Belize's Real Estate Market: A Tropical Paradise Within Reach

Belize is known for its lush jungles, pristine beaches, and vibrant reefs, and is home to some of the best diving, snorkelling, and fishing in the world. The country has a lot to offer in terms of investment, beauty, and lifestyle, and is a popular choice for foreign investors looking to secure land in this emerging destination. The affordability and low cost of ownership, coupled with strong property ownership rights that allow for full foreign ownership, make Belize an attractive option for investors, expats, and retirees alike.

One of the major draws of owning land in Belize is the incredibly low property tax rates, which make owning land very inexpensive. Most properties are taxed at 1% to 1.5% of their assessed value, and property assessments are usually 10-30% of the property's actual resale or market value. For example, property taxes for land around Belize Secret Beach start at $75 per year, while property taxes in Mahogany Bay are $108 per year.

In addition, Belize has no capital gains tax, so if you purchase land and later sell it for a profit, you keep all the profits. There is also no requirement for citizenship or residency to own property in Belize, and foreigners have the same ownership rights as locals. This, along with the ease of purchasing, similarity to first-world contracts, and the use of English as an official language, makes Belize an attractive real estate option for foreigners.

Foreigners' rights

Belize is one of the few countries in the world where foreigners enjoy the same rights as nationals in land ownership and tenure. Foreigners have the exact same property ownership rights as Belizean citizens, and there is no requirement for citizenship or residency to own property. This makes it very easy for foreigners to own property in Belize.

There are a few things to keep in mind, however. Firstly, every land purchase is subject to a Government Stamp Transfer Tax, which is about 5% of the purchase price. Secondly, while foreigners can own almost any piece of property in Belize, including beachfront land, the first 66 feet from the high tide is public property and cannot be purchased.

When buying property in Belize, it is recommended to do all real estate transactions through a licensed Belize real estate agent or an ethical Belize attorney-at-law. A title search should be conducted at the Government Land Registry to ensure that the property is free and clear of all liens, judgments, and encumbrances. This should cost no more than US$250.

Additionally, it is important to be aware of local Belize real estate scams. Be wary of fast-talking real estate brokers or attorneys using high-pressure sales tactics. It is also recommended to be cautious when a realtor or seller says they can do their own closings, as it is always advised to use a Closing Company.

Overall, Belize is a great place for foreigners to invest in real estate, with its strong property ownership rights, low property taxes, and English as the official language, making contracts and legal matters easy to navigate.

No capital gains tax

Belize is considered a tax haven, allowing individuals and corporations to legally reduce their tax liabilities. The country has no capital gains tax, meaning that if you buy land and later sell it for a profit, you pay no capital gains tax. All profits remain with you.

Belize has a low property tax rate, with a house or condo worth $250,000 on Ambergris Caye attracting an annual property tax of under $375. In some rural areas, property taxes are even lower. For example, a mansion in the village of Succotz, near Belize's western border, has an annual property tax of just $8.

Belize's tax code defines offshore income as dividends, capital gains, earned interest, and revenues. Dividends paid by offshore companies incorporated in Belize to non-citizens of the country are also tax-free.

In the early 1990s, the Belizean government consulted with professionals in Guernsey and other top safe havens to draft legislation that would enable Belize to become a tax haven. The country established the International Business Companies Act (IBCA), the Trusts Act, and the Offshore Banking Act, which have attracted offshore companies and moved Belize to the forefront of international financial service jurisdictions.

While U.S. residents must still report earnings to the IRS, they can get an inclusion to protect and shield up to $108,700 of their income, including earnings from an offshore company in Belize.

Belize's tax laws, combined with its English-speaking population and laws similar to those in the U.S., make it one of the world's top tax havens and a safe locale for your money.

Property taxes

Belize is known for its low property taxes. The amount of property tax owed depends on the type of property and its location. Properties in Belize are assessed by the Department of Natural Resources, and property taxes are due on April 1st of each year.

