Taxes in Belize
While the governments of many nations are maybe a little too interested in what their citizens are up to and their courts are interested in taking over property, Belize is a refreshing exception. Indeed, Belize happens to belong to a diminishing number of safe havens for taxes, ensuring its people can maintain a considerable level of privacy and protection of their assets. Thanks to consulting with several other safe havens during the ’90s, Belize penned legislation enabling it to treat several forms of tax with a light hand. Look over this guide to get a good idea of what sort of obligations and protections you have by investing your money in Belize.
While Belizean income tax is 25%, it does not start being calculated until you exceed $14,500 and pension income is tax-exempt. Pursuing resident status entails spending 183+ days over one calendar year. Taxation is not graduated and capital gains tax does not exist.
It is important to remember that despite Belize’s relatively simpler tax code than the United States’ you should always consult an attorney. This advice is especially relevant to anyone planning to stay more than 183 days.
International Business Corporations (IBCs)
Even if you are not part of the Qualified Retire Persons (QRP) program, you can avoid income taxes by transferring your income and assets but not real estate into a domestic IBC. Furthermore, dividends from that IBC are exempt from taxation.
Real Estate Tax
Property transfer tax is 8% and the attorney fees for dealing with the real estate market are around 2%, including miscellaneous expenses. Whoever is buying the real estate pays 12.5% at final closing cost.
Property taxes can range in exact cost but are between 1% to 1.5% of the undeveloped land’s value. To be clear, when dealing with properties beyond any of the cities in Belize, value is assessed according to the land’s value rather than the value of whatever property will be developed on that land. This distinction exists as a means of encouraging development. When it comes to property taxes on homes or other developed land, costs are surprisingly low; a four-bedroom home comparable to similar properties in the United States would only be around $100-$200.
Now that you know how free you are to use your money on yourself instead of a government, you probably want to find a place to call home in Belize. Salt Life Belize, located on Ambergris Caye, is perfect for this goal. Whether you want a new residence, a dedicated getaway spot or even a retirement home, our top-tier amenities and accommodations will more than suffice.