Why buy property in Belize?
There are many advantages to considering land, condos, and houses for sale in Belize. Some benefits to buying internationally in the country include the following.
Full ownership
As previously mentioned, you receive the same rights as citizens when you buy Belize property, making the country unique among Caribbean and Central American nations.
Many other countries in the region limit the rights of foreigners who purchase property. Laws may dictate where you can buy or place caps on the acreage you’re eligible to purchase. Some countries also require foreigners to buy real estate through a complicated trust or lease property they wish to buy from the government rather than owning it outright.
Choosing to purchase property for sale in Belize means you will own your home, condo, or land, and you can buy in the region you prefer.
Simple process
The buying and selling of property in Belize is loosely regulated. As a result, the process is simple from an administrative standpoint.
Foreigners don’t need to go through a lot of red tape to purchase properties for sale in Belize. Laws don’t even require you to be present in the country to complete the sale so you can handle things remotely.
Low ongoing costs
Compared to the U.S., the cost of living in Costa Rica is 55% less. Overall, the U.S. is the 5th most expensive place to live in the world, while Costa Rica ranks 73rd.
The difference in the cost of living means that the ongoing costs of owning condos and houses in Belize are less than you’d likely pay to have a rental property in the U.S. You’ll pay less for services like housekeeping, repairs, and maintenance. Insurance tends to be cheaper as well.
Low property taxes
In Belize, property taxes vary based on where you purchase property, but they’re generally lower than in the U.S. For example, if you own unoccupied San Pedro, Belize, real estate worth more than $300, you’re assessed a 2% tax. The tax rate for an occupied rental property in the city is 12.5%.
No language barrier
Belize is a former colony of the UK, and English remains its official language. The lack of a language barrier can make finding and purchasing real estate for sale in Belize easier.
Potential for vacation rental income
One of the biggest reasons people buy real estate abroad is to gain extra income through vacation rentals, and Belize is a top destination for tourists in Central America.
Over the last decade, Belize has begun many initiatives to encourage tourism. One example is the introduction of a digital nomad visa that allows remote workers to live in the country for up to 180 days.
The efforts spearheaded by the Belize Tourism Board have led to the number of international overnight visitors steadily rising. In May 2023 alone, 32,871 foreigners traveled to Belize, nearly three-quarters of whom were Americans. From 2021 to 2022, international visitors increased by 69.2%.
Due to the growing interest in vacationing in the country, there is a great potential for earning income if you consider Belize houses for sale in popular tourist areas.
Streamlined immigration process
People who purchase land, homes, and condos for sale in Belize can enjoy a simplified immigration process if they wish to relocate to the country permanently or temporarily. By providing a title for a property worth at least BZ$500,000 (approximately US$248,000), you can typically qualify for a temporary residency visa.
Fees
When you purchase a home in Belize, you’ll be responsible for paying some costs upfront, including:
- Deposit: You’ll typically need to make a down payment of 10% of the property’s purchase price. On expensive luxury homes, the down payment percentage may be smaller.
- Registration fees: Usually, the government of Belize requires buyers to obtain a land certificate and a deed of conveyance. The cost for both is around US$24.
- Closing costs: You can expect to pay about 1 to 2% of the purchase price in closing costs for title searches and transferring and filing documents.
- Additional fees: In some cases, you may be subject to additional fees for other things like wiring money, converting foreign currency to Belizean dollars, and having the title for the home mailed to you. The amount of these fees varies but will usually be under US$100.
Taxes
When you close on a property in Belize, you’ll need to pay a tax called a stamp duty to the government. The first US$10,000 of the purchase price is exempt from the tax, and there is an 8% tax on the remaining value. For example, if you buy a home worth US$100,000, you’d pay an 8% tax on US$90,000, which comes out to US$7,200.
As previously mentioned, you’ll also need to pay property taxes on your home or condo. How much you’ll pay will depend on the location and whether you’re using the property as a residence, a personal vacation home, or a rental property.
Insurance
In Belize, people who own rental property typically buy all-perils insurance, which covers losses due to rental damages, hurricanes, floods, and fires.
The cost of insurance depends on the value of the home. Some insurers charge $8 for every $1,000 of a concrete home’s value and $30 for every $1,000 of a wood home’s value, but other insurance companies have different ways of calculating premiums.
To get the best possible deal, it’s a good idea to obtain quotes from more than one insurer prior to purchasing property in Belize.