Belize: Business Opportunities For Expats

Belize is a small Central American country with a population of around 350,000-400,000. It is a major tourist destination, with direct flights from several U.S. states, and its official language is English. The country has a very laid-back culture and a diverse population. While it has a developing economy, there are many business opportunities in Belize, particularly in the tourism and agriculture sectors.

Tourism, accommodation, and entertainment

With its pristine beaches, lush rainforests, and diverse culture, Belize offers a unique and attractive destination for tourists seeking sun, nature, and adventure. As such, starting a business in the tourism, accommodation, and entertainment sector is a great option for entrepreneurs looking to establish themselves in Belize.

One idea is to offer specialized tour packages that showcase the country's natural and cultural highlights. This could include guided trips to Maya ruins, snorkeling or diving excursions to the Belize Barrier Reef, or nature tours of the country's abundant wildlife sanctuaries and national parks. Entrepreneurs could also consider offering unique experiences such as bird-watching tours, chocolate-making workshops (using Belize's famous cacao), or cultural immersion trips that highlight the country's diverse ethnic groups and traditions.

Accommodation options are also in high demand in Belize, particularly those that offer a unique or eco-friendly twist. Boutique hotels, eco-lodges, and vacation rentals are all popular choices for visitors. Entrepreneurs could consider restoring a historic building or constructing an eco-friendly resort using local materials and sustainable practices. Adding personal touches, such as offering customized tour packages or providing locally sourced meals, can also help to create a memorable guest experience.

Entertainment venues and activities are another area of focus. Belize has a vibrant cultural scene, and there is a demand for unique dining, nightlife, and entertainment options. Opening a restaurant, bar, or cultural performance venue could be a successful venture, particularly in popular tourist destinations such as San Pedro, Caye Caulker, or Placencia. Entrepreneurs could also consider organizing and hosting cultural events, food festivals, or music and art performances, providing both entertainment for visitors and a potential source of income for local artists and businesses.

Additionally, there is a growing trend towards health and wellness tourism. Belize's natural environment lends itself well to this, and entrepreneurs could consider opening a wellness retreat offering yoga, meditation, or natural healing practices. The country's abundant natural beauty also makes it an ideal location for outdoor adventure camps or team-building workshops, which could attract corporate groups or adventure-seeking travelers.

By focusing on the tourism, accommodation, and entertainment sector, entrepreneurs can tap into the natural attractions and cultural richness that make Belize a desirable destination. With a unique, personalized, and sustainable approach, businesses in this sector have the potential to thrive and contribute to the country's growing reputation as a must-visit destination.

Agriculture

Belize's agricultural industry is one of its biggest, with 60% of the country made up of forest vegetation and 20% of its land being arable. The country's favourable weather conditions have made it suitable for a wide range of crops, including bananas, plantains, sugarcane, citrus fruits, rice, and papaya.

Additionally, you can also set up agro-allied industrial cottages, which process farm inputs and transform them into finished and semi-finished products for the international export market. With the high demand for agricultural products and the favourable domestic conditions in Belize, investing in the country's agricultural industry can be a wise business decision.

Consultancy services

Belize is a great place to start a business, whether large or small. The country is a major tourist destination, attracting many visitors from the USA, which is easily accessible via direct flights from several US states. The official language of Belize is English/Kriol, although most locals also speak Spanish, and the country benefits from trade agreements with Central America and the Caribbean.

Belize has a lot of untapped potential for new industries as it is still a developing nation. The government provides incentives for businesses that contribute to the economy and provide jobs for Belizeans, including tax holidays and import/export duty exemptions. There is also a lot of undeveloped land, which is ideal for those looking to start a business in manufacturing or agriculture.

If you are considering starting a consultancy business in Belize, there are a few things to keep in mind. Firstly, internet connectivity in Belize is about three years behind that of the United States. This may impact the type of consultancy business you start, as video conferencing can be challenging. However, Skype voice and WhatsApp video chat work well, so online consulting services are still possible.

