Belize: Business Paradise

Belize is a great place to start a business, whether you're a local or a foreigner. The country has a small population of around 400,000 people, but it is a major tourist destination, which means that the market is much larger than one might expect. Belize is also conveniently located near the USA, with direct flights from New York, California, Georgia, Florida, and Texas. The country has close sociopolitical and economic ties to both Central America and the Caribbean, allowing it to benefit from trade agreements within both regions.

Belize has a laid-back culture and a productive workforce, with a particularly large agricultural sector contributing almost 11% of its GDP. The country also has a considerable industrial sector, with garments, cleaning products, electrical goods, and processed food being produced in notable quantities. Additionally, Belize has a well-established banking system with strong privacy and security measures.

The country offers a favourable taxation system, with generous tax benefits for foreigners and International Business Companies (IBCs). The official currency in Belize, the Belize dollar (BZD), has been pegged to the US dollar since 1978, providing stability for investors. The minimum wage in Belize is one of the highest in the region, and the cost of living is much lower than in the US and many other countries.

Belize also has a lot of undeveloped land, providing opportunities for those interested in manufacturing or agriculture. The government provides incentives to businesses that contribute to the economy and create jobs for Belizeans, including tax holidays and import/export duty exemptions.

Overall, Belize offers a business-friendly environment, a competitive labour market, and a high quality of life, making it a great choice for investors looking to enter Latin America or the Caribbean.

Stable currency and taxation system

Belize has a stable currency, with the Belize dollar pegged to the US dollar since 1976 at an exchange rate of BZ $2.00 to US $1.00. This provides a favourable environment for businesses, particularly those that rely on trade with the US.

Belize has a territorial tax regime, meaning that corporate income tax is only paid in the oil sector. Other companies pay business tax, calculated as a percentage of revenue. The rate of this "turnover" business tax varies depending on the type of income, from 0.75% to 19%. Belize also has a flat income tax rate of 25%. There is no capital gains tax.

Businesses in Belize must register for the following taxes:

• General Sales Tax (GST): a consumer tax applied at a rate of 12.5% on goods and services in Belize.
• Business Tax: a tax identification number (TIN) and certificate of registration will be issued and must be displayed at the place of business.
• Income and Business Tax: persons carrying on a trade or business earning over BZ $75,000 annually must file a monthly business tax return. Self-employed persons earning BZ $20,000 or more annually must also file a business tax return.
• Social Security Tax: social security covers the health benefits of employed persons in cases of sickness, maternity, or injury. Payments are withheld and paid monthly to the Belize Social Security Board.

English as the official language

Belize is the only English-speaking country in Central America. This has several advantages for doing business in the country.

English is the global language of business, with nearly 2 billion people speaking it worldwide. It is the most widely used language in the world of trade and commerce and is the official language in over 70 countries. As such, proficiency in English has become vital for success in any employee's career. This is especially true for international students seeking better career prospects in English-speaking countries.

English is the lingua franca in almost all developing nations, and as Belize is a developing nation, this is particularly relevant. In today's business-oriented world, English is widely used as the major medium of communication for both small business concerns and large corporate entities. As the primary language of international business, English is often used to bridge communication gaps and facilitate communication between business partners who do not speak the same native language.

English is also the standard official language in certain industries, such as the shipping and airline industries. This means that knowledge of English is a near-mandatory requirement for critical jobs such as airline pilots and naval officers.

Belize's use of English as its official language also has implications for its tourism industry, one of the country's two largest industries. As English is one of the most common languages in the world, it is likely that many tourists visiting Belize will speak English, making it easier for them to navigate the country and interact with local businesses.

Additionally, Belize's proximity to the United States, with direct flights from several major cities, further increases its attractiveness as a tourist destination for English speakers.

In summary, Belize's status as an English-speaking country facilitates communication and collaboration with customers, suppliers, business partners, and other stakeholders, both locally and internationally. It also provides access to a massive potential client base and helps to create a culture of continuous growth and learning within organizations.

Business-friendly environment

Belize is a business-friendly country with a stable and healthy economy. The country has a well-established banking jurisdiction and a favourable taxation system. Here are some reasons why Belize is an ideal place for doing business:

Belize has a business-friendly environment with a simple business setup process. The country offers a 6-step process for business registration, including registering the business name, submitting incorporation documents, acquiring licenses and permits, registering for taxes, and registering with the Belize Social Security Board.

