Belize: A Guide To Getting Rich In Paradise

Belize is a small country with a small economy, but it offers a high quality of life and unique opportunities to make money. The country is a tax haven with a simple route to gaining residency, and its official language is English, making it an attractive prospect for expats. The cost of living is generally lower than in North America and Europe, and the exchange rate is easy to use: two Belize Dollars for one US Dollar. However, the cost of living is higher than in some other Caribbean countries, and there is a huge income disparity between rich and poor.

Belize's economy is based on agriculture, tourism, and services. The country's natural beauty, warm climate, and abundance of outdoor activities make it a popular tourist destination, and its strong tourism market means there are plenty of opportunities for expats to make money.

Invest in real estate

Belize's economy is small and primarily based on agriculture, tourism, and services. While it may not be the best place to make millions, it offers a unique opportunity to enjoy a fun and relaxed lifestyle in a Caribbean paradise while making a tidy income.

Here's how you can invest in real estate in Belize:

Understand the Market

Belize offers a wide range of housing options, from basic wooden homes to concrete structures. The cost of construction for a concrete building ranges from $40 to $80 per square foot. The style and location will impact your budget, with areas like San Pedro, Placencia, and Caye Caulker being more expensive due to their popularity among expats and tourists.

Explore Locations

Ambergris Caye, a popular tourist destination, is a 1.5-hour ferry ride or 15-minute flight from Belize City. It offers world-class fishing, diving, and snorkelling opportunities. However, it is one of the more expensive places to live due to rising tourism.

Caye Caulker, a 30-minute ferry ride from Ambergris Caye, offers a more laid-back and quaint lifestyle. Here, you'll find unpaved streets and golf carts instead of cars. Real estate options may be more limited compared to other parts of the country.

Placencia, a 16-mile-long peninsula in southern Belize, has the charm of a fishing village with the convenience of being connected to the mainland. While property costs have increased recently, bargains can still be found, especially if you're willing to compromise on location.

Corozal, located in northern Belize, is a less expensive option and offers both coastal and inland living. It's also just a 30-minute drive to Chetumal, Mexico, where you'll find modern shopping options.

Understand the Legal Requirements

Belize has attractive property rights, and there are no restrictions on foreigners owning land, including waterfront properties. However, be mindful of squatter laws, which allow people to claim land if they've settled on it uninterrupted for 20 years.

Consider Building Options

Belize has a thriving Mennonite community that provides pre-fabricated homes at affordable prices. For $20,000 to $30,000, you can get a three-bedroom cottage with plumbing, polished hardwood flooring, and pre-wired for utilities.

Alternatively, you can consider building your own home, especially if you're looking for something more custom or luxurious. The cost of construction will depend on the materials and location, but it's important to be mindful of the high cost of electricity in Belize.

Generate Income from Your Property

Once you've invested in land, consider building cabanas or condos to rent out on Airbnb for short-term or long-term stays. This can be a great way to generate income and make the most of your property.

Be Mindful of Expenses

While the cost of living in Belize is generally lower than in North America, certain expenses can add up, such as electricity and gasoline. Basic medical care, cable TV, household help, insurance, and produce are more economical. It's important to learn to live like a local and find ways to save, such as shopping at local markets and walking to nearby shops instead of driving.

In conclusion, investing in real estate in Belize offers a unique opportunity to enjoy the Caribbean lifestyle while generating income. By understanding the market, exploring different locations, being mindful of legal requirements and expenses, and generating income from your property, you can make the most of your investment and work towards achieving your financial goals in this tropical paradise.

Start an online business

Starting an online business in Belize can be a great option for entrepreneurs looking to take advantage of the country's tax-friendly environment and growing tourism industry. Here are some detailed steps and instructions to help you get started:

Choose the Right Business Structure

Before registering your online business in Belize, it's important to choose the appropriate business structure that suits your specific needs. The most popular option is the International Business Company (IBC), which offers limited liability and complete tax exemption. Other options include sole proprietorship, public investment companies, limited liability partnerships, and trusts. Each structure has its own advantages and requirements, so be sure to consult with a professional to determine the best fit for your business.

