Last updated on June 20th, 2024 at 11:02 am

How To Buy Belize Real Estate

This is is one of the few countries in the world where foreigners enjoy the same right as nationals in land ownership and tenure – and land rights on the beach are not difficult to obtain.

A little-known benefit for those wishing to invest in Belize real estate is that there is no Capital Gains Tax. So if you purchase land, then sell it later at a good profit, you pay no Capital Gains Tax – all profits remain with you. Condos are a growing part of the real estate market and the country has modern legislation to handle this kind of property ownership based on the well recognized strata principle used in first world jurisdictions.

Real Estate – Some Basic Tips

Among the many attractions of Belize, none is more important to prospective retirees and expatriates than the relatively low cost of property and housing. For sure you can spend a lot of money on North American-style luxury developments. But you can also buy raw land at prices not seen in the U.S. since the 1960s and in some areas find a simple but pleasant rental house near the sea for under US$200. a month.

Like anywhere in the world, local Belize real estate scams do exist. Be wary of fast-talking real estate brokers, attorneys or anyone making a high pressure pitch. Do not be afraid to walk away or take your own deliberate time on any real estate transaction. Do not be swayed by who the real estate agent is. Many real estate agents in Belize are immigrants from North American who have literally taken over this business from Belizeans. You may understandably feel more comfortable with someone who looks like you, talks like you, and likely is from your own country.

It is recommended that you do all real estate land transactions through a licensed Belize real estate agent or an ethical Belize attorney-at-law. You need to ensure that a Title Search is conducted at the Government Land Registry and that the real estate that you are purchasing is free and clear of all liens, judgments and encumbrances. A title search done through a local attorney should not cost you more than U.S. $250.

Buying Property Through A Real Estate Agent Or Lawyer

One of the best ways to avoid being ripped off and get a better price, is to try and find the owner of the property you are interested in and cut out the middleman. You can do this by scouting the property and talking to neighbors, maybe assisted by your taxi driver. Then hire a recommended Belize attorney or licensed real estate agent to arrange the title search, negotiate and purchase direct from the owner. As with any profession, there are crooked attorneys in Belize. And likewise, sketchy real estate brokers, especially those in the luxury real estate segment. In 2023 a new organisation Belize Real Estate Association (BREA) was established to bring together professional real estate professionals. If you are buying through a Belize Real Estate agent, we suggest checking to see if they are members in good standing of BREA. Also, ask around, get recommendations. Going rates for buying property through a la real estate agent are between 2 and 5 per cent of the property value.

The preferred way of owning real estate is through Title Free and Clear, either as an individual or through a corporate body. The property can be mortgaged with a bank or credit union. Titles Free and Clear, are issued for land and condominiums. Condominiums are purchased through a “Strata” title. Purchasing a property is pretty straightforward – the time for completion is usually 30 to 90 days.

Real Estate Auctions

Real estate foreclosure auctions occur in Belize from time to time, where properties are sold that were put up as collateral for loans from banks or other financial institutions. These auctions are usually advertised in the weekly newspapers of Belize City, and sometimes on television and, foreigners are welcome to participate. While there may not be any particular issues associated with buying at a foreclosure auction, one potential challenge is that local bidders who are more knowledgeable about the property and its value may be present.

In Belize, property owners sometimes remain in possession of the property even at the time of the auction, which can pose a significant problem for buyers trying to take possession of the property. Before investing your money, it is advisable to consult with a real estate attorney who is familiar with the property laws in Belize.

Belize Strata Titles

The Strata Titles Registration Act, Chapter196, of the Laws of Belize governs the issuance of titles to condominiums in Belize. This act enables developers to construct condominium developments in Belize and to issue freehold title to each unit created in those strata developments.

Condominium structures in the Caribbean unlike that in big countries, tend not to be high rise, multistory towers used by nationals as their principal residence, but relatively modest two to four storey buildings, used by vacationing foreign residents. The concept is intended to incorporate the economic advantage of co-operative apartment living with economic advantages of home ownership. These strata developments are most commonly found in the island of San Pedro Ambergris Caye, Hopkins, and Placencia. Newer developments are seeing the rise of larger, luxury condos for the affluent. Some of the owners rent out their condos throughout the year to offset their mortgage to to make a good income.

