about money things.

Mini first aid kit including the following: Band Aids, Tums, Imodium, Aspirin, Alki-Seltzer sunscreen, insect repellant, iodine, anti itch ointment for insect bites and antibiotic ointment.

The economy of the island is at a low ebb now so do not bring expensive cameras watches or jewelry. Buy the throwaway kind of camera, and do not bring flashy, dangly ear rings that attract attention and look expensive.

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I have received many questions about residency requirements of late, so this month I will cover in part the two most common categories. There are many others but you will have to make individual determinations to know if you qualify.

The Following is an excerpt from my book:

"How to Survive in Third World Retirement: The Handbook"

Foreword

Caribbean Islands are very glamorous places to visit. While we are vacationing on one, we lie on a beautiful white sand beach looking at the crystalline emerald sea and we dream. "Someday," you say to yourself. "Someday I'm going to come here to live. I will do this every day, just like I'm doing now. I will retire here and spend the rest of my days in this wonderful paradise."

If you are coming to Roatan as a tourist, to soak up some sun, snorkel or dive, then read all the flowery brochures and come down for some fun. If you are coming here to live, then you need to take a longer look from a different slant. Living here and vacationing are not quite the same.

Retirement is a time to which most of us look forward. After toting the barge and lifting the bales for so long, you deserve a permanent vacation in a place of your choosing. It should be all fun, with every day a new adventure in your second life. We will stroll through all the ramifications of doing just that, going about it in the right way. It can be an exciting and pleasant journey.

Roatan is a very glamorous place, rich in folklore, with a fascinating history. We walk the beaches daily that were frequented by famous pirates not too long ago. Many of the islanders here are descendants of those pirates who liked the place so much they finally settled here permanently.

Columbus was within sight of Roatan when he stopped at Guanaja, just fifteen miles to the northeast of us. On clear days, we can see the North Coast where he landed and walked on the ancient cobbled road built by indigenous Indians, centuries before his arrival.

The infamous William Walker (little Napoleon) sailed the waters of the Bay Islands. This genius, surgeon, lawyer, editor, turned privateer (filibuster) proclaimed himself Emperor of Nicaragua, after a dubious election in that war torn region. Walker was contacted by British dissidents on Roatan to help them take the Bay Islands away from Honduras. The British had recently agreed to give this island group off the North Coast to an eager Central American recipient. These breakaway British residents wanted autonomy for the Bay Islands, and convinced Walker to invade Roatan and wrest control away from Hispanic dominion.

Walker, a renowned adventurer, marauder, condottiere`, feared throughout Central America, set sail for the Bay Islands, only to make an inadvertent landing at Trujillo, a fortress outpost on the North Coast. He was captured there by British Marines in a presumed attempt to invade Nicaragua for the second time and was turned over to the Honduran Government.

At high noon on September 12, 1860, he was executed by firing squad at the ripe old age of 36.

Another interesting character who lived on Roatan for a short time was a writer known as O. Henry, whose real name was William Sydney Porter.

He came to the island in 1896 to escape prosecution and a jail sentence for embezzlement at a former place of employment in Austin, Texas. Mr. Porter had been an accountant and journalist and after returning to the U.S. to face the music, he served a three-year sentence for his crime. He then went on to become a writer of renown in his day and won acclaim for his witty and humorous short stories, many about crime and con artists. Two of my favorites were 'Shearing of the Lambs' and 'The Gentle Grafter', books of short stories written by Mr. O. Henry. There was even a radio series, back in the 30's and 40's, based on his writings named The Arkansas Traveler.

Roatan is a melting pot. There are people of many races and origins living here. The earliest inhabitants were Indians about whom little is known. They were possibly Mayan or close relatives, followed centuries later by the coming of the Garifuna, the freed African slaves from the Caribbean islands. These people settled along the coastal areas of Honduras and the Bay Islands, bringing with them a fascinating culture.

There are many Garifuna villages in existence today. The Garifuna have no written language, but they speak an ancient tongue among themselves, brought from Africa and handed down from each generation to its children. There are colorful annual Garifuna celebrations that are a wonderful treat to behold.

The Bay Islands were a British possession until the year 1863. At that time, they were formally handed over to Honduras under great pressure from the American State Department, in its efforts to rid the Western Hemisphere of European presence (Monroe Doctrine). Until then, English was the official language of the islands and many natives still speak English today. Spanish is now the official language. All legal transactions and documentation are written in Spanish.

