This is one of the few countries in the world where foreigners enjoy the same right as nationals in land ownership. Belizeans and foreigners alike can now obtain Fee Simple Title, absolute ownership. It is the most complete form of ownership. Condominiums can be purchased through a “Strata Title.” Closing cost normally is 1 – 2% of purchase price depending if you use a lawyer or a land facilitator. All land purchases are subject to a Government Stamp Transfer Tax at 8% of the purchase price, with the first $20,000.00 exempted.
In addition to the great quality of life Belize offers great investment incentives. We are known to be a tax shelter. A little-known benefit for those wishing to invest in real estate is that there is no Capital Gains Tax or inheritance Tax. So if you purchase land, and then sell it later at a good profit, you pay no Capital Gains Tax – all profits remain with you. Property taxes are low and priced based upon the size of the land and not the value of the home. In the popular areas like Ambergis Caye and Placencia Peninsula, property taxes are a bit higher but still less than $250 USD a year. In the rural areas it can be low as $5 USD a year.
Here are some other important points:
- Be it the developer or the investor, both are subject to Speculation Tax when it comes to large plots of undeveloped land. This tax is based on 5% of the undeveloped value of the property.
- In matters of title transfer, transfer tax is charged being considered as an essential part of the buying process. Values under $10,000 have no tax but values that exceed the amount have 5% tax.
- A liberal residency program known as QRP makes Belize different from every other nation. Owing to this program, people of age 45 or above are allowed to reside in the country without paying income tax or customs duties on personal property that includes vehicles too.
- Being the only English speaking country in Central America, residents are free from worrying about the translated documents.