Belize: Invest In Paradise

Belize is a vibrant country in Central America with a strong focus on economic growth. It is a popular tourist destination due to its eco-friendly natural resources, year-round tropical climate, extensive coastlines, and stable political and social environment. With English as the official language, it offers a pro-business environment, especially for foreign investors, with full foreign ownership rights and attractive tax incentives. Belize has a skilled and bilingual workforce, mirroring US Central Standard Time, and offering proximity to key US cities with direct flights, making it an ideal location for businesses looking to expand internationally. The country's stable currency, competitive investment programs, and strong government support further enhance its appeal for investors seeking diversification and growth opportunities.

English-speaking

Belize is a great place to invest, especially for English speakers. As a former British colony, English is the official language of Belize, and around 63% of the population speaks it. This makes it easy for English speakers to navigate finding a property, opening a bank account, and registering a business. Belize is also one of the only bilingual countries in Central America and the Caribbean, with a significant portion of the population also speaking Spanish. This bilingualism is a key competitive advantage for Belize, making it attractive for foreign investment.

Belize has a stable political, social, and business environment, and its government strongly supports industry sectors identified as priorities. The country has a hardworking, diverse, friendly, and well-educated workforce. It is also a tax haven, offering tax-free living to qualified retirees from any country in the world. There are no capital gains taxes, and property taxes are low, ranging from 1% to 1.5%. Closing costs are typically around 1%, and transfer taxes are usually 8%, with a portion waived for Belize citizens.

Belize is also a popular tourist destination, known for its eco-friendly, pristine natural resources, year-round tropical climate, and extensive coastlines. This creates an attractive and sustainable climate for niche products and services that add value to nature. The country is easily accessible, with direct flights from several key US cities, and it mirrors the US Central Standard Time (CST) zone.

Belize offers a range of investment opportunities, including tourism, medical tourism, agribusiness, fisheries, aquaculture, light manufacturing, and logistics. The country has a pro-business environment and provides competitive investment incentive programs, such as fiscal incentive programs and skilled labour availability.

For these reasons, investing in Belize is an attractive option for English speakers looking for business opportunities, a peaceful political environment, and tax advantages.

Stable currency

Belize has a stable currency, the Belize Dollar (BZD), which is fixed at a rate of 2:1 against the US Dollar (USD). This means that two Belize dollars are equal to one US dollar. This fixed exchange rate provides stability and predictability for businesses and investors operating in Belize. It also simplifies currency conversion and makes it easier for foreign investors to understand the value of their investments in their own currency.

The history of the Belize Dollar dates back to 1974 when it was first introduced to replace the British Honduras dollar. Belize gained independence in 1981, and the new currency was a reflection of the country's move towards establishing its own unique identity. The Belize Dollar is divided into 100 cents, with denominations of the BZD including banknotes of $2, $5, $10, $20, $50, and $100, as well as coins of 1, 5, 10, 25, and 50 cents, along with $1 coins.

The Central Bank of Belize, established in 1982, plays a crucial role in managing the nation's currency and foreign reserves. It ensures the stability and integrity of the Belize Dollar by carefully controlling the money supply and implementing monetary policies. The bank's efforts have contributed to Belize's low inflation rate, which was estimated at 0.6% in 2019.

Belize's stable currency is a significant advantage for investors, particularly those from the United States. The fixed exchange rate with the US Dollar eliminates the risk of unpredictable currency fluctuations, making it easier for investors to plan and budget for their projects. It also simplifies the process of converting profits made in Belize Dollars back into US Dollars, providing a sense of security and ease of doing business.

Additionally, Belize's currency stability is enhanced by the country's overall stable political, social, and business environment. The country enjoys a peaceful and conflict-free political climate, which further contributes to the reliability and predictability of its currency. This stability is a key factor in attracting foreign investment and boosting investor confidence.

Skilled labour force

Belize has a hardworking, diverse, and well-educated workforce that supports an economy focused on growth. The country boasts a bilingual population, with English being the official language, which is a significant advantage for doing business.

Belize has a skilled and vibrant labour force with an abundant pool of talent. The country's Labour Department is committed to ensuring that the country produces and maintains a highly skilled, competent, agile, and productive workforce. The Labour Department also works with stakeholders on special projects to address issues such as employment rights, social protection, and occupational health and safety.

The Ministry of Rural Transformation, Community Development, Labour, and Local Government has launched an online Employment Services System (ESS) that uses cutting-edge technology to efficiently connect job seekers and employers. This system is designed to be convenient, user-friendly, and secure for both employers and prospective employees.

Belize's stable political, social, and business environment, along with its strong government support for industry sectors, makes it an attractive destination for investors seeking a skilled labour force in a conducive environment.

Tax haven

Belize is a tax haven, offering numerous financial benefits to investors, businesses, and retirees.

Belize has been described as the "last great tax haven on Earth", primarily due to its lack of capital gains taxes. The country also boasts no corporate taxes and minimal property taxes, ranging from 1-1.5% according to one source, and 5% according to another. There is a Value Added Tax (VAT) of 12.5%, but this does not apply to income generated from foreign sources, nor to specific sectors such as finance, pharmaceuticals, and agricultural products.

The country's tax system allows for exemptions, meaning that if income tax surpasses economic activity tax, the excess tax is waived. Belize also offers significant tax reductions for personal and corporate taxes, and there are no fees for transferring assets into the country. Even if you pay yourself dividends from a Belize-based company, you won't be required to pay taxes on that income.

The only taxes of note within the country are minor property taxes for full-time residents and income tax for residents. However, to qualify as a resident, an individual must reside in Belize for at least 183 days a year, and the first $10,000 earned are exempt from income tax.

Belize also offers tax-free living to qualified retirees from any country in the world. The Qualified Retired Persons Incentive Act, which came into effect in 1999, offers official residency and the transport of personal effects, including vehicles. Those covered under this act are not required to pay income taxes on any investments or work interests outside of Belize.

The country's status as a tax haven is further enhanced by its stable political, social, and business environment, and its strong government support for industry sectors identified as priorities. Belize's official language is English, and it is the only Central American and Caribbean country with truly bilingual capabilities (English and Spanish), making it an attractive and accessible option for investors from a variety of countries.

In addition, Belize's banking fees are affordable due to the country's low cost of living compared to other banking destinations. The country also boasts a lack of government intervention into personal finances, and political and banking stability.

Full foreign ownership

Belize is an attractive prospect for foreign investors due to its full foreign ownership laws, stable economy and political climate, and the potential for high returns.

Belize has no restrictions on foreign ownership, meaning non-natives are granted the same rights as native-born Belizeans. This includes the right to own property, with the same land rights as citizens, and 100% ownership of businesses. The country's legal system is based on British Common Law, so it is easily navigable for those familiar with this foundation.

The country's small but stable economy has a fixed exchange rate of BZ$2 = US$1, and the Belizean Dollar is pegged to the US Dollar, minimising currency fluctuations. The government also offers tax incentives for foreign investors, including tax holidays of up to 25 years, depending on the nature of the business. There is also no capital gains tax, meaning profits from the sale of land remain with the seller.

Belize's tourism industry is booming, with an annual growth rate of 14.6% over the last 12 years, and this is a strong investment indicator. The country's stable political environment, English-speaking population, and developing infrastructure also provide some investment opportunities.

However, it is important to note that there are some challenges to investing in Belize, including a small population, a high cost of doing business, high public debt, bureaucratic delays, insufficient infrastructure, and corruption.

Frequently asked questions