The Spanish people came here from various parts of the mainland, to work in the building trades and at the resorts as the tourism industry of the island grew. They settled in several island communities, mainly French Harbour, Barrio los Fuertes (home of the strong) and Coxen Hole. The Central American Spanish are a mix of indigenous Indians and the descendants of the conquistadors, a very handsome dark skin race of people called Mestezo. Occasionally you will meet one with the green eyes of the Castillian.

Another prominent group in Honduras is the Christian Palestinians. These Arabic people migrated here in the early thirties during the crisis in Palestine, when the British, Arabs and the Turks were going at it over the Holy Land. They are a very prosperous people and a major factor in the commerce of Honduras today. There is a TV channel that broadcasts directly to Honduras from Dubai, with all commentary in Arabic.

The pace here is slow and I for one have learned to enjoy life this way. My hurry-scurry attitude, instilled in me as a native New Yorker was greatly tempered by spending thirty years in Florida. The Deep South has its pace, which initially I found most annoying, even maddening at times.

The people of the South had something good going for themselves and that became evident once I became 'settled in'. They managed to get things done in good time, but without all the commotion to which New Yorkers had become addicted. For us everything had to be instantaneous. Quick was not fast enough.

The pace in the Bay islands is even slower than in the Deep South. I just want you to understand that nobody is in a hurry (except maybe the taxi drivers) in this place. Life is leisurely, as it should be in a locale of tourism, relaxation and retirement. Begin to condition yourself friends, if you plan on living in paradise. Everything moves more deliberately slower here. What's the hurry?

There are some legitimate reasons for this lackadaisical gait. As an island dweller, you will soon realize that not everything to which we have become accustomed is readily available on our island. Waiting for the 'next boat' is a tradition we must endure as island dwellers, like it or not. Sometimes the 'next boat' is a ruse, a feeble excuse for some shortcoming or oversight. Nevertheless, frequently the excuse is legitimate.

The tropics have always had the reputation for things being done in slow motion. Sometimes, I think I have just imagined it when I pass a guy from Hondutel setting up a ladder to climb up a pole to fix somebody's telephone line, and when I pass by two hours later he is still standing in the same spot. Déjà vu. I remember seeing the same thing in Florida with the guys from FPL standing around as if they were in a tabloid on stage.

I have always believed that change is good for the sprit. It is refreshment for the soul, a breath of new life, challenge, a major transformation of scene, things exciting, sometimes crazy, even infuriating. But, we all come here to attain those states of mind that are induced by change. Paradise is a state of mind.

Your life here will be very different from what you have known. So much the better. It is good to get away from all that banter and bustle that has made living more hectic than you wished it to be.

Change is what living here is all about. If we wanted more of the same, we would just stay put. We yearn for something different. In time we realize that change is most often for the better, and if we look back at our own past we can remember that our lives have been filled with change. The Polynesians have a proverb, which I have felt was a personal message just meant for me, since I first read it in a book about the Hawaiian Islands.

The name of the book was, 'Born in Paradise' by Eileen Von Tempski and in it she recounted her childhood, growing up on a cattle ranch on the big Island of Hawaii. She experienced many major changes in her young life as a child there a century ago. Some very wise and loving friends instilled these words in her:

"Each life event is like a turning in the road. In order to find true happiness, one must learn to adjust to these changes."

Come to Roatan. Spend time here and on the mainland. Get to know the people, the language, the country and the cultures. Experience the lifestyle, the sometimes frustrating, often zany, downright crazy; the paradox, funny and sad at the same time.

Spend as long a time as possible in the place you intend to settle, before you take the leap into your third world, in that secret place you have been dreaming about for so long. Be sure it is for you. A two-week vacation will give you a taste. However, you do not get the full flavor until you have lived here for a while.

Now we will move on to the subjects at hand, those little necessities and the bits of paper that seem to hold the world together. The bureaucrats feed on them and the politicians invent more forms, just to test our mettle, I think. Nevertheless, it must be done in order for you to begin your new life.

The Most Common Residency Categories & General Requirements to Qualify:

I would like to emphasize the words General Requirements before I begin this discussion, and for a very sound reason. I am a firm believer in first hand information. It is the exclusive method you should use to gather facts, the only way you will know truth when seeking that often-elusive circumstance.

