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Belize
We have a team of experienced professionals dedicated to supporting all your business requirements—ensuring smooth operations and full regulatory compliance. This strong foundation enables you to confidently establish and grow your business in Belize with efficiency and assurance.
WHY BELIZE?
Belize is a country on the north-eastern coast of Central America. It is bordered by Mexico to the north, the Caribbean Sea to the east, and Guatemala to the west and south. It also shares a maritime boundary with Honduras to the southeast. Part of the Caribbean region, Belize is a member of the Caribbean Community (CARICOM) and the Commonwealth Caribbean, the historical British West Indies.Belize’s abundance of terrestrial and marine plants and animals and its diversity of ecosystems, including extensive coral reefs, give it a key place in the globally significant Mesoamerican Biological Corridor.
It is considered a Central American and Caribbean nation with strong ties to both the American and Caribbean regions.It has an area of 22,970 square kilometres (8,867 sq. mi) and a population of 397,483 (2022). Its mainland is about 290 km (180 mi) long and 110 km (68 mi) wide. It is the least populated and least densely populated country in Central America. Its population growth rate of 1.87% per year (2018 estimate) is the second-highest in the region and one of the highest in the Western Hemisphere. Its capital is Belmopan, and its largest city is the namesake city of Belize City. The country has a diverse society composed of various cultures and languages. It is the only Central American country where English is the official language, while Belizean Creole, Spanish, and the Mayan languages are widely spoken. Over half the population is multilingual due to the diverse linguistic backgrounds of the population.
Home to the second-largest reef in the world, along with the majestic Mayan ruins, Belize is not only a popular tourist destination but is also attractive to investors. Foreign businesses choose to expand in Belize for its pro-business climate and economic stability. Belize supports local and foreign businesses with financial incentives and favourable tax policies. It has earned a positive reputation for ease of doing business, as international firms can register a company in the Caribbean country quickly and cost-effectively. To promote economic development, Belize is a member of the Caribbean Community (CARICOM). The benefits of being a member state include a better quality of life for residents and economic leverage in international trade and negotiations. Belize has a positive economic outlook owing to reductions in inflation and moderate GDP growth. The GDP in Belize increased by 10.5% in the first half of 2024, reaching $3.07 billion.Belize’s economy is supported by different industries such as tourism, agriculture, and the services sector, including IT. Tourism is a significant economic driver and reached record-breaking highs with a 23% increase in 2024.
ADVANTAGES
Tax Benefits and Financial Incentives:
- Zero Tax Regime: International Business Companies (IBCs) are generally exempt from income, capital gains, dividend, and stamp duty taxes if they do not trade within Belize.
- Investment Incentives: The government offers concessions via Commercial Free Zones (CFZs) and Export Processing Zones (EPZs) to encourage investment.
- No Capital Gains Tax: Investors do not pay taxes on capital gains, and there are no taxes on inheritance.
Ease of Operations and Ownership:
- 100% Foreign Ownership: Foreigners can own 100% of a company or real estate without local partners.
- Fