Who can buy property in Belize?

In Belize, foreigners have the same property rights as Belizean citizens. You can fully own real estate, including both buildings and land, without restrictions on foreign ownership. The use of English as the official language simplifies the transaction process. Additionally, many international buyers find Belize’s legal system accessible due to its foundation in British common law.

Do the research

Investing in Belize real estate can be highly appealing for several reasons. The country offers a stable political environment and an attractive investment climate, which contributes to a growing real estate market. Belize's natural beauty, including pristine beaches, tropical rainforests, and barrier reefs, makes it a sought-after destination for both tourists and expatriates, driving demand for vacation rentals and second homes. The relatively low property prices compared to other Caribbean destinations provide opportunities for significant appreciation and rental income potential. Belize also has favorable tax incentives for property owners and a straightforward process for foreigners to purchase real estate. With English as the official language and a friendly, welcoming culture, Belize is a compelling choice for those seeking a profitable and enjoyable real estate investment.

Below are some sought-after destinations for real estate investment in Belize:

• Belize City - As the largest city in Belize, Belize City is a prime location for both residential and commercial real estate. Key areas such as the downtown district and the waterfront are particularly popular due to their economic activity, accessibility, and potential for growth.
• Ambergris Caye - This island is favored for its beautiful beaches and vibrant tourism. San Pedro, the main town, is popular for both vacation homes and investment properties, offering stunning views, a lively community, and proximity to the Belize Barrier Reef.
• Placencia - Known for its stunning coastline and relaxed atmosphere, Placencia is a top destination for real estate investment. Its blend of beautiful beaches, charming villages, and strong tourism appeal makes it ideal for both residential and rental properties.
• Cayo District - This inland region is renowned for its lush landscapes and eco-tourism opportunities. Towns like San Ignacio and Belmopan attract those seeking a tranquil lifestyle surrounded by natural beauty, making them popular for eco-friendly retreats and vacation homes.
• Corozal - Located in the northern part of Belize, Corozal is becoming increasingly popular due to its affordability and proximity to the Mexican border. It offers a mix of residential options and commercial opportunities, appealing to those looking for a quieter lifestyle with easy access to nearby amenities.

Where to find properties online:

• https://www.realestate.com.au/international/bz//
• https://www.point2homes.com/
• https://belizerealestatemls.com/

Financing

In Belize, foreign real estate investors have various borrowing options at their disposal. These include commercial banks, smaller local banks, credit unions, and several offshore institutions regulated under the Offshore Banking Act of 1996. Each option varies in terms of loan-to-value ratios, interest rates, and repayment terms, providing a range of choices to accommodate different investment strategies and financial needs.

Due Diligence and Sales Contract 

Conducting thorough due diligence is essential when purchasing real estate in Belize. Engaging a real estate agent or lawyer is crucial, as they can help you navigate legal formalities, verify property ownership, and ensure compliance with all regulations.

In Belize, the property purchase agreement is a mandatory and legally binding contract that outlines the terms and conditions of the property sale between the buyer and the seller. This agreement is typically prepared by a local real estate agent or lawyer. It acts as a formal record of the transaction and is crucial for the transfer of property ownership. Once the Sales Agreement is signed, the buyer generally has 5 to 7 days to provide an earnest deposit, which is typically 10% of the purchase price.

What are the costs like when purchasing a property in Belize?

Footnotes to Transaction Costs Table

The round trip transaction costs include all costs of buying and then re-selling a property - lawyers' fees, notaries' fees, registration fees, taxes, agents' fees, etc.

Stamp Duty:
In Belize, buyers are responsible for paying the Government Stamp Duty on all land transfers. This duty is 8% of the selling price, with the first US$10,000 of the sale exempt from this tax. For Belizean citizens, the stamp duty rate is reduced to 5%.

General Sales Tax
A 12.50% General Sales Tax is imposed on sales of new residential properties.

Legal Fees:
The use of lawyers for property sale and purchase is optional. Legal fees are negotiable but usually fall around 2.00% of the property value.

Real Estate Agent's Fee:
A real estate agent's fee in Belize usually ranges from 4% to 10% of the property's selling price. This commission is typically divided between the buyer and the seller, though it can sometimes be negotiated to be the sole responsibility of the seller.