Belize: Overview

RENTAL YIELDS

Relatively cheap houses in Belize

Despite the recent price surge, Belizean properties are still cheap compared to the rest of the Caribbean. Prices of beachfront houses in Ambergris Caye are around US$2,000 - US$2,200 per sq. m. A 250-sq. m house sells at around US$550,000.

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TAXES AND COSTS

Belize has low income tax, but high property tax

Rental Income: Rental income is considered as business income, and is taxed gross at a flat rate of 3%. There is no capital gains or inheritance tax.

Property Tax: Property tax is levied between 1% and 1.5% of the property value.

Residents: Residents and non-residents alike are taxed at the same business income tax rate.

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BUYING GUIDE

Buying costs are moderate in Belize

Roundtrip transaction costs are around 14% to 19% of the property value. The stamp duty is 5% with the first BZD20,000 tax-exempt. Real estatae broker's commission is typically 7% for houses and 10% for land.

Sale of new properties is subject to 10% General Sales Tax.

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LANDLORD AND TENANT

Belize's rental law is pro-landlord

Rent: The initial rent can freely negotiated. The Rent Restriction Act, however, limits rent increases to 10% annually or at a level mandated by the district Rent Assessment Board.

Tenant Security: Non-payment of rent and sub-letting without the landlord’s knowledge are grounds for eviction. Landlords, through a court order, can forcibly enter to reclaim the property from tenants, and claim compensation for damages and unpaid rent.

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ECONOMIC GROWTH

Caribbean paradise in mainland America

Physically, Belize is in Central America but has more in common with the Caribbean despite its dominant second language being English, not Spanish or Portuguese. Formerly known as British Honduras, it is UK’s last colony on American mainland. It has a population of 266,000 and GDP per capita of US$4,141.

It has great dive sites and beautiful beaches. The economy has experienced strong growth since 1996, with 6.4% growth per year from 2000 to 2005, though 2.7% GDP growth is expected this year. Tourism, fisheries, agriculture, and manufacturing dominate the economy.

There were 1,082,300 visitors in 2004, of which 230,850 stayed over.The number of visitors to Belize increased 43% per year between 2000 and 2004, though stay-overs increased only 5% p.a..