Belize Property Taxes: What You Need To Know

Belize is known for its favourable tax system for citizens and residents, and its privacy laws have made it a top tax haven for foreigners. The country's tax system is based on indirect taxation through trade-related taxes, sales tax, and rates. In addition, there is direct taxation through income and business tax. Belize does have property taxes, which are based on the value of the property and are usually paid annually. The tax rate varies between 0.75% to 1.5% of the property's market value, with the rate being set by the local government.

Property tax rates in Belize

Belize is considered a tax haven for foreigners due to its favourable tax system for citizens and residents. The country's tax system is based on indirect taxation through three main sources of income: trade-related taxes, a tax on sales, and rates. Additionally, it has direct taxation through the Income and Business Tax.

Property tax in Belize is calculated based on the market value of the property and is usually paid annually. The tax rate typically ranges from 0.75% to 1.5% of the property's market value, but can be as high as 2% in some municipalities, such as Belmopan. Belize City has a slightly higher rate of 2.5%. The local government sets the rate.

Property taxes in Belize vary depending on whether the property is occupied or unoccupied. For occupied properties, the tax rate is typically 12.5% of the yearly rental value. However, in San Pedro, the rate is 12.5% for properties with an annual value exceeding $35, and 3% for properties with an annual value of less than $35.

Unoccupied properties are subject to a lower tax rate. In San Pedro, for instance, the rate is 2% for properties valued at $300 and above, and $1 for properties valued below $300. Additionally, property transfer taxes are set at 5%, with attorney fees typically amounting to 2%. The buyer usually pays around 12.5% in closing costs, based on the total purchase price of the real estate.

Belize offers a "qualified permanent residence law", which allows retirees to enjoy a tax-free lifestyle. To qualify for residency, an individual must be present in Belize for 183 days or more during a calendar year.

How to pay property tax in Belize

Property tax in Belize is based on the value of a property and is usually paid annually. The tax rate typically ranges from 0.75% to 1.5% of the property's market value, but can be as high as 2% in some municipalities, such as Belize City. Outside of cities, property taxes are based on the value of undeveloped land to encourage development, and taxes on developed land are low. For example, the property tax on a four-bedroom U.S.-style home is estimated to be between $100 and $200.

Property tax bills are typically delivered by revenue agents, and payment is due before April of each year. The Belize City Council offers discounts for early payment and for senior citizens. Payments can be made at the main office, online, or at designated banks.

• Submit Owner's Information Form: You will receive a property tax statement via email, along with options to pay online or through a bank deposit.
• Make a Bank Deposit: If you choose to pay through a bank deposit, you will need to provide the correct reference information, including the new tax number, your full name, and "Property Tax." Send a copy of the payment along with the required details to the provided email address or WhatsApp number.
• Pay Online: You can also pay online using any local or international credit card through the Atlantic Bank Online Portal. You will need the Customer Number and Tax Number provided by the Property Tax Department.

It is important to note that property tax rates may vary depending on the municipality, so it is recommended to check with the local government or the Belize Tax Authority for the most accurate and up-to-date information.

Property tax discounts in Belize

Belize is known for its simple tax system, with property taxes being no exception. Property taxes in Belize vary between 1% and 1.5% of the value of undeveloped land. For developed land, even in cities, the property tax is low. For instance, the property tax on a four-bedroom house would likely fall in the range of $100 to $200.

Additionally, the Belize City Council offers several discounts on property taxes for its residents. Here are the details of the discount package for 2022/2023:

• A 15% discount on current property tax (2022/2023) if paid on or before January 31, 2022.
• A 10% discount on current property tax (2022/2023) if paid on or before February 28, 2022.
• A 5% discount on current property tax (2022/2023) if paid on or before March 31, 2022.

These discounts are applicable for payments made at the main office or online.

Senior citizens aged 65 or above are also offered a 25% discount on property taxes for the residence they live in. This discount is valid all year, but it only applies to one property and does not include empty lots. Proper identification is required to avail of this discount.

Furthermore, the Belize City Council offers a 50% consideration on interest for properties in arrears upon full payment of the principal from January to March 2022.

It is important to note that property taxes paid after the prescribed date will be subject to interest. Property owners are encouraged to make their payments on time to avoid additional charges.

Property tax due dates in Belize

Property taxes in Belize vary, but they are typically between 1% and 1.5% of the value of undeveloped land. Property taxes outside of cities are based on the value of the land rather than the developed value of the property, to encourage development. Property taxes on developed land, even in cities, are low. For example, the property tax on a four-bedroom U.S.-style home is likely to be in the range of $100 to $200.

The Belize City Council has informed the public that property tax bills for the year 2022/2023 are due and payable on or before April 2022. The Council is offering discounts for those who pay their property taxes early. A 15% discount is available for those who pay their current property tax (2022/2023) in full on or before January 31, 2022. A 10% discount is available for those who pay on or before February 28, 2022, and a 5% discount for those who pay on or before March 31, 2022. These discounts apply to payments made at the main office or online.

Additionally, a 25% discount is offered to senior citizens (65 years or older) on the property where they reside, and this is applicable only to one property. This discount is valid all year, but proof of identification is required, and payment must be made in full to receive the discount. It does not apply to empty lots.

The Council has also stated that all property taxes paid after the prescribed date will be levied with interest.

Property tax in Belize for foreign residents

Belize is considered a tax haven, offering a no-tax system and privacy for individuals and companies. It has no capital gains tax and has simple tax laws.

Belize has a territorial tax system, meaning that permanent residents pay income tax only on income derived from within Belize. Foreign income is not taxed.

Property taxes in Belize vary but are typically between 1% and 1.5% of the value of undeveloped land. Outside of cities, property taxes are based on land value rather than the developed value of the property, to encourage development. Property taxes on homes and other developed land, even in cities, are low. For example, the property tax on a four-bedroom U.S.-style home would likely be in the range of $100 to $200.

Property transfer taxes are currently at 5%, with attorney fees usually equalling 2%, including miscellaneous expenses. The buyer usually pays around 12.5% for closing costs, based on the total purchase price of the real estate.

Belize also levies a real property tax of 12.5% of an occupied property's yearly rental value, and a 2% tax on a vacant property's annual rental value. Property taxes cannot be more than 2% of the property's market value.

Residence in Belize

Belize offers two residence statuses: Permanent Residence and Qualified Retired Person (QRP). Foreign nationals can obtain a 30-day tourist entry permit upon arrival in Belize, which can be renewed monthly for up to a year. After that, they must apply for a work permit and then for permanent residence.

To obtain Permanent Residence status, an individual must have legally resided in Belize for at least one year. They must also prove they have valuable skills and pass a simple medical examination.

The QRP status is open to residents of the US, Canada, the EU, and Commonwealth countries, although in practice, the programme is open to nationals from other countries as well. To maintain QRP status, an individual must reside in Belize for four weeks per year and have a monthly income of at least $2,000 from sources outside Belize.

Benefits of Residence in Belize

Belize is one of the few countries where an individual can become a permanent resident without the obligation to live there permanently. Permanent residents can start their own business or look for employment. They can also come and go as they please and maintain their status even if they leave the country for ten years.

As a territorial tax system applies in Belize, residents do not pay taxes on their worldwide income as long as the income is not derived from sources within Belize.

Discounts on Property Tax

The Belize City Council offers discounts on property taxes for senior citizens (25% for those aged 65 or over) and for early payment of property tax.

Frequently asked questions