Upon registration of a Strata Application, the titles of the various units are issued to the Developer in its name. Thereafter, every individual who purchases a unit automatically becomes a member of the Corporation (commonly known in the United States as the “Homeowner’s Association”). The Corporation is then invested with the power and duty to manage, maintain and upkeep the common areas of the Development pursuant to the articles in the registered By-Laws.

Real Estate Financing

Getting a mortgage loan from a bank in Belize to buy or build property can be challenging for non-residents. Therefore, it is advisable to be prepared to pay in cash, secure owner financing, or obtain financing from a non-Belizean financial institution that accepts your assets back home as collateral.

In Belize, it is common to buy land or building lots under an Agreement for Sale or Contract for Deed, where the seller retains title to the property until it is paid in full. This arrangement allows the buyer to purchase the property over time, typically through installment payments.

Most foreigners purchasing real estate pay cash from their own money, or borrow funds in their home countries where interest rates are lower. One advantage of financing your real estate purchase through a local bank is that the bank will have in-house attorneys to protect its loan portfolio. Many banks and financial institutions are willing to provide financing to foreign nationals without any issues. However, it is important to note that each institution has specific requirements that must be met, which is reasonable and expected.

Another option to purchase real estate is through owner financing where the seller provides part financing for the buyer, Conditions are flexible but an owner financed transaction usually sees the buyer putting down 30% cash and the owner finances the balance at rates of between 6 to 8 per cent over a five or ten year period. If you are buying property as an investment or future retirement home, you can hire a property management company to rent out your property when you are out of the country and pretty much have tenants pay for most of the cost of the purchase.

Property Taxes

Property taxes in Belize are very affordable. A house or condo worth U.S. $250,000 on Ambergris Caye for example attracts an annual property tax of under U.S. $375.00. Some wise investors choose to invest in real estate located in rural areas where taxes are ridiculously low.

How low? A Washington D.C. Library of Congress employee known locally as Four Dollar Charlie, recently shared with us his annual Belize property tax return. The annual property tax on his mansion hideout in Succotz – a village near Belize’s western border popular with American expats who do not mind having property in a Maya village as long as it is cheap – runs him U.S. $8.00 per year. No, we are not making this up – Eight U.S. Dollars a year.

Business tax on rental properties attracts a flat 3% rate payable to the Belize Tax Services Department. “If you have monthly receipts from rent, royalties, premiums or any other receipts from real property that is BZ$800. or more, you must pay tax at the rate of 3% per month.” The BTSD is now the main tax authority in Belize consolidating General Sales Tax, Business Tax and Income Tax.

How To Transfer Land In Belize

Do you want to Transfer the Land ownership of a property?

A transfer of land in Belize refers to the legal process of transferring ownership of a parcel of land from one person or entity to another. This process typically involves the registration of the transfer with the Belize Land Registry, which is responsible for maintaining records of land ownership and transactions in the country. A land transfer in Belize is also known as conveyancing and is governed by the Belize Registered Land Act Chapter 194 Laws of Belize. This can be done by anyone who has the patience to deal with crowded public offices at the Lands Department. Or you can hire someone to do it for you. Click here to download and print Belize Land Transfer Form. The transfer of land in Belize involves several steps, including:

  1. Negotiating the terms of the transfer (in the event of a sale): The buyer and seller must agree on the terms of the transfer, including the purchase price, payment terms, and any conditions or contingencies.
  2. Preparing the transfer documents: The transfer documents must be prepared, which typically include a transfer of title document, a deed of conveyance, and other supporting documents such as a land survey, proof of payment of property taxes, and verification of title search.
  3. Executing the transfer documents: The buyer and seller must sign the transfer documents in the presence of a witness, who must also sign the documents.
  4. Registering the transfer: The transfer documents must be submitted to the Belize Land Registry for registration. The Land Registry will review the documents to ensure that they comply with the relevant laws and regulations and will then update the land register to reflect the change in ownership.
    Once the transfer is registered, the buyer becomes the new land owner and is responsible for paying property taxes, maintaining the property, and complying with any other legal requirements related to land ownership in Belize.

How To Rent Property In Belize

Renting property in Belize is a definite option before making a decision to purchase property here. This can give the prospective expat or retiree time to experience Belize for a few months or a year to decide whether this country is for them. Please see our How To Rent Property In Belize article.