Register Your Business Name and Address

To formalize your online business in Belize, start by registering its name and address. You can do this by submitting an application to the Companies and Corporate Affairs Registry, located in the City of Belmopan. This process costs BZ$25 (approximately US$12.50), and you'll need to provide a valid Social Security card for all owners or partners. It's important to choose a unique name that doesn't contain any insulting or vulgar words and isn't suggestive of government patronage.

Obtain Necessary Licenses

Depending on the nature of your online business, you may need to obtain specific licenses. For example, if you're handling food, you'll need a food handler's license from the Department of Health. If you're in the tourism industry, you may need a liquor license or a hotel/Airbnb license from the Belize Tourist Board. Additionally, all new buildings or those being retrofitted for tourism use will require a Central Building Authority (CBA) permit.

Register for Taxes

Belize has a favourable tax regime, especially for online businesses. While it's a tax haven that doesn't tax foreign earnings, you'll still need to register for relevant taxes. This includes registering with the Income Tax Department and obtaining a Tax Identification Number (TIN). Additionally, if your business will have employees, you'll need to register with the Belize Social Security Board.

Open a Bank Account

To facilitate financial transactions for your online business, you'll need to open a bank account. As a non-resident, you may only be able to open an account with offshore banks until you obtain some form of Belize residency. Heritage Bank and Caye International Bank are popular options. Once you become a legal resident, you can open a personal Belize-dollar account with local banks like Atlantic Bank.

Set Up Your Online Presence

To run a successful online business, you'll need a strong online presence. Consider working with local internet service providers like Central TV & Internet or Computer Ranch to get high-speed internet access. Additionally, you may want to invest in a user-friendly website, social media presence, and digital marketing strategies to reach your target audience effectively.

Stay Compliant

Belize has specific economic substance requirements that businesses must adhere to. These regulations aim to prevent harmful tax practices and create a legitimate business environment. Be sure to familiarise yourself with these requirements and consult with professionals to ensure your online business remains compliant with all applicable laws and regulations.

Starting an online business in Belize can be a rewarding venture, but it's important to carefully navigate the legal and logistical processes. Remember to seek professional advice and stay resilient, as the process may take longer than expected due to various hurdles and bureaucratic delays.

Property management

If you are considering investing in Belizean property, it is important to note that most real estate transactions in Belize are cash sales, and financing is more complex than in domestic markets. However, there are still some opportunities for vendor financing.

Belize is an attractive prospect for investors due to its low property prices, tax incentives, and stable economy. There is no capital gains tax, inheritance tax, or property tax on undeveloped land, and property taxes on developed land are generally low.

If you are looking to rent out your property in Belize, you will first need to obtain a trade license to ensure you are operating legally and paying taxes. You can then decide whether to manage the property yourself or hire a professional property management company.

If you opt for self-management, you will have more control over rental rates and availability, and fees from sites like Airbnb and VRBO will be lower than professional management fees. However, you will need to be on call 24 hours a day and manage all aspects of guest services and maintenance.

On the other hand, professional management companies can handle marketing, bookings, and maintenance for you, but they will charge higher fees. If you choose this route, be sure to research different companies thoroughly and ask other expats for referrals.

Another option is to purchase a property within a complex or building with a homeowner's association, which will often have its own property and rental management services. However, these services may come with restrictions on owner use and may not allow rentals at all.

Before investing in Belizean property, it is essential to do your research and understand the local regulations and potential challenges, such as the prevalence of unlicensed real estate brokers and the lack of title insurance on most transactions.

Work for foreign companies

Belize is a small country with a small economy, so it may not be the best place to seek a high-paying job with a foreign company. However, if you are looking to make a tidy sum of money while enjoying the Caribbean paradise, Belize presents unique opportunities.

The country is home to a well-established expat community, with 90% of businesses being small or micro-businesses. Expats run all types of businesses in Belize, including tourism-related ventures such as restaurants, bars, and B&Bs, as well as yoga studios, health spas, hair salons, vitamin shops, specialty coffee and wine stores, pool supply services, and organic farms.

