Belize: A Tropical Paradise For A Good Life

Belize is a small country in Central America, nestled in the corner of Mexico's Yucatan Peninsula. It is known for its stunning natural beauty, including pristine cayes (islands) surrounded by turquoise seawater, lush jungles, and Maya ruins. As a former British colony, Belize has English as its official language, making it attractive to expats from English-speaking countries.

Life in Belize offers a range of pros and cons. On the positive side, the country boasts a low cost of living, friendly locals, a slow-paced lifestyle, and a variety of leisure activities. The Belizean government also offers tax advantages and residency programs for retirees. However, there are concerns about high crime rates, limited access to quality healthcare, poor road conditions, extreme humidity, and the occasional hurricane.

Overall, Belize can be a wonderful place to live or retire, especially for those seeking a tropical paradise with a laid-back atmosphere and a lower cost of living compared to their home countries.

Belize's Pros and Cons

Belize is a small country in Central America, formerly a British colony, that has become an increasingly popular retirement destination for expats. It is known for its stunning natural beauty, friendly people, and laid-back lifestyle. However, like anywhere, there are pros and cons to consider before relocating.

Pros:

• Adventure and Leisure: Belize offers a diverse range of activities, from snorkelling and diving to exploring ancient Maya ruins and rainforests.
• English as a National Language: As a former British colony, English is the official language, making communication and transition easier for expats.
• Friendly Locals: Belize is known for its warm and welcoming people, with a diverse mix of cultures, including Spanish, Mayan, Garifuna, and more.
• Low Cost of Living: While not the cheapest place to live, Belize offers a lower cost of living than the US, particularly in areas like healthcare, cable TV, household help, insurance, and property taxes.
• Healthy Lifestyle: Belize's abundance of fresh produce and outdoor activities can contribute to a healthier lifestyle, reducing stress and improving overall well-being.
• Tax Advantages: Belize offers tax advantages for retirees and expats, including tax exemptions on the first $10,000 earned and the possibility of avoiding taxes by transferring assets to a Belizean International Business Corporation.
• Affordable Housing: Housing in Belize is generally more affordable than in the US, with options ranging from renting for around $200 per month to buying a three-bedroom house for $20,000.

Cons:

• Crime: Belize has a high crime rate, particularly in some areas, including violent crimes and petty theft.
• Limited Healthcare: Access to quality healthcare is limited, especially in rural areas. For more advanced medical treatment, expats often travel to neighbouring countries like Mexico or Panama.
• Poor Infrastructure: Belize struggles with poor road conditions and frequent power and water outages.
• High Utility Costs: While food and housing are reasonably priced, utilities like internet, mobile service, gas, and electricity are more expensive than in the US.
• Hurricanes: Belize is prone to hurricanes, which can be a concern for residents, and additional insurance coverage is necessary.
• Lengthy Residency Process: Obtaining permanent residency in Belize can be a lengthy and costly process, and earning residency through investment requires a minimum investment of $250,000.
• Import Taxes: Import taxes on goods and vehicles can be high, making imported items more expensive.

Overall, Belize offers a unique blend of natural beauty, cultural diversity, and a relaxed lifestyle. However, it is important to carefully consider both the pros and cons before making the move to ensure it aligns with your personal needs and priorities.

Belize's Tax Advantages

Belize is considered a tax haven, allowing individuals and corporations to legally reduce their tax liabilities. Here are some of the tax advantages that Belize offers:

Tax-Free Income and Assets:

Belize has a territorial tax system, meaning individuals are taxed only on income earned within the country. Under the Qualified Retired Persons (QRP) program, residents can enjoy tax exemptions on the first $10,000 to $14,500 of their annual income. Additionally, individuals can avoid income taxes by transferring income and assets (except real estate) into a Belizean International Business Corporation (IBC). Dividends received from the IBC are also tax-free.

Simple and Attractive Company Incorporation:

Belize's International Business Companies Act (IBCA) makes it simple and fast to incorporate offshore companies. This helps individuals and companies manage their assets and provides protection from taxation on foreign earnings. The incorporation process can be completed within a few hours, granting tax-free status with no reporting requirements.

Confidentiality and Privacy:

Belize does not share information with international taxing authorities, providing corporations and individuals with confidentiality. Banking regulations protect the privacy of companies, foundations, and trusts incorporated in the country. Additionally, Belize places no restrictions on currency movements, allowing for unlimited transfers without reporting requirements.

No Capital Gains Tax:

Belize currently has no capital gains tax, making it attractive for those looking to reduce their tax liabilities on investments.

Low Property Taxes:

Property taxes in Belize are relatively low, ranging from 1% to 1.5% of the value of undeveloped land. For homes and developed land, property taxes are significantly lower than in many other countries, often ranging from $100 to $200 per year.