For example, a house or condo on Ambergris Caye worth $250,000 would attract an annual property tax of under $375. A property worth $250,000 may have property taxes as low as $500 to $1000 per year. In cities, property taxes are based on the actual rental income of the property or the assessed rental value.

The buying process

The process of buying property in Belize is similar to that of other foreign countries, including Canada and the US. However, it is important to be aware of potential local scams and to seek out experts for assistance.

The first step is to begin the search for your ideal property. This can be done by consulting local realtors' websites, bank foreclosure listings, and speaking to locals. It is worth noting that not all properties may be listed with a realtor, so exploring different parts of the country and getting to know the locals and their lifestyles can be beneficial.

Once you've decided on a property that suits your needs and budget, the next step is to make an offer. This can be done verbally or in writing through a trusted real estate agent or lawyer. The offer will outline your desired purchase price and any conditions, such as a quick closing. If your offer is accepted, great! However, the seller may also respond with a counter-offer, which you can then negotiate. Once the price is agreed upon and the offer is signed, you will need to provide a deposit, typically around 10% of the purchase price.

The next step is to hire a lawyer and conduct a title search to ensure that the property is free of any mortgages, liens, or unpaid taxes. The lawyer's fee typically ranges between 1-3% of the sale price. After the necessary research is done, your lawyer will prepare a Purchase Agreement, a detailed version of the offer. Once both parties accept and sign the agreement, you will need to pay the purchase price in full. If you don't have the cash on hand, local and offshore banks can offer loans at reasonable rates.

At this point, a 5% Stamp Duty must be paid to the Government of Belize to transfer the property's title to your name. Keep in mind that the government has the right to value the property and charge you based on their evaluation, not just the purchase price. After the Stamp Duty is paid, it typically takes a minimum of 30 to 60 days or more for the title to be transferred into your name.

Once the title transfer is complete and the seller has been paid, you will be able to take legal possession of the property. If you are purchasing a home, ensure that you have the authorization to transfer utilities into your name, and don't forget to change the gate and main locks. Congratulations! You now own a piece of paradise in Belize.

It is important to note that while the process may seem straightforward, it is always recommended to work with reputable local experts, including realtors and attorneys, to protect yourself from potential scams and ensure a smooth transaction.

Where to look

The best places to look for property in Belize depend on what you're looking for. If you're looking for a property tucked away in the hills, consider the Cayo District. If you want to be a beach bum, Ambergris Caye, Caye Caulker, or Placencia are good options. If you want to hang out with the locals and assimilate into the culture, then consider Dangriga Town, Hopkins, or Corozal.

Ambergris Caye is the country's primary tourist destination, with the well-developed town of San Pedro as its capital. Here, you can find high-end, luxurious resorts and condominiums, as well as midrange properties. San Pedro also offers undeveloped lots with beach frontage, located just minutes from town.

Placencia, on the southern tip of Belize, boasts white sand beaches and stunning scenery. It's slower-paced than Ambergris Caye and offers hostels, lodges, and resorts at all price levels.

Caye Caulker is a tiny, self-sufficient island that is popular with backpackers and divers. It has its own airstrip, hotels, and businesses.

Corozal is a town close to the Mexican border, and residents often travel to the nearby Mexican city of Chetumal for shopping, medical care, and American-style food.

The Cayo District is the "hidden gem" of Belize, according to expatriates. Although it's not on the beach, it's the eco-tourism centre of the country. The capital town of San Ignacio is well-developed and only an hour from Belize's capital, Belmopan.

If you're looking for a more affordable option, consider renting before buying. This will give you a chance to experience the area before committing to a purchase.

To find properties, you can check local realtor websites or bank foreclosure listings. You can also speak to locals, rent a vehicle, and explore different parts of the country to get a feel for the available options and the local lifestyle.

Remember to do your research and be wary of scams. It's recommended to work with a licensed Belize real estate agent or an ethical Belize attorney-at-law to ensure a smooth and secure transaction.

Frequently asked questions