I could outline specifics but the minute I did that the requirements would be altered in some way and then my facts would become misinformation for any future seekers of that knowledge. Having paid good money for a 'hot scoop handbook' just a few years ago, I now find that once cherished information worthless, at least in part. The reason is that governments change, as do most regulations right along with them and besides, my source of information was not nearly as accurate as it claimed.

Here is the main point and the best advice I can ever give you. If you really want to do it right, save yourself much hassle and time, then get the information you need directly from the consulate you will be using for all of your applications and documentation.

Retiree Status:

Attaining this status will entitle you to bring in ordinary household possessions duty free. The duty free status will also apply to one vehicle of your choice. You may not sell this vehicle until after it has been in Honduras for five consecutive years, unless you pay the import tax. After five years there is no tax if you should sell the vehicle. Import tax on vehicles is 100% of book value. After five years you may import another vehicle duty free and so on every five years thereafter.

You may be charged importation tax on items not considered as ordinary household goods, if the official processing your Dispensa thinks they are not ordinary.

For instance:
1.) A case of partly used cans of spay paint.
2.) A red toolbox.

I use these two items as an example because they cost me two hundred and seventy-five bucks when I brought in my stuff. The toolbox was the biggie. The Aduana (customs agent) insisted it was the kind of red toolbox the mechanics have in the service departments of the car dealers. He refused to even go look at it. The dumb thing was worth $10.95 at Wal-Mart.

There will be some documents you will need:
a. Birth certificate
b. Valid passport
c. Marriage certificate if bringing a spouse
d. Police report from the law enforcement agency from your place of residence stating that you have no criminal record
e. Health certificate stating that you are free of communicable diseases and are in generally good health
f. Proof that you have a permanent income of at least $600* per month including spouse. * This amount may be increased by the time you read this. Check with the consul general with whom you will be making application for accurate updated information.
g. Eight passport photos
h. Money to pay for all the processing and application fees.
i.) A detailed list of all the household goods and vehicle(s) you will be importing to Honduras. This list should be organized much like a manifest since that is how it will be used. If goods are packed in boxes then list and label boxes by number, then describe briefly the contents of each. (i.e. Box #56. Hand tools and kitchen utensils.)
ii.) Banana boxes are the most wonderful things ever invented for packing, moving and storing your goods. They are very sturdy and very easy to handle with the built in handgrips. Usually available at your local supermarket for free or very little cost.
List and label all pieces of furniture. Place a numbered sticker on each piece of furniture corresponding to the number on the manifest.
iii.) Example: Item # 221- 1-three piece sectional sofa. DO NOT MAKE YOUR POSSESSIONS SOUND EXPENSIVE. Keep it simple and do not brag. I'll show you a version of how not to list this same sectional:

1- three-piece gold raw silk cushioned sectional sofa. The Aduana (pronounced 'I doan wanna') will never let you get away with that. He will think you are importing something completely out of the ordinary. He already knows all Norte Americanos are filthy rich. Keep descriptions as ordinary as you can make them sound.

The whole list of things you are importing is going to be translated into Spanish and you have no idea how your flowery language may be interpreted. Use very simple language. If you have an armoire, call it a chest. Don't confuse the already confused.

Now I will make a few suggestions to you that usually work wonders in Honduras, as to proper documentation for residency including your manifest of household goods, which will later become known as your Dispensa.

1.) Have all documents that are required to be translated into Spanish done by your consulate. There are many differences in the way Spanish is spoken and understood throughout the Western Hemisphere. Many words do not have the same meaning in Honduras as they would in Puerto Rico. You want your Spanish to be Honduras Spanish.

2.) Induce your consul to stamp all the documents two or three times, every page. People here are very impressed with documents that have many stamps. The more stamps, the more authentic and official it becomes.

3.) Pay your consul to write a special letter of recommendation for you, expressing how highly he/she thinks of you, and what a wonderful treat Honduras is in for when you arrive to live there. "The country needs people of this caliber."

4.) Do all… repeat… all, documentation and authentication in the U.S.A. Do not attempt to get it done while living here. It will take forever if it is completed at all. You will probably have to go back to the U.S. for something that you cannot get any other way, so save your money for a fun trip instead of on an expense that can be avoided.

5.) Get all information as to your residency requirements from the consulate that will be handling your case in the U.S.A. They represent the official up to the moment government regulations of Honduras. They are the only source of official government information you should rely on.

