I had the pleasure of visiting Próspera, a free metropolis positioned on the island Roatán off the coast of Honduras, on a wet day in December. Jorge Colindres, town’s mayor, generously guided and shared town’s historical past, successes, and political struggles.
Próspera was based as a constitution metropolis, as outlined by an modification to the Honduran structure. It’s formally a Zone for Employment and Financial Growth (ZEDE), or an financial growth zone supposed to generate financial progress and thus assist take Honduras out of poverty. As such, Próspera is relieved from many a burden of the nationwide authorities and has its personal energy to tax and regulate. It’s, one might say, its personal “city state” or a second system throughout the nation. And it’s run based mostly on a libertarian philosophy of personal property and free markets.
Spanning over 1,000 acres, and with plans for extra, Próspera has everlasting residents, homes a lot of companies that present employment for native staff, and runs a seaside resort with the island’s solely 18-hole golf course: Pristine Bay. The ZEDE has been very profitable at attracting companies, each native and worldwide, to each transfer there and begin new operations. Amongst others, Próspera is residence to pharmaceutical firms conducting scientific research and a woodwork manufacturing unit. Próspera has additionally attracted capital investments from enterprise capital companies and rich people together with Peter Thiel (PayPal, Fb, Palantir) and Marc Andreessen (Netscape, a16z).
Residents should buy or hire a home in Pristine Bay or an condo within the newly-finalized high-rise Duna—the primary accomplished of three deliberate towers—with wonderful views of the bay and a rooftop terrace with infinity pool. The local weather sees heat temperatures year-round. The financial local weather can be wonderful: companies within the zone’s 10 regulated industries might select amongst a set of regulatory codes or function below frequent legislation (however should get hold of a Certified Regulatory Insurance coverage Coverage). Tax charges are saved at a really low stage: companies pay 1 % of income and people 5 % of wages, and there’s additionally a 2.5 % gross sales tax. And Bitcoin is authorized tender.
Lately, the free metropolis has been featured within the media. Naturally, it’s predominantly dangerous press, as one would anticipate. The Honduran nationwide authorities has tried to do away with the ZEDEs and, in September 2024, the nation’s supreme courtroom declared them unconstitutional and retroactively wiped the legal guidelines off the books. However it’s unsure what the implications of this ruling are, for the reason that ZEDEs are assured by each the constitutional modification and worldwide binding treaties—and guarded by 50-year sundown clauses.
However the authorities, in fact, has different tips up its sleeve. A smear marketing campaign within the Honduran and worldwide media—together with, in fact, the New York Instances—have repeatedly reported on a lot of considerations and conflicts associated to Próspera. Lots of the tales are based mostly on a presumed battle with the poor neighboring fishing village Crawfish Rock, however Colindres says that it’s pure fantasy. There isn’t a battle, he says, however the villagers dare not say so when the journalists ask questions—as a result of they concern retaliation from native regulatory organizations. In actual fact, lots of the villagers work at Próspera, which raises their way of life, and Próspera has shared with the village useful infrastructure when the nationwide authorities has acted like corrupt governments usually do.
Colindres sees it as his job to not solely promote and develop Próspera as a enterprise and metropolis, however to make use of it to additionally construct constructive relationships with and assist the encircling society develop alongside it. Whereas a libertarian oasis like Próspera definitely and expectedly attracts heavy fireplace from statist ideologues and activists who don’t hesitate to make use of political means to thwart financial freedoms, it’s clear that Próspera is doing nice work. And it’s a very spectacular venture, which Hondurans ought to have each purpose to rejoice.
The Duna Constructing
View from the Pristine Bay Resort
View from the “Beta District” and the mayor’s workplace
The Bitcoin Middle at Próspera
