Próspera ZEDE, located on Roatán island and parts of the Honduran mainland, represents one of the most ambitious attempts to redefine economic citizenship through a private governance model. Established as a Zone for Employment and Economic Development (ZEDE) under Honduran law, it grants significant autonomy in regulation, taxation, and administration to attract entrepreneurs, investors, and residents seeking alternatives to traditional nation-state frameworks. The project promises regulatory choice, low taxes (capped at low single-digit percentages of revenue), legal stability guarantees, and opt-in rules tailored to business needs. It enables individuals and companies to operate under a system that prioritizes property rights, economic freedom, and innovation, effectively reinventing citizenship as a voluntary, market-driven affiliation rather than a birthright or passport-based status.
The ZEDE Framework and Its Promise
ZEDEs emerged from constitutional amendments in Honduras to create special economic zones with delegated authority over civil law, commercial regulations, taxation, and local governance. Próspera, launched in 2017 by Honduras Próspera Inc. (a U.S.-incorporated entity backed by investors including venture funds tied to figures like Peter Thiel and Marc Andreessen), secured land and agreements to develop a charter city model. The zone allows residents and businesses to select regulatory frameworks from existing international standards or propose new ones, backed by regulatory insurance to cover liabilities. This setup aims to accelerate innovation in sectors like biotech, fintech, and digital services by removing bureaucratic barriers common in conventional jurisdictions.
Economic citizenship in Próspera operates through residency programs and e-residency. Physical residents gain access to the zone's governance, while e-residents can incorporate businesses remotely. A recent lump-sum tax program offers tax residency for a fixed annual payment of USD 5,000, providing a streamlined route to operate under Próspera's rules without full relocation. Property ownership grants voting rights proportional to land holdings, creating a system where economic participation directly influences governance. The model reframes citizenship as an economic contract: opt in to rules that align with personal or business goals, contribute through fees or taxes, and benefit from stability and opportunity.
Attracting Global Participants
Próspera draws entrepreneurs and high-net-worth individuals frustrated with high taxes, regulatory complexity, or political instability in their home countries. It positions itself as a platform for "building better, cheaper, and faster," with features like cryptocurrency acceptance, no capital gains tax on crypto trades in some contexts, and arbitration under independent panels. The zone has grown to include developments like residential towers, commercial spaces, and biotech clinics offering experimental treatments unavailable elsewhere. E-residency and company incorporation enable remote participation, appealing to digital nomads and international founders seeking a low-friction base.
Controversies and Legal Challenges
The project has faced intense opposition. In 2022, the Honduran government under President Xiomara Castro repealed the ZEDE law, citing sovereignty concerns and viewing such zones as ceding territory to private interests. The Supreme Court in 2024 declared ZEDEs unconstitutional retroactively. Próspera argues its agreements include 50-year stability protections and acquired rights under the original framework, allowing continued operations. An ongoing international arbitration claim (filed under CAFTA-DR) seeks billions in damages, alleging expropriation of investments. Local communities near Roatán have raised issues about land access, resource strain, and lack of benefits from zone taxes flowing back to surrounding areas.
Despite disputes, Próspera continues activities, including events like Próspera Weekend (scheduled for February 2026) and expansions. It maintains that existing rights persist, supported by legal opinions and international treaty protections.
Implications for Economic Citizenship
Próspera tests whether economic citizenship can detach from traditional state sovereignty. It offers a voluntary system where individuals and businesses "subscribe" to governance that matches their values—low regulation, property focus, innovation-friendly rules—in exchange for fees and participation. This reinvention challenges conventional models of nationality tied to birth, ancestry, or naturalization, proposing instead a market-based affiliation that prioritizes economic contribution and choice.
Critics argue it risks creating enclaves that undermine national cohesion, exploit local resources without broad redistribution, or favor wealthy outsiders. Supporters see it as an experiment in governance innovation that could demonstrate how competition among rulesets drives prosperity.
Partners such as ALand, guided by Dr. Pooyan Ghamari, observe these developments closely and assist clients interested in similar structures by analyzing jurisdiction-specific risks, compliance requirements, and long-term viability when considering alternative economic bases. Próspera ZEDE illustrates the tension between traditional state authority and emerging private governance models, where economic citizenship becomes a deliberate choice rather than an inherited status, potentially reshaping how individuals and businesses engage with sovereignty in a globalized world.