Property Taxes In Belize: A Comprehensive Guide

Property taxes in Belize are extremely low compared to other countries. In rural areas, property taxes are assessed at 1% of the value of the undeveloped land. In towns and cities, property taxes are assessed at around 7% of the value per year. However, the assessed value is generally much lower than the market value, so property taxes are often significantly cheaper than expected. For example, a plot of land worth $200,000 would have a property tax of $12-$300 per year. Additionally, Belize has no capital gains tax, making it an attractive location for real estate investment.

Property tax rates in Belize City

Property tax rates in Belize are extremely low compared to other countries. In Belize City, property tax on both occupied and unoccupied property may not exceed 2% of the market value of the property. However, the actual amount of property tax you will pay depends on the area and the type of property you own.

For example, property taxes on a two-story building in Belize City can range from Bze $800 to $1,000 per year (approximately US $400 to $500). On the other hand, taxes for lots with no structure are typically lower. If you own a vacant lot worth $100,000, you may pay around Bze $120 (US $60) in annual property taxes.

It's worth noting that the assessed value of properties in Belize City is generally much lower than what you would expect. For instance, a lot priced at $50,000 USD may have an annual property tax of only $300 USD (0.6%), while a 50-acre resort with a selling price of US $200 may have annual taxes of just US $200.

Additionally, property taxes outside of cities are based on the value of the undeveloped land rather than the developed value of the property, further encouraging development. For undeveloped land, property taxes are levied at a flat rate of 1% across Belize.

When purchasing property in Belize, it's important to be aware of other related taxes and fees. For example, there is typically a 5% land transfer fee paid by the buyer, and real estate agent fees can range from 2% to 10% of the property value. Lawyer fees for handling the transfer paperwork are usually around 2.5%, but you may be able to hire a paralegal for a flat fee of US $500 instead.

Property tax on undeveloped land

Belize is considered a tax haven, with a no-tax system and a simple tax code. Property taxes in Belize are very affordable, with rates varying from 1% to 1.5% of the value of the undeveloped land. This is a deliberate choice by the Belizean government to encourage development outside of cities, where property taxes are based on the value of the land rather than the value of the property. This means that property taxes on undeveloped land are significantly lower than in urban areas.

For example, a house or condo worth US$250,000 on Ambergris Caye would attract an annual property tax of under US$375. In rural areas, property taxes are even lower. For instance, an American expat living in a mansion in the village of Succotz, near Belize's western border, pays an annual property tax of just US$8.

Property taxes in Belize are also based on whether the property is occupied or unoccupied. In Belize City, property tax on occupied and unoccupied properties may not exceed 2% of the market value of the property. For occupied properties located in urban areas, the tax rate is 12.5%, while for unoccupied properties, the rate is 2%.

When purchasing property in Belize, there are additional costs to consider. Property transfer taxes are typically 5%, and attorney fees can add another 2%. The buyer usually pays around 12.5% of the total purchase price for closing costs.

It is important to note that the process of buying property in Belize can be complex, and there are potential pitfalls to avoid. 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 of any liens, judgments, or encumbrances. Additionally, local real estate scams do exist, so buyers should be cautious and take their time when considering a real estate transaction.

Property tax on condos

Belize is an attractive prospect for property investors, with its privacy laws, no-tax system, and English-speaking population. Property tax in Belize is based on the location and value of the property.

Property taxes in Belize are very affordable. A house or condo worth US $250,000 on Ambergris Caye, for example, attracts an annual property tax of under US $375.00. Property taxes on homes and other developed land, even in cities, are low. For example, the property tax on a four-bedroom US-style home is likely to be in the range of $100 to $200.

Property taxes in Belize vary but are between 1% and 1.5% of the value of undeveloped land. Property taxes outside cities are based on land value rather than the developed value of the property, to encourage development.

In Belize City, property tax on both occupied and unoccupied property may not exceed 2% of the market value of the property.

Belize is one of the few countries in the world where foreigners enjoy the same rights as nationals in land ownership and tenure. Condos are a growing part of the real estate market, and the country has modern legislation to handle this kind of property ownership based on the well-recognized strata principle used in first-world jurisdictions.

Condominiums are purchased through a "Strata" title. The Strata Titles Registration Act, Chapter 196, of the Laws of Belize governs the issuance of titles to condominiums in Belize. This act enables developers to construct condominium developments and issue freehold titles to each unit created in those strata developments.

The concept of condominium ownership in Belize is intended to incorporate the economic advantage of cooperative apartment living with the economic advantages of home ownership. These strata developments are most commonly found on the island of San Pedro Ambergris Caye, Hopkins, and Placencia.

The time for completion of a property purchase in Belize is usually 30 to 90 days.

Property tax on mansions

Belize is considered a tax haven, with a simple tax system and a commitment to privacy. Property tax in Belize varies depending on the location of the property. Outside of major cities, property tax is based on the value of the undeveloped land, rather than the developed value of the property, to encourage development. This tax ranges from 1% to 1.5% of the value of the undeveloped land. In cities, property tax is based on the developed value of the property and is levied at 12.5% for occupied properties and 2% for unoccupied properties.

Property taxes in Belize are very affordable, even for mansions. For example, a mansion in the village of Succotz, a village near Belize's western border, has an annual property tax of $8.00. A house or condo worth $250,000 on Ambergris Caye attracts an annual property tax of under $375.00. Property taxes on a four-bedroom, U.S.-style home in a city would likely be in the range of $100 to $200.

Property tax on rural land

Belize is known for its low property taxes, especially in rural areas. Property taxes in Belize vary between 1% and 1.5% of the value of undeveloped land. Outside of cities, property taxes are based on the value of the land rather than the developed value of the property, to encourage development. This means that property taxes on rural land are significantly cheaper than in urban areas. For example, a house or condo worth US $250,000 on Ambergris Caye would attract an annual property tax of under US $375.

In some cases, property taxes in rural areas of Belize can be extremely low. For example, a Washington D.C. employee with a mansion hideout in the village of Succotz, a village near Belize's western border, pays just US $8 per year in property tax.

Property taxes on homes and other developed land, even in cities, are also low. For example, the property tax on a four-bedroom U.S.-style home would likely be in the range of $100 to $200.

In the City of Belmopan, the rate of property tax is set at 2% of the site value as assessed by the Belmopan City Council. On the other hand, the Belize City Council utilises the rate of 2.5% of the assessed value.

Frequently asked questions