Rentista Status:

The documentation for this status is similar to Retirement status. Check with your consulate to make sure. The main differences being as follows:

a.) Proof that you have a permanent income of $1,000. per month.

Additional residency information you should authenticate through your consulate:

1.)There may be other documents and exhibits required depending on whether or not you may be coming here to work.

2.)You may not take employment under retirement status, but you can administer a business.

3.)You may own a business under either Rentista, or Retirement status.

4.)You may be granted a long term working visa or temporary residency in some circumstances, i.e. coming to Honduras as a manager or key management person for a corporation that has been in existence for at least two years. Check with your consul, who will be able to best decide how to handle your particular situation.

5.)You may qualify for residency status if your are investing in priority development/businesses advocated by the Honduran government. F.I.D.E. is the name of the promotional group.

6.) You will be required to appear for an interview before the bureau of Turismo, in Tegucigalpa before your residency request begins processing. The interview consists of a short lecture about exchanging the required amount of currency each and every month and some other inane chit-chat. Your attorney usually arranges interviews, and either he or a member of his staff will accompany you.

7.) The minimum income requirements for your type of residency must be converted from U.S. dollars to Lempiras, and the Bureau of Turismo must be notified by your bank that this has indeed been done, each and every month. The bank will do the necessary paperwork for you for a modest fee.

The Dispensa:

Some types of residencies will allow grantees to import their household goods to Honduras duty free. The document that grants this privilege is called the Dispensa. It is basically a copy of your manifest of household goods which has been approved by the Ministry of Finance giving you permission to import those items listed and approved, duty free. Here are some important facts about the Dispensa process.

1.) Your must have attained the required residency status before your Dispensa will be processed.

2.) You may import ordinary household goods and one vehicle into Honduras duty free. (1-vehicle duty every five years.)

3.) You may bring your household goods in more than one container at differing intervals, providing it is done within one year from issuance of the Dispensa.

4.) You should bring all the major appliances you will want for the foreseeable future, under the exemption of your Dispensa. They do not have to be used appliances to qualify. Merely state: 24 cu. ft. refrigerator on your manifest. Or 1- 30" electric stove. 1- upright 15 cu. ft. freezer. Do not mention ice maker, or any other 'exotic' features.

5.) You can import your goods prior to issuance of a Dispensa if you put up a cash bond* equal to the value (as assessed by the Aduana) of your listed goods. Your bond money will be refunded upon issuance of the Dispensa.

6.) I suggest you employ a customs broker if you decide to go this route. In fact, it is a wise move in any event. They more than earn their modest fees. *You may forfeit your bond money if you do not have your Dispensa within a reasonable time after putting up the bond. Ask for details from your customs broker or the Aduana.

7.) If you bring your goods into Honduras in two phases make sure you have them listed on two separate manifests, but process them all together initially. If you do not know for sure that you will be bringing in all goods listed on the second manifest, make it part of the original paperwork. You will not be penalized in any way for not bringing in something listed on the manifest, but do not over do it.

8.) Make sure all your documents are reviewed by a competent attorney in Honduras, well versed in residency work. Use only real attorneys. Avoid the people who hold themselves out as being coordinators and expeditors. They will cost you more time and money.

9.) Most attorneys here have fixed fees for residencies and the fee should include the processing of the Dispensa. Always ask for the total price for all services required. If you are not importing anything then the fee should be lesser. Verify.

10.) Luxury is a dirty word here. Do not make any of your possessions sound as if they are luxurious.

11.) Unless you enjoy rubbing elbows with the bureaucracy and are very fluent in Spanish, I suggest you turn your Dispensa over to a customs broker (Agencia Aduana). They will even handle getting your vehicle registration and your Honduran driver's license. They know the regulations and have a good working relationship with the Aduana and the policia.

The Residency Card:

When your residency is approved in Tegucigalpa, a temporary residency will be issued by the local immigrations office in Coxen Hole. You must bring in your approval letter, along with several (4) passport photos. Always have many on hand. These people love you so much they all want your picture. Every time someone tells me to take in x number of photos, I carry a few extras, and more often than not I have needed them.

You will have to have a local civil judge 'authenticate' your initial paperwork. The rules change from time to time but bring money and be prepared to do a little running around to the bank and the judge's office.

You will first be issued a temporary residency letter with your official number on it at the local immigration office. The permanent card will come in about four to six weeks later. Your new card is good for two years. Renewal is simple and inexpensive. Be sure to bring in several more photos at renewal time. You don't have to go back to see the judge for renewal.

