Belize Tax Advantages
Belize is perhaps known for its touristic charm. It attracts tourists to the tune of 1.4 million each year, making it one of the most desirable destinations in the Central American and Caribbean region. But, the country has also gained increased popularity for another thing: Belize tax advantages. The tax advantages of Belize have drawn in countless foreign investors to this growing Caribbean country, making Belize real estate a high-yield return real estate investment.
While most governments are busy snooping on its citizens and courts seize properties, Belize has withstood the test of time. It is probably one of the few genuine tax havens on the globe that are poised to protect both your assets and privacy.
Belize tax haven status came to light in the early 1990s when the government approach officials in Guernsey in a bid to draft legislation that would guarantee privacy and financial protection to millions of potential investors.
As of this date, Belize has billed several legislations to the effect, including the Trusts Act, the International Business Companies Act (IBCA), and the Offshore Banking Act (OBA). All the legislation have put Belize on the map of international financial service laws. Just recently, the government of Belize put pen on paper on “qualified permanent residence law” that enables certain persons (read: investors and retirees) to live, play, and work tax-free.
Coupled with an English-speaking populace and flexible laws, the following Belize tax advantages make the country one of the globe’s truly safe haven for your top dollars.
Although income tax is levied at 25%, the first $14500 and pension income are exempt for Belize citizens. Of more importance, however, is that you can gain residency after spending 183 days in Belize. Besides, one of the best Belize tax advantages is that it has no capital gains tax, and there’s no graduated scale of taxation.
Belize Real Estate Tax
Property transfer taxes in Belize are low, often around 5% while attorney fees stagger around 2%. You can expect to shell out about 12.5% for closing costs (calculated on total purchase price).
Belize Property Taxes
Yet another one of Belize tax advantages is property tax which charged at a significantly low rate of 1%-1.5% of the land (undeveloped) value. In most Belize areas outside of the cities, the property tax is based on the value of undeveloped land.
You will be glad to know that Belizean laws will allow you to evade income taxes altogether if you transfer your assets and income into IBC. The International Business Corporation. Even better, the IBC dividends are not taxable.