Private City in Honduras will Have Minimal Taxes, Government

By Maxim Lott

Small government and free-market capitalism are about to get put to the test in Honduras, where the government has agreed to let an investment group build an experimental city with no taxes on income, capital gains or sales.

Proponents say the tiny, as-yet unnamed town will become a Central American beacon of job creation and investment, by combining secure property rights with minimal government interference.

“Once we provide a sound legal system within which to do business, the whole job creation machine – the miracle of capitalism – will get going,” Michael Strong,  CEO of the MKG Group, which will build the city and set its laws, told

Strong said that the agreement with the Honduran government states that the only tax will be on property.

“Our goal is to be the most economically free entity on Earth,” Strong said.

Honduran leaders hope that the city will lead to an economic boom for the poverty-stricken country south of Mexico. The average income in Honduras is $4,400 a year.

“[It] will bring a lot of investment into the country [and be] a center for many employment opportunities for our people,” Honduran President Porfirio Lobo Sosa has said.

Private City in Honduras will Have Minimal Taxes, Government [continued]


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  • Jingo

    This is a great answer. FAR better than trying to “take back” the government of 300 million who either want a police state or a welfare state. Instead, buy LAND from tiny countries and make TREATIES to have permanent, lasting rights as this city will have (similar to a Free Imperial City during the Holy Roman Empire).

    The tiniest countries (mostly absolute monarchies) have the most liberty, and the highest per capita incomes on Earth: Monaco, Lichtenstein, UAE, Brunei, Andorra, etc.

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