FAQ: Can Foreigners own property in Belize?
FOREIGN OWNERSHIP
PROPERTY EXCHANGE OR TRANSFER
When properties are sold or exchanged, the Department of Natural Resources charges a certain percentage per transaction.
Purchase of Land by Non-Belizean -
- Non-Belizean pays 8% of the Selling Consideration as a Stamp Duty or Transfer Tax to the Government of Belize in which the first $10,000 USD of the sale cost is tax free.
- Registration and fees are nominal - $7.50 USD
- Lawyer's Fee for Legal Services for Conveying property is approximately 1-2% of Selling price.
- Closing cost for a Non-Belizean is between 11and 13% of the selling cost.
Purchasing of Land by Belizean -
- Belizeans & CARICOM Nationals pay 5% of the Selling Consideration as a Stamp Duty or Transfer Tax to the Government of Belize in which the first $10,000 USD of the sale cost is tax free.
- Registration and fees are $15.00BZ.
- Lawyer's Fee for Legal Services for Conveying property is approximately 1-2% of Selling consideration.
- Approximate closing cost for of Belizeans is between 6 and 8% of the selling cost.
ATTORNEY FEES
Attorney fees start at roughly 2% of the sale price. In most cases the attorney are contracted to provide the deeds and contracts for the property transactions. Click Here to view Belize Attorney/ Lawyer
OTHER FEES
- registration fees
- recording fee
- registrar general's fee
- fees for the publishing notices in the Government Gazette.
There is no capital gains tax or inheritance tax in Belize.
TAXES
When real estate is sold a land transfer tax is levied on the transaction. It is usually the purchaser who pays the tax however, both the purchaser and the owner can agree to share a percentage, though is not the normal case.
PROPERTY TAXES
Property taxes are between 1-1.5% of the set value of the land and made by the Department of Natural Resources. Taxes are collected on the 1st of April of each year. Generally, property tax is very low in Belize.
SPECULATION TAX
The Speculation tax was implemented in 2002. The tax is levied at 5% of the undeveloped value of the land set by the Department of Natural Resources, and applies to property 300 acres and more. This is to discourage speculation on large tracts of land and is meant to encourage development.
TAX HOLIDAYS
The Belize Government grants tax holidays and other concessions to encourage both local and foreign investment in Belize. Under the Fiscal Incentives Act of 1990, tax holidays can be up to 25 years depending on the nature of the business and how much of it is locally owned. Buy Belize Real Estate will organize meetings with the Prime Minister or Minister of Tourism where necessary.
Foreign investors may repatriate 100% of their investments and profits provided that they register all foreign exchange brought into the country with the Central Bank. The Central Bank will require that you send audited financial statements annually to their offices. A minimum of $250,000.00 BZD must be invested so as to qualify for tax concessions in the country. All applications must be submitted to the Ministry of Economic Development. Again we will provide these services for you.