Global Business Complexity Index 2026: Honduras Improves Competitiveness in Central America and Strengthens Investment Appeal

The latest Global Business Complexity Index 2026 (GBCI) published by TMF Group highlights significant changes in the international business environment and shows how several Latin American and Central American countries continue to face regulatory, tax, and administrative challenges when doing business. The study analyzes 81 jurisdictions representing more than 90% of the global economy and evaluates factors related to accounting, taxation, payroll, human resources, and corporate governance.

In Latin America, countries such as Mexico, Brazil, Colombia, Bolivia, Argentina, and Peru rank among the most complex jurisdictions in the world for business operations. Mexico ranks second globally, while Colombia ranks sixth and Peru tenth.

The report notes that this regional complexity is mainly driven by frequent regulatory changes, increasing tax compliance burdens, bureaucratic administrative processes, and constant legal reforms. In addition, the rapid digitalization of tax and corporate systems requires companies to continuously adapt to new platforms and compliance requirements.

Honduras Improves Its Position and Strengthens Regional Competitiveness

One of the most relevant findings for Central America is Honduras’ progress within the index. The country ranked 65th in the 2026 Global Business Complexity Index, showing an improvement compared to previous years.

Although Honduras still faces important regulatory, tax, and administrative challenges, this improvement reflects gradual progress in business competitiveness, process modernization, and technological adaptation within the national corporate environment.

Compared to other countries in the region, Honduras maintains a more favorable position than economies considered significantly more complex, sending a positive signal to both domestic and foreign investors. The improvement in the index suggests that the Honduran business environment is beginning to provide greater predictability, operational stability, and regulatory adaptability.

For foreign investment, this represents an important factor when evaluating market-entry risks. A country with lower business complexity generally offers more agile processes for company incorporation, tax compliance, labor administration, and corporate operations, reducing administrative costs and facilitating investment decision-making.

Likewise, this progress may help strengthen Honduras’ international perception as an attractive destination for new investments, particularly in sectors such as manufacturing, services, logistics, technology, energy, and regional operational hubs. At a time when many companies are seeking to diversify operations away from highly complex markets, countries demonstrating regulatory improvements become strategically more attractive.

Benefits for Domestic and Foreign Investors

The gradual reduction in business complexity directly benefits companies already operating in Honduras as well as new investors interested in entering the market. Key benefits include:

• Easier establishment of business operations.

• Reduced regulatory uncertainty.

• Greater efficiency in administrative and tax processes.

• Better adaptation to digital compliance systems.

• Increased confidence for long-term investments.

• Improved conditions for regional expansion from Honduras.

For foreign companies, a more competitive corporate environment also helps reduce operational risks and improve financial and tax planning. In addition, it facilitates Honduras’ integration into regional expansion strategies across Central America and Latin America.

Central America Continues Its Transformation Process

Within Central America, Panama ranks 42nd globally, Guatemala 46th, Nicaragua 52nd, Costa Rica 63rd, and Honduras 65th. These results reflect that Central America continues undergoing regulatory modernization and business digitalization processes, although challenges related to bureaucracy, compliance, and regulatory stability still remain.

The report also warns that 42% of the jurisdictions analyzed expect accounting and tax processes to become even more complex over the next five years due to increasing transparency requirements, electronic reporting obligations, and international regulations.

Despite these challenges, Honduras shows positive signs within the regional context. The improvement observed in the GBCI 2026 may be interpreted as an opportunity to continue strengthening the business climate, attract foreign investment, and consolidate a more competitive and efficient corporate environment for the years ahead.

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For more information on how this innovation may affect your operation or investment in Honduras, the Galindo & Asociados team   the Galindo & Asociados team is at your disposal.

Carlos Galindo

Socio de Impuestos

carlos@galindoyasociados.com

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