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Tax and Offshore Investment in Belize
Tax regimes vary greatly throughout Latin America. While some countries are investor friendly, others are not so open. There are several benefits (i.e. retirement programmes, tax discounts) but also some tax obligations. In this section we provide an analysis of the different tax structure in each country where January First Real Estate lists properties. This information may be very important for you to choose you retirement destination or where to invest. Keep in mind that there are related visa and residence issues which are discussed in Visa/Residence Requirements. In case you need more information or have doubts on any of these issues, the specialised staff in January First Real Estate will be glad to answer all your questions, click here.
Real estate assets are, without doubts, one of the most secure and profitable ways of investment. There are two main reasons for this:
- Properties always tend to increase their value in the long term.
- They generate an income for their exploitation (rental/yields).
International real estate is set to be the biggest and best investment market of the next several years.
Taxes and Costs in Belize
Taxes and Costs
Business Tax
Non-residents receiving rental income pay business tax at a rate of 3% on the gross rental income.
Property Tax
Property taxes are levied on actual rental income of the property (if it is rented out) or on the assessed rental values, which are likely to be underestimated by the authorities. The tax is levied at 9% for occupied properties located in urban areas but the tax rate varies between 2% to 9% in other municipalities.
Capital Gains Tax
There is no capital gains tax in Belize.
Belize: Taxes and Costs
Business Tax
Non-residents receiving rental income pay business tax at a rate of 3% on the gross rental income.
Property Tax
Property taxes are levied on actual rental income of the property (if it is rented out) or on the assessed rental values, which are likely to be underestimated by the authorities. The tax is levied at 9% for occupied properties located in urban areas but the tax rate varies between 2% to 9% in other municipalities.
Capital Gains Tax
There is no capital gains tax in Belize.
Living There
Residents are taxed at a flat rate of 25% on their employment income. Residents enjoy a basic deduction of BZD19,600 (US$9,561) on income tax, unlike non-residents.
Residents engaged in business in Belize are charged business tax, depending on the nature of their income:
Income Tax Schedule
Nature of Income / Tax Rate
Trade or Business / 1.25%
Professional Services / 4%
Royalties / 5%
Rental Income / 1.5%
Deductions
An annual deduction of BZD 54,000 (US$ 26,341) in receipts is permitted to individuals in trade, business and profession. For those whose sole source of income is rent, the monthly allowance is BZD 1,650 (US$ 805).
Annual earnings from employment, interest on savings, and contributions to charitable institutions of up to BZD30,000 (US$14,634) are also deductible from the taxable income.
Residents pay only 5% stamp duty when purchasing property.
Belize, make your dream investment come true. |
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