If you are looking to work for a foreign company in Belize, here are some things to keep in mind:

Work Permit

Firstly, you will need a work permit to work legally in Belize. The fees for a work permit range from as little as BZ$150 up to BZ$3,000, depending on the profession type and the duration of the permit. You don't need a work permit if you are working or consulting online for foreign companies, but if you work for local businesses, it is recommended to obtain one.

Telecommuting

If your job allows you to work remotely, telecommuting from Belize can be a great option. Any income earned outside of Belize will not be taxed, and you can get paid in your native currency, which will likely go further in Belize than in your home country.

Internet Quality

When considering telecommuting, it is important to check the internet quality in your desired location. Internet quality has improved in recent years, especially in urban areas, but occasional power outages may still occur.

Volunteering and Ecological Work

Belize has a diverse range of biodiversity, and volunteering in this field can be a rewarding way to experience the country. You can find accommodation and meals in exchange for your expertise and hard work on farms and other ecological projects.

Visa and Work Permit Requirements

Working in Belize as a foreign citizen is possible, but the government has regulations in place to protect jobs for locals. If you plan to work in Belize, it is advisable to make the necessary arrangements before arriving. There are two types of applications for a Belize work permit:

• Permission to Employ a Foreign Person: This application is filled out by the potential employer or the job seeker. It requires foreign citizens to have legal residency in Belize for a minimum of six months. Once approved, the company will own the work permit, and the individual can only work for that specific company.
• Temporary Self-Employment: This application is for foreigners looking to invest in Belize. It requires legal documentation, such as a visa and other permits, as well as a reference letter from an organization overseeing the category of work to be performed.

Setting Up Your Own Business

Starting your own business in Belize can be a great source of income, and the government offers incentives to entrepreneurs, such as exemptions from import and export duties and various taxes. The Belize Trade and Investment Development Service (BELTRAIDE) assists international and local investors in establishing and developing their businesses.

To set up your own business, you will need to follow certain steps, including registering your business name, incorporating your company, acquiring land, obtaining trade licenses, and registering for taxes.

In conclusion, while Belize may not be the best place to seek a high-paying job with a foreign company, it offers unique opportunities for those looking to work remotely, start their own business, or be self-employed. With its growing economy and expat community, Belize presents a range of options for those seeking to work and enjoy the Caribbean lifestyle.

Open a business in Placencia

Placencia is a popular expat and tourist community in Belize, known for its beachfront living and vibrant village life. If you're thinking of opening a business in this idyllic location, there are a few things to keep in mind.

First, consider the type of business you want to open. Placencia already has a variety of hotels, resorts, restaurants, and tour operations catering to visitors. However, there is a demand for more professional property management services, especially for high-end vacation properties. If you have a boat, you could also consider chartering it out for day trips or longer voyages.

Another option is to invest in real estate. Building with concrete is becoming more popular, and these homes tend to be larger and include amenities like air conditioning. You could build and rent out cabanas or condos, or construct a concrete home to sell or rent out long-term. Keep in mind that proximity to the beach or the town centre will impact your rental income.

If you're more interested in starting a food-based business, there is a demand for boutique bistros and gourmet food options, especially during festivals and national holidays. Organic food production, particularly high-end salad greens and herbs, is also an area of opportunity.

For those with a craftsperson's skill set, Belize's abundant tropical hardwoods could be used to create furniture or art. Alternatively, you could explore opening a bar, spa, or wellness centre, all of which are currently in high demand in Placencia.

When it comes to location, Placencia offers a range of options. A two-bedroom apartment near the beach with air conditioning can range from $1,200 to $1,500 per month. If you're looking to buy land, a beachfront lot can cost between $60,000 and $200,000, while residential lots a few streets back from the beach will be more affordable.

Finally, remember that you will need a work permit to work legally in Belize. Fees for a work permit depend on the profession and duration of the permit, ranging from as little as BZ$150 to BZ$3,000. While it's not a legal requirement, most people find it helpful to get assistance from an agent when applying for a work permit.

Frequently asked questions