What Are the Tax Benefits of Owning Property in Belize?
You’re starting to imagine your life in Belize, but you still have some concerns. Can you afford to retire here? What will your tax liabilities look like? We have good news. Buying a home here is a smart money move.
The Tax Laws Are Favorable to Foreign Buyers
As a foreigner, you have the same rights to buy and sell property as a Belizean national. The government of Belize has deliberately taken steps to reduce tax liabilities for foreigners who want to live, open businesses and retire here.
Income taxes are low. You’ll pay 25% taxes on all income over $10,000 that you earn, but earnings from a pension, Social Security or foreign business are untaxed.
If you’re getting a steady income from a pension, look into the Qualified Retirement Person (QRP) program. It offers permanent residency and several tax benefits to people who can prove they have an income of $2000 or more a month.
Property Taxes Are Low
You know how high property taxes in the US, Canada and the UK can be. That’s particularly true of homes in highly desirable areas. You might pay thousands of dollars a year to live in a scenic area with good amenities.
Property taxes in Belize are much lower. In most cases, they range from 2% to 3% of the property’s price. That includes homes that are in highly desirable, scenic settings with all the amenities.
Land taxes are equally low. They start at under 2% of the assessed value for undeveloped land and another 2% once you build the home.
Enjoy Benefits When You Rent Your Property Out
Owning a home in Belize is a smart idea for many reasons. Even if you don’t live in it all year, you’ll have a wonderful vacation home that’s ready whenever you need to get away.
If you rent it out when you’re not here, you’ll enjoy a secondary income in addition to tax breaks. You can rent it out up to two weeks a year without having to tell the IRS. You can also deduct up $25,000 in repair and maintenance costs of your property.
Belize has become a popular vacation destination. The number of visitors will continue to grow, and waterfront property will always be in high demand.
Offshore Accounts Are Legal
It is completely legal to set up offshore corporations and accounts to generate income while you’re living in Belize. If you’re a US citizen, you should ask a tax attorney about reporting offshore earnings.
Salt Life Belize Is the Right Choice
If you’re intrigued about the idea of living a tax-free lifestyle in Belize, check out the gorgeous, all-inclusive community of Salt Life Belize.