Prospera is a city, a city that could be defined as a private or charter city. It is a perfectly legal city, fully recognised by the government of the country in which it is located, Honduras, and fully compliant with international law. Prospera is a city where anyone can choose their preferred tax regime and the laws of the country they prefer, and can live and do business in a completely transparent, legal and recognised manner.
Who founded Pròspera and what is it?
Prospera ZEDE was conceived and founded by Erick Brimen, a Venezuelan financial manager, who formally submitted the charter city application in Honduras in 2017 through Honduras Próspera Inc., a company incorporated in Delaware (USA). The co-founder of the project is Gabriel Delgado Ayau, a Guatemalan national. The project was developed based on the concept of a ‘charter city’ originally theorised by economist and former chief economist of the World Bank Paul Romer (Nobel Prize in Economics 2018).
Is this a private area?
Yes, to a large extent. Pròspera is a ZEDE (Zona para el Empleo y el Desarrollo Económico), or a semi-autonomous zone recognised by the Honduran Constitution, but managed by a private entity — Honduras Próspera Inc. — which holds a veto vote on the city’s governance council. In practice, it is a hybrid model: it operates on Honduran soil and under the formal sovereignty of Honduras (including criminal law), but with its own completely autonomous fiscal, civil, commercial and arbitration systems. It has been described by the international press as ‘the first private for-profit city’ and ‘the Hong Kong of the Caribbean’.
Who invested?
Próspera’s main investors include prominent names from Silicon Valley: Marc Andreessen (Andreessen Horowitz), Balaji Srinivasan (former CTO of Coinbase) and, since January 2025, Coinbase itself through its venture capital division. Investments have been channelled mainly through the Pronomos Capital fund.
Governmental and legal context
The previous government attempted to expel Próspera, but failed due to solid international agreements on stability and capital protection, despite never receiving approval from the Supreme Court (which declared the ZEDE law unconstitutional in 2024). Investors initially claimed $10.775 billion against the Honduran government in December 2022 at ICSID, under the CAFTA-DR treaty; the figure was then reduced to $1.63 billion in October 2025.
Position of the new government
The new government is the same one that originally approved Próspera (under the Hernández administration in 2013–2017) and continues to invest in and support the initiative, overcoming past tensions. Dentons legal opinion (now superseded by the new government context).
Why Pròspera is unique, key points
- Contractually guaranteed legal stability: Unlike other jurisdictions, Pròspera’s tax and regulatory rules are locked in via a contract at the time of residency or incorporation. They cannot be changed unilaterally, offering unprecedented long-term predictability, protected by international arbitration.
- Regulatory choice: Pròspera is the only jurisdiction in the world that allows companies and individuals to choose their regulatory framework. You can operate under common law, adopt the laws of another country, or even propose your own set of ‘optimal’ rules, overseen by a competitive market of insurers and arbitrators [1]. This eliminates regulatory monopolies (such as the US Food and Drug Administration or the Securities and Exchange Commission) and accelerates innovation.
- Simple and competitive taxation: Pròspera offers a radically simple and low-tax regime, eliminating most complex taxes (capital gains, inheritance, dividends, etc.). The highlights are:
- 1% effective tax on revenue generated in Pròspera (calculated as 10% tax on 10% of gross revenue) and 0% on revenue generated outside Pròspera [2].
- 5% effective tax on personal income (calculated as 10% tax on 50% of gross income) [2].
- The first jurisdiction in the world to adopt bitcoin as a unit of account: Companies in Pròspera can legally keep their accounts and pay taxes in bitcoin (BTC), offering unique stability and financial freedom for crypto and global businesses [2].
- Fast and efficient dispute resolution: Instead of slow and expensive state courts, Pròspera relies on a private, independent and competitive arbitration system. Resolution times are 1-4 months with affordable costs, compared to 6-18+ months in traditional systems [2].
- Hub for innovation in regulated sectors: Thanks to regulatory flexibility, Pròspera is becoming a global centre for innovation in sectors such as biotech, medtech, fintech and crypto. Projects that would take years and hundreds of millions of dollars in other jurisdictions can be developed in months and at a fraction of the cost [1].
ProspIn, the easiest way to launch your business in Pròspera
ProspIn is the one-stop-shop platform that makes incorporating a company in Pròspera a quick, automated process accessible to everyone, also offering a suite of services and products dedicated to Pròspera companies. ProspIn is an official partner (layer 2) of Pròspera with the aim of attracting business to the jurisdiction and a partner of Draper Nation (founded by renowned investor Tim Draper) which aims to create ‘the infrastructure of freedom’.
What ProspIn offers
- LLC incorporation in 24 hours: ProspIn transforms a complex process into a digital experience that takes just a few minutes and incorporation within 24 hours. Thanks to our direct partnership with Pròspera, the LLC is approved and activated in less than 24 hours.
- Anonymity and privacy (anonymous LLC structure): By using ProspIn, founders benefit from a layer of privacy that protects their identity from public records and competitors.
- No annual e-residency requirement: ProspIn clients bypass the need to pay Pròspera’s annual e-residency fee, further simplifying management and reducing recurring costs.
- Simplified filing: The ProspIn platform assists users with quarterly and annual declarations and sends automatic reminders to ensure full compliance.
- Access to a network of exclusive partners: ProspIn members get special terms on essential services such as banking (OneSafe, Slash), payments (Paddle, Dodo Payment), and productivity tools (Notion, ClickUp).
The Free cities conference
Between 3 and 6 September 2026, Pròspera will become a destination capable of attracting anyone from around the world who may be interested in this innovative model of social and economic organisation, as St John’s Bay on the island of Roatán, where Pròspera is located (pictured), will host the Free Cities conference. The Free Cities conference, which in previous editions was held in Prague, is coming to Pròspera for the first time with a programme that extends beyond the three days of the conference and includes activities, workshops and networking from 31 August to 7 September.
Próspera is at the forefront when it comes to aspects such as sovereignty, clarity and independence. Companies can only operate with blockchain and distributed ledgers if, for example, they wish to remain outside the banking system. For start-ups in general, but particularly those that leverage innovation linked to artificial intelligence and SaaS, Próspera may prove to be the ideal place to conduct business, although it should be noted that it is advisable to take into account all considerations depending on the stage of development of the company. for example, is in the fundraising phase, it must also consider how investors may view its location in the charter city, even though, as we have seen, it is precisely Silicon Valley VCs who were the first to believe and invest in the project based on the island of Honduras.
References
[1] Próspera. (n.d.). A governance platform where entrepreneurs are Free to Build. https://www.prospera.co/en
[2] Próspera. (n.d.). Start & Grow Your Business in Próspera. https://www.prospera.co/en/business
[3] ProspIn. (n.d.). Próspera ZEDE LLC Formation — 0% Tax on Global Revenue. https://www.prospin.io
[4] ProspIn. (n.d.). The Main ProspIn Benefits (homepage sction). https://www.prospin.io
ALL RIGHTS RESERVED ©