The renewal of your driver's license requires a trip to the police station and it takes a little time and some money. Bring the required photos (At least four just in case). As I mentioned earlier, your customs broker may have already obtained your initial driver's license. Should you make application for your first driver's license yourself, the process is simple.

Filling out an application is all that is involved and paying the fee, about $20, four photos, and it is good for two years. No test, no eye exam, no judge required here either, but you may have to 'humor' the police Sargent if he can't 'make the right change' for your large denomination bank note.

Take a few small notes in Lempiras so you can almost make the right change with a little extra for him. What the hey! We all hafta make a living! This might be a help the first time you are stopped at a roadblock and you don't have your drivers license or car registration with you and your old pal the Sargent happens to be there. Dum de dum-dum!

Here is the name of an attorney who comes highly recommended with solid connections in Tegucigalpa:

Licenciada:
Ligia Muñoz
011+ 504-239 5609
or
011+504-235 6524

Getting It Here:

There are two major shipping companies serving Roatan from ports in Florida. Hybur/Hyde Shipping operates out of Medley Florida, and Jackson Shipping operates out of Tampa.

There are many other major carriers serving Puerto Cortes from ports in the U.S. on the Gulf Coast of Alabama, Louisiana and Texas. International moving companies are frequently affiliated with shipping companies, or at least they can direct you to them. If you live close to one of the shipping companies, you may be able to arrange for your container(s) to be brought directly to your residence for loading. If not you can arrange for your moving company to pack your container(s) at the shipping company's facility.

Shipping rates vary. I suggest you do a little shopping before you make a decision.
Once your container(s) arrive on Roatan they will be stored dockside until released by the Aduana. If your containers are not emptied within a specific time, you may have to pay demurrage, usually quite reasonable.

Getting your goods from the dock to your residence requires hiring some locals with a truck to take care of the transportation and move-in. There are no companies here that specialize in moving, even though they may try to convince you otherwise. People at the shipping terminals will be able to make suggestions. I would encourage you to ask around and get the names that people have had good results with. You should plan to be present for the unloading of your container(s) and moving in process at your residence.

I earlier mentioned several times that using a customs broker is a good idea. I think it would be a mistake for you to try to go it alone, unless you are very well versed in Spanish and have a thorough knowledge of the workings of the Customs Department. The brokers will more than earn their money and save you time and much frustration. They know their way around the obstacles and the *'mordida' when necessary. Remember, you are coming to the third world where bribery is an everyday part of business.
*Payola. Bribe.

Many people who have not been here before, suffer from some misconceptions about how much things cost in third world countries, especially islands in the third world. I am sorry to disillusion you but your dream is just that, a dream. There are many things that are cheap on the mainland that cost a lot more on our island. Study your Spanish numbers and get an inexpensive pocket calculator before coming here, so you cannot be easily duped on prices. All resorts, worldwide are out for the tourist bucks. It is no different here.

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Now here is a happy announcement, for me at least. If you like to read and are interested in aviation and or W.W.II, then you may be interested in my novel "Red Dog Chronicles" which has just been released in print. It is the story about the pilgrimage of a young man who wanted to be a flyer more than anything. The journey is a collection of wild hilarious escapades, interludes of young love, and the excitement of athletic and wartime combat, on the big stage, in the dream we call life. The wild flights of the only airline in history, All American Airways, Inc., that picked up and dropped mail on the fly (like the dive-bombers of W.W.II), and the exciting climax; the introduction of helicopters as lethal weapons systems in actual wartime combat, in the first major confrontation of the cold war: Korea.

Click below for a preview.
http://www.1stbooks.com/cgi-bin/1st?partner~1st|type~6|Data1~6521

Or by phone: 1st Books Library 888 - 280 7715

Many of you have asked when my book, "How to Avoid the Pitfalls: Building Your Dream Home" will be in print. I am happy to report that it should be available possibly as early as the end of 2001, but surely by early next year. Both books can also be ordered through all major bookstores.

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That will be a wrap for this month. As of October 1, 2001 the exchange rate on Roatan is
$1 U.S. = LPS 15.68

Comments or questions?

Drop me a line:

Pierre

elouis@globalnet.hn

By Pierre Renaldo, Mountain Coastal S.A,. General Contractors, Construction Management and Construction Consultants.