| Official Name: | Próspera |
| Pushpin Map: | Honduras |
| Subdivision Type: | Country |
| Subdivision Type1: | Department |
| Subdivision Name1: | Bay Islands |
| Leader Title: | Mayor |
| Coordinates: | 16.3667°N -114°W |
Próspera is a private city and special economic zone on the island of Roatán in the Central American state of Honduras. The city is an autonomous zone with its own fiscal, regulatory, and legal architecture.[1] The project is lead by Honduras Prósonduras Próspera Incpera Inc., which itself is funded by venture capitalists and has veto vote in Próspera's governing council.
Próspera is a semi-autonomous city established under Honduran Zone for Employment and Economic Development (ZEDE) laws, inspired by the concept of charter cities and cities such as Hong Kong, Singapore, and Dubai. Through low taxes, privatized government, social services, and self-regulation, the city hopes to drive economic development and innovation that the city argues would not occur under normal government frameworks.[2]
Under the Honduran ZEDE law, Próspera has its own civil law and regulatory structure, independent of that of Honduras. However, ZEDEs remain bound by the Honduran constitution and its criminal law code.
The project is managed by Honduras Prósonduras Próspera Incpera Inc. The company is financed by several investors and venture capital firms, including Balaji Srinivasan, Peter Thiel, and Marc Andreessen, through the venture capital company Pronomos Capital.[3]
Social services such as health and education are planned to be privatized and financed from taxes, fees, and the sale of land to new residents and investors. Individuals can apply for "e-residency", which allows them to register businesses in Próspera and benefit from the local tax and regulatory structure.[4]
Residents must sign the city's social contract and pay an annual fee to live in Próspera, which is $260 for Hondurans and $1,300 for foreigners.[5]
Bitcoin is legal tender in Próspera.[6]
ZEDEs were the brainchild of American economist and Nobel Memorial Prize laureate Paul Romer, who was initially involved in the project.
The foundation for the Honduran ZEDE project (Zone for Employment and Economic Development) was laid in 2011 under President Porfirio Lobo Sosa. It was declared invalid by the Honduran Supreme Court in 2012 because it would violate Honduras' national sovereignty. A modified plan was approved by the Supreme Court in 2013, under different judges.
ZEDEs were designed to be unrepealable for 50 years, to give foreign investors the necessary confidence to invest capital. By early 2021, the project was starting and the city's first buildings were constructed. German architect Patrik Schumacher was involved in the design of the apartments.Shortly afterward, Honduran President Xiomara Castro made repeal of the enabling legislation for the ZEDEs a key campaign issue, and in April 2022 she signed legislation to accomplish the repeal.[7]
The city is governed by a council of 9 members, 5 of whom are elected and 4 of whom are appointed by Honduras Próspera Inc. Decisions are to be made by a two-thirds majority, giving Honduras Próspera Inc. a veto. Above this lies a Committee of best practices, an un-elected body whose members are appointed by the government of Honduras, with the power to approve all internal regulations and provides policy guidance[8] Although the city will be subject to the criminal justice system of Honduras, it has its own civil law.[9]
As of May 2021, Próspera was 58acres, and its charter disallows land expropriation. However, some neighbors of the project in the nearby village of Crawfish Rock expressed a fear that their land might be expropriated after a drawing of later stages of Próspera appeared on the project website including parts of Crawfish Rock.[10] Próspera's CEO has publicly supported legal reform to make the practice illegal nationwide.[11]
TUM International, an independent affiliate of Technical University of Munich withdrew from assisting the project in 2021, citing unspecified concerns about human rights in a press release.[12]