Special JurisdictionOperational

HondurasLatin America

Established
2017
Population
250–1,000 residents
Climate
Tropical
Languages
English, Spanish
Industries
Remote Work, Retail, Healthcare, R&D
Coordinates
16.37° N, 86.47° W
Who it’s for
International entrepreneurs & innovators

This advanced special economic zone is designed to be a “platform for prosperity”, offering to realize Honduras’s full potential for growth and innovation.

Próspera is an advanced special economic zone on the island of Roatán, off the Caribbean coast of Honduras. Established under the country’s ZEDE framework, it is among the most developed projects of its kind and describes itself as a “platform for prosperity”, a jurisdiction purpose-built to attract entrepreneurs, investment and innovation.

Its distinguishing feature is a flexible legal and regulatory system built on common-law foundations. Businesses operating in Próspera may adopt the regulatory regime of one of a number of developed countries, or design their own rules subject to insurance and liability requirements. Combined with low, simple taxation and strong protections for property, this is intended to give enterprises an unusual degree of choice over the rules they live under.

Under the ZEDE framework, Próspera runs its own administration and economic affairs while remaining part of Honduras, where it is bound by the national constitution and criminal law and passes a share of the taxes it collects to the central government. The jurisdiction is designed to expand gradually as landowners choose to incorporate their property into it.

Honduran ZEDEs: Their Past and Future

35 min read

Honduran ZEDEs: Their Past and Future

The ZEDE law in Honduras was repealed in April 2022 and with it, one chapter of the history of innovative governance has come to an end.

Hynek FenclHynek Fencl · Free Cities Foundation
  • 6 min read

    Honduras Election, Grokipedia, Sark & What’s Ahead

    As we approach the end of 2025, we bring you an update on the long-anticipated Honduran general election results, Grokipedia’s newly published deep dive into Free Cities, developments on Sark, and more…

    Honduras Election, Grokipedia, Sark & What’s Ahead
  • 3 min read

    We’ve Been Waiting Years to Share This…

    As many of you know, the Free Cities Conference is the one time each year when our project representatives from around the world come together to share their progress.

    We’ve Been Waiting Years to Share This…
  • 4 min read

    Free Cities News & Updates – December 2024

    As 2024 draws to a close, we reflect on a year defined by both exciting progress and notable challenges. From the establishment of new Free City projects to the continued growth of our conference, the momentum has been inspiring.

    Free Cities News & Updates – December 2024
  • 6 min read

    The Metaverse: An Incubator for Free Cities?

    Free cities are on the rise, both in the West and in the East, in wealthier countries and aspiring economies, in established democracies and more turbulent ones. And that is excellent news: more urban experiments mean more opportunities for visionaries and a wider choice of rules for us all. However, getting a green light from the host country has always been (and still remains) the ultimate obstacle. What if there were a place, a kind of innovation playground, where new governance models can be road-tested without the usual red tape or democratic wrangling? A place where ideas can go from a lightbulb moment to real-world action at warp speed? There probably is one: the metaverse.

    The Metaverse: An Incubator for Free Cities?
  • 5 min read

    Free Cities at Vitalia 2024

    Vitalia 2024 is a pop-up city hosted by the ZEDE Próspera on the island of Roatan off the coast of Honduras. Pop-up cities are temporary communities that bring together innovators from various industries to learn and share ideas and projects. They combine speeches, panel discussions, networking, and co-working to connect leading thinkers from around the world.

    Free Cities at Vitalia 2024
  • 6 min read

    Conflicted Appreciation: “Crack-Up Capitalism” Book Review

    Crack-Up Capitalism, by Canadian historian Quinn Slobodian, takes you on a journey through the history of projects and experiments often related to the Free Cities movement. It delves into attempts at winning autonomy from existing states or even establishing completely new sovereign entities. From Sealand to Somalia to Honduran ZEDEs, the book spans a worldwide array of initiatives, not just current ones but going back over half a century.

    Conflicted Appreciation: “Crack-Up Capitalism” Book Review
  • 4 min read

    Honduran Free Cities vs. Rogue Government

    Two of the most autonomous Free Cities in the world are Próspera and Ciudad Morazán in Honduras. As Zones of Employment and Economic Development (called ZEDEs for their Spanish acronym), they have faced fierce opposition from the new Honduran government for the last two years. While this is nothing new, the propaganda against the ZEDEs has increased dramatically in the last few weeks.

    Honduran Free Cities vs. Rogue Government
  • 4 min read

    Decentralize Finance Conference at Próspera

    On May 5-7, the ZEDE Próspera hosted a gathering of entrepreneurs for an entry in the ongoing series of Builders’ Summits that are taking place on the beautiful island this year. Billed as unconferences for their emphasis on networking over traditional speeches, this summit featured decentralized finance as its theme. Niklas Anzinger, the founder of Infinita VC, again organized the event.

    Decentralize Finance Conference at Próspera

Videos and articles from around the web, made by others rather than the Free Cities Foundation. Each one plays here, and the pill on it opens the original.

A private libertarian city in Honduras

Reason’s on-the-ground report on the charter-city experiment taking shape on Roatán.

Inside the “Illegal” Billionaire Paradise with its Own Laws

The popular travel channel visits Próspera to see what life inside the zone is really like.

Inside The Mysterious Bitcoin City Billionaires Are Pouring Money Into

A business-press account of the investment flowing into the zone, its low corporate taxes and the Bitcoin economy that has grown up around it.

I entered Prospera ZEDE: Millionaires’ utopia or dangerous experiment in Honduras?

A YouTuber who lives and works in Honduras goes inside the zone and weighs what it offers the country against the objections to it.

Voices from the community

People connected to Próspera: residents and neighbours rather than official representatives, but worth getting to know when learning more about it.

  • Where is Próspera?

    On the island of Roatán, off the Caribbean coast of Honduras. It was established in 2017 and is among the most developed projects of its kind.

  • Is Próspera part of Honduras?

    Yes. Próspera is a ZEDE, an advanced special economic zone that remains part of Honduras: it is bound by the national constitution and criminal law and passes a share of the taxes it collects to the central government, while running its own administration and economic affairs.

  • What makes Próspera’s legal system different?

    Businesses operating there may adopt the regulatory regime of one of a number of developed countries, or design their own rules subject to insurance and liability requirements. That flexibility sits on common-law foundations, alongside low, simple taxation and strong property protections.

  • How does Próspera grow?

    By consent rather than by decree. The jurisdiction expands gradually as landowners choose to incorporate their property into it.