No Wealth or Inheritance Tax:

Belize does not impose a wealth tax on individuals. Additionally, there is no inheritance tax in Belize, making it an attractive option for those looking to pass on their wealth to the next generation.

Belize's Cost of Living

Belize has a low cost of living, although it is not the cheapest of the Caribbean countries. The cost of living in Belize is tempered by the low cost of fresh produce locally grown by Belizean farmers.

The cost of utilities, such as electricity, is high, but this can be mitigated by living like a local. This means eating the same locally-produced foods, using public transport, and living in a Belizean-style home with ceiling fans and open windows.

The cost of housing varies depending on style and location. A basic, Belizean-style wooden home will be the most economical option, whereas a concrete home will be more expensive. A three-bedroom house can be purchased for around $20,000, and renting costs around $200 per month.

Food is also quite cheap, especially if you eat like a local. Belize's national dish is stewed chicken, rice, and beans, which can be purchased for $6 to $8 at roadside stands. However, eating out in tourist areas can be expensive, with dinner costing $15 to $25.

Other costs to consider include healthcare, which is generally cheaper than in the US, and education, which can be free in public schools but expensive in international schools.

Overall, it is possible to live comfortably in Belize on a fraction of the budget required in the US.

Belize's Healthcare

The Ministry of Health (MoH) is the government agency responsible for overseeing the entire health sector and is also the largest provider of public health services in Belize. The MoH offers affordable care to a majority of Belizeans with a strong focus on providing quality healthcare through a range of public programs and institutions. The private health sector, on the other hand, provides care to a smaller portion of the population but at a relatively low cost and with a similar emphasis on quality.

There are only eight major public hospitals and around 60 public clinics in Belize, which remain underfunded, understaffed, and under-supplied. Despite this, the country has dedicated, caring doctors who offer personal attention to their patients. The majority of the country's 24/7 hospitals are located in Belize City, including the Karl Heusner public hospital, and two excellent private hospitals: Belize Medical Associates and Healthcare Partners. The towns of San Ignacio, Corozal, Dangriga, and Punta Gorda also have 24-hour care hospitals.

Public hospitals and clinics provide very low-cost and almost free healthcare services, but this often results in long waiting queues. A Belize Health Information System card (BHIS) is mandatory for anyone seeking treatment in a public healthcare facility, including expats. As an expat, you are liable to pay for all medical costs incurred at public or private facilities. The standard of healthcare across the country is generally low, and for more complicated types of medical treatment, many expats leave Belize.

The private health sector has grown in recent years, especially in urban areas, and offers comprehensive coverage, including secondary and tertiary healthcare facilities. However, it continues to be expensive.

There is a shortage of medical professionals in Belize, with many doctors and medical professionals being foreign nationals working as volunteers. This shortage is especially evident in rural areas, where emergency services are limited or non-existent.

Recommendations for Expats

• It is recommended that expats opt for comprehensive international health insurance before arriving in Belize, including coverage for repatriation costs and the cost of air ambulance services.
• Foreign nationals should ensure their vaccinations are up to date before travelling to Belize, to protect themselves from potential diseases such as malaria.

Belize's Safety

Belize is a beautiful country with a lot to offer, from its stunning Caribbean seascape to its lush, wild jungles. However, it's important to consider safety when planning a trip or move to this Central American country. Here are some key points about safety in Belize:

Crime

Belize has a high crime rate, including violent crimes such as homicides, assaults, and robberies. While tourists are not usually the target of violent crimes, crimes in tourist areas have been increasing due to the disparity between rich and poor. Petty theft and pickpocketing are common, especially in popular tourist destinations like San Pedro and Caye Caulker. To stay safe, it's important to be vigilant, avoid secluded areas, and not wear valuable items or display wealth.

Belize City, the former capital, has a particularly high crime rate, with gang conflicts and shootings occurring frequently. It is recommended to avoid the north side of Belize City and any areas at night. Other areas considered unsafe due to gang activity are those north of Belize City and border zones, especially along the western border with Guatemala.

Health and Healthcare

Belize has limited access to quality medical care, and advanced medical treatment is very limited outside of Belize City. While there are some private hospitals and clinics in tourist areas, serious medical issues may require travel to neighbouring countries like Mexico or Panama. Expats often mention the lack of amenities and the poor condition of roads, which can make travel difficult in the event of a medical emergency.

Natural Disasters

Belize is prone to natural disasters such as hurricanes, and it's important to stay informed about warnings during hurricane season.

Despite these concerns, many expats report feeling safe in Belize, especially in areas with a large expat population, such as Corozal. Taking common-sense precautions, such as joining neighbourhood watch schemes, installing security measures, and being aware of your surroundings, can help ensure a safe and enjoyable experience in Belize.

Frequently asked questions