Próspera was founded as a charter city, as defined by an amendment to the Honduran constitution. It is formally a Zone for Employment and Economic Development (ZEDE), or an economic development zone intended to generate economic growth and thus help take Honduras out of poverty. As such, Próspera is relieved from many a burden of the national government and has its own power to tax and regulate. It is, one could say, its own “city state” or a second system within the country. And it is run based on a libertarian philosophy of private property and free markets.

Spanning over 1,000 acres, and with plans for more, Próspera has permanent residents, houses a number of businesses that provide employment for local workers, and runs a beach resort with the island’s only 18-hole golf course: Pristine Bay. The ZEDE has been very successful at attracting businesses, both local and international, to both move there and start new operations. Among others, Próspera is home to pharmaceutical companies conducting clinical studies and a woodwork factory. Próspera has also attracted capital investments from venture capital firms and wealthy individuals including Peter Thiel (PayPal, Facebook, Palantir) and Marc Andreessen (Netscape, a16z).

Residents can buy or rent a house in Pristine Bay or an apartment in the newly-finalized high-rise Duna—the first completed of three planned towers—with excellent views of the bay and a rooftop terrace with infinity pool. The climate sees warm temperatures year-round. The economic climate is also excellent: businesses in the zone’s 10 regulated industries may choose among a set of regulatory codes or operate under common law (but must obtain a Qualified Regulatory Insurance Policy). Tax rates are kept at a very low level: businesses pay 1 percent of revenue and individuals 5 percent of wages, and there is also a 2.5 percent sales tax. And Bitcoin is legal tender.