Belize also provides a range of tax benefits and supportive policies for foreign investors and new startups. The country has no exchange controls, allowing unrestricted currency movements. Additionally, Belize offers attractive incentives such as the Export Processing Zones Program, Fiscal Incentives Program, Commercial-Free Zones, and more.

The country's banking system is secure and stable, with high liquidity rates that exceed those of North American banks. Belize's financial institutions offer higher interest rates on certain accounts, and the country imposes no restrictions on foreign investments as long as they comply with local laws.

Belize's official language, English, eliminates language barriers for English speakers, making it easier to navigate the legal system, official processes, and documentation. The country's legal system is based on English common law, making it more accessible and understandable for foreign investors.

Belize also boasts a competitive labour market with affordable wages. The minimum wage is set at BZD 3.30 per hour (USD 1.65 as of 2022), making manual labour and general work very affordable. Even skilled workers' salaries are significantly lower than in the United States or Europe, with competitive rates for software engineers and sales managers.

Belize's geographic location, bordering Mexico and Guatemala, provides good connectivity and access to major markets. The country also has several significant ports, including Belize Port, Big Creek, and Punta Gorda, facilitating trade and transportation.

The country's stable currency, the Belizean dollar (BZD), is pegged to the US dollar at a rate of 2 BZD to 1 USD, offering investors protection from currency volatility. This stable currency, along with tax incentives, a relaxed culture, and a low cost of living, contributes to a high quality of life for foreigners doing business in Belize.

Belize's government actively supports businesses that contribute to the economy and provides jobs for Belizeans. They offer tax holidays and import/export duty exemptions to such companies, making it a business-friendly environment.

Strong privacy and security in the banking system

Belize's banking system is underpinned by a vigilant Central Bank, which enforces strict liquidity levels, maintains ample dollar reserves, and regularly reviews all bank investments. This helps to ensure the security of the country's banking industry.

Belize's banks are required to maintain a 24% liquidity level at all times, meaning that depositors can be confident that their money will be available to them whenever they need it. This also means that bank runs are rare in Belize.

The Central Bank of Belize closely monitors the country's banking industry and enforces strict banking regulations. Investments are audited at least once, and often twice, a year to ensure compliance. Lending criteria are also strict, with banks requiring at least a 50% loan-to-value ratio.

Belize's currency is pegged to the US dollar at an exchange rate of two Belize dollars to one US dollar. To maintain this exchange rate, the country must hold vast dollar reserves, which further enhances the stability and security of its banks.

Belize also has strict banking secrecy laws, which protect the privacy of account holders. While the country has kept up with modern times and joined the fight against tax evasion and money laundering, it remains committed to safeguarding the identity of its international bank account holders.

In addition, Belize offers a range of tax advantages, including no capital gains tax, inheritance tax, or estate tax. It also does not impose taxes on offshore income.

Belize's banking system is designed to provide a complete array of services to both local and international clients. The system consists of two types of licenses: an A-Class unrestricted license and a B-Class restricted license. International financial institutions must have $25 million in capitalization to acquire an A-Class license, while Belize-based institutions only need to maintain $3 million. A-Class license holders can transact any type of offshore banking business through their Belize office without restrictions.

On the other hand, B-Class license holders can only engage in specified offshore banking activities and cannot provide checking or current accounts to their depositors. These banks are exclusively for foreign depositors and have a lower annual license fee of $15,000.

Overall, Belize's banking system offers strong privacy and security for its depositors, making it an attractive destination for those seeking financial security and asset protection.

Low minimum deposits to open bank accounts

Belize is an attractive prospect for businesses, with its proximity to the USA, trade agreements with Central America and the Caribbean, and its largely untapped industries. However, it is a poor country with a small domestic market, and a range of challenges for investors.

One of the benefits of doing business in Belize is the low minimum deposits required to open bank accounts. This is especially true for regular savings accounts, which are ideal for first-time savers, those who plan to use the account for salary deposits, or those saving for a specific purpose. These accounts require a minimum balance of BZ$1000.00 to earn interest, and there is a monthly service charge of $1.50. To open a regular savings account, you will need to fill out an Individual Account Application and provide a valid form of identification (passport and social security card), as well as a recent utility bill (no older than 3 months).

For those seeking a higher interest rate, Term Deposits are also available with a minimum deposit of BZ$5,000.00. These accounts offer the security of a savings account, combined with higher interest rates, and you can choose how to receive your interest payments. If you miss your maturity date, the bank will automatically compound your interest and renew the deposit under the same terms.

Belize also has five international banks, which may be a more suitable option for non-nationals, as they allow you to maintain your account in US dollars.

Frequently asked questions