It is also important to note that Belize is strict about its employment laws. Anyone wishing to generate an income in Belize must obtain a work permit, and the costs of this can vary. It is recommended to consult a local lawyer to determine the best type of permit for your needs. As a non-national, you will need to reside in the country for at least six months to a year or apply for permission from the Central Bank of Belize to open a local bank account. International banks are more straightforward and allow you to maintain your account in US dollars.

There are several types of consultancy businesses that could be successful in Belize. These include:

• Research and development
• Advertising and public relations
• Consulting services, such as economic, scientific, environmental, technological, managerial, marketing, human resources, computer, and auditing
• Creative industries
• Architectural and engineering services
• Professional services such as legal, tax, and accounting
• Centralized management services
• Data processing
• Software development

When starting a consultancy business in Belize, it is essential to be aware of the local business culture. Belize has a very laid-back culture, and people tend to operate on "Belize time," which means things may take a little longer than average. The approach to business is also more casual, so suits are not necessary.

In summary, starting a consultancy business in Belize can be a rewarding venture, but it is important to be aware of the potential challenges and seek professional guidance where needed.

Real estate

Belize's property market has been growing strongly, fuelled by a surge in tourist arrivals. There are no restrictions on foreigners purchasing real estate in Belize, and the country's status as the only English-speaking Central American nation makes it an attractive destination for tourists, retirees, and second-home buyers from the UK and North America.

The average price for luxury homes in Belize is less than US$1 million, well below the US$2 million average price of luxury homes in other Caribbean destinations. The most popular areas for foreign homebuyers are Ambergris Caye and Placencia. Ambergris Caye has the most expensive housing in Belize, with two- to four-bedroom oceanfront houses costing around US$1 million, while oceanfront condominium units are priced at about US$500,000. Inland homes are valued substantially less, typically priced at around US$200,000.

In Placencia, a thin, twisted peninsula in southern Belize, one- to two-bedroom oceanfront condominium units are priced between US$200,000 and US$500,000. In the Cayo District, property prices have risen by about 5% to 7% annually over the past five years, with homes in San Ignacio ranging from US$85 to US$125 per square foot.

Residential rents in Belize are surprisingly low. The average rent for a one-bedroom apartment in the city centre is US$350 per month, while three-bedroom apartments are offered for around US$600 per month. Rents for apartments outside the city are about 25% to 35% lower.

Belize's real estate market is expected to continue growing, supported by the government's efforts to introduce additional flights and cruise ships into the country. Several hotels and residential projects are under construction to accommodate increased tourist arrivals and property demand.

If you're considering entering the real estate market in Belize, it's important to be aware of the challenges. Belize is a poor country, and investors may encounter obstacles such as high telephone and internet access fees, erratic electricity supply, and a tedious process for applying for land. Additionally, the country's small domestic market, inefficient distribution and marketing systems, and heavy-handed government red tape can make it difficult for entrepreneurs to achieve great success.

It is recommended to hire a competent accountant or attorney to help navigate the process of starting a business in Belize and to determine the best corporate, accounting, and tax structure for your venture.

Manufacturing and trading companies

Belize has two key economic elements that make it an attractive prospect for manufacturing and trading companies: free zones and offshore locations.

Free zones are areas where production and processing costs are low compared to neighbouring countries. Operating within these zones also means that import and export licenses are not required, and businesses are exempt from a range of taxes, including export duties, property tax, excise tax, and capital gains tax.

Offshore locations are easy and accessible places to open a company in Belize. Benefits include a short set-up time, low start-up and management costs, and tax exemptions from duty payments and income taxes.

Belize is also a tax haven, not taxing people on foreign earnings, and U.S. citizens can take advantage of the Foreign Earned Income Exclusion, allowing them to earn $112,000 tax-free in the coming tax year.

However, it is worth noting that the World Bank ranks Belize 152nd out of 183 economies for ease of starting a business. There are also issues with telephone and internet access fees, which are extremely high, and an erratic electricity supply. Applying for land can also be a tedious process.

To start a business in Belize, you will need to:

• Develop a business plan
• Register your business name and incorporate your company
• Acquire land and any necessary development/building permits
• Obtain a trade license
• Register for taxes

Frequently asked questions