Persons and companies establishing themselves in Belize are finding a government committed to privacy and a no-tax system. These advantages of Belize , combined with an English-speaking population and laws similar to our own, make Belize together with the Caymans one of the world’s top tax havens.
Income Tax in Belize
As a foreigner (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.
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 lower as in the U.S.
Even if you are not in the Belize Retirement QRP programm, 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.