Belize: Your Tax Haven for Privacy and Profits

Today, when more governments are snooping on citizens and more courts are seizing property, Belize stands out as one of a dwindling number of safe tax havens where you can still ensure privacy and protect your assets.

In the early 1990s, the government of Belize consulted with professionals in Guernsey and several other top safe havens before drafting legislation that would enable Belize to achieve similar status.

Legislation included the International Business Companies Act, the Trusts Act, and the Offshore Banking Act, all of which have moved Belize to the forefront of the international financial service jurisdictions. Moreover, to attract retirees from other countries, Belize also adopted a "qualified permanent residence law," which allows retirees to enjoy a tax-free lifestyle.
Individuals and companies establishing themselves in Belize are finding a government committed to privacy and a no-tax system. These advantages, combined with an English-speaking population and laws similar to our own, make Belize one of the world's top tax havens--a truly safe locale for your money.

Income Tax in Belize
As a non-national, you will be charged income tax on income you generate in Belize. It's taxed at a rate of 25%. For residents, the first $10,000 in annual income is exempt, but, unfortunately, this exemption does not apply to non-residents. Since 2001, all foreign income is exempt from personal and business tax, as is all pension income. Qualified Retired Persons (QRPs) receive certain tax advantages.

IBCs
Even if you are not a QRP, the laws allow you to avoid income taxes altogether by transferring income and assets (though not real estate) into a Belizean International Business Corporation (IBC). Dividends to you from the IBC are not taxable.

Real Estate Tax in Belize
On the transfer of real estate, everyone in Belize pays a 5% transfer tax; non-citizens pay an additional 5%, for a total of 10%. This is usually paid by the buyer, but is negotiable. If you are a resident under the Qualified Retired Persons incentive program, the 5% on non-citizens is waived.

Property Taxes in Belize
Belize's property taxes vary but are between 1% and 1.5% of the value of the undeveloped land. In Belize, property taxes outside cities are based on land value rather than the developed value of the property, to encourage development. Property taxes on homes and other developed land even in cities are low. For example, the property tax on a four-bedroom U.S.-style home would likely be in the range of $100 to $200. There is no capital gains tax in Belize.

Check with you tax professional beofre making any financial decisions.