A New Global Hub for Tax Residency
Próspera ZEDE, the fast-growing special economic zone on the island of Roatán, has enacted one of the world’s most innovative personal tax frameworks: a $5,000 annual lump-sum tax that fully satisfies an eligible resident’s income-tax obligations. The newly published Regulation Establishing the Lump Sum Tax Regime marks a decisive shift toward a simpler, internationally defensible model of global tax residency designed for digital nomads, entrepreneurs, and globally mobile professionals.
The regulation—promulgated by the Próspera Tax Commissioner following approval by the Próspera Council—creates a streamlined pathway for individuals seeking predictable taxation, legal certainty, and international tax compliance, without the burdens of traditional relocation requirements.
Simple, Transparent, and Globally Compliant Tax Residency
According to the regulation, any natural person may elect to participate in the Lump Sum Tax Regime by paying a flat annual tax of US$5,000 (also payable in Lempira, gold, or approved cryptocurrencies). This fixed amount replaces all Natural Person Income Tax obligations for the year, offering unmatched tax predictability in a time of increasing global fiscal complexity.
To qualify, applicants must:
-
Declare Próspera as their exclusive tax residence, pledging not to be a tax resident elsewhere
-
They are Digital Nomads, not staying in Próspera for more than 90 days in a given year
-
Establish or maintain a business registered in the Próspera Entity Registry, ensuring real economic presence
-
Visit Próspera for at least seven consecutive days each year, creating a tangible connection to the jurisdiction
These requirements are intentionally structured to align with OECD standards, international anti-avoidance norms, and the broader shift toward substance-based taxation.
Critically: there is no need for full relocation, making Próspera uniquely appealing for remote workers and location-independent entrepreneurs seeking legal clarity.
What Participants Receive: Tax Certainty and Recognized Residency
Those accepted into the regime receive:
-
Full satisfaction of their income-tax liability under Próspera law, regardless of earnings level;
-
Official confirmation of tax compliance status, a key document when opening international bank accounts or proving lawful tax residency.
If a participant earns income sourced directly from Próspera and their liability would exceed US$5,000 under normal rules, the system applies a credit mechanism: the lump-sum acts as a prepayment, and only the difference is owed. This preserves fairness while keeping the framework transparent.
Contrary to misconceptions, the lump-sum regime does not eliminate VAT, customs duties, property taxes, or other indirect levies. It solely replaces Natural Person Income Tax obligations.
Designed for Digital Nomads and Global Entrepreneurs
With the spread of remote work and the rise of cross-border entrepreneurship, tax systems worldwide are straining under outdated residency rules. Próspera positions itself as a next-generation jurisdiction—one capable of competing with Dubai, Singapore, and Panama in attracting globally mobile talent.
Key concepts reflected in the regulation include:
-
Digital nomad tax residency options
-
Territorial tax systems
-
Flat-tax environments for entrepreneurs
-
Crypto-friendly tax jurisdictions
-
Próspera e-Residency and residency
These features make Próspera increasingly visible among individuals researching low-tax jurisdictions, legal tax optimization, and residency-by-business-presence programs.
Strong International Cooperation and Transparency
Unlike many offshore jurisdictions historically associated with secrecy, Próspera emphasizes tax transparency and cooperation with foreign tax authorities. The regulation explicitly states that Próspera stands ready to enter tax information exchange agreements (TIEAs) and double-taxation agreements (DTAs).
This positions Próspera as a legitimate, compliance-oriented hub, not a secrecy-based tax haven. This increases its international acceptability and makes the Tax Residency more globally competitive.
A New Competitor Among Global Tax Havens—But Fully Legal
Próspera’s Lump Sum Tax Regime offers an unusual combination:
-
Flat, predictable taxation
-
Minimal physical presence requirements
-
Recognition as a legitimate tax residency
-
Cryptocurrency-friendly payment options
-
Entity-based economic presence for substance requirements
-
OECD-aligned transparency commitments
For individuals researching how to reduce taxes legally, where to establish tax residency, or which countries offer lump-sum taxation, Próspera is now substantively part of the global conversation.
In an era of tightening fiscal controls and rising tax burdens across the West, this may be one of the most significant personal tax innovations of the decade.
See the formal announcement about the the Lump Sum Tax Program:
https://www.prospera.co/en/lump-sum-tax
To secure a Próspera Tax Residency, the application is available here:
https://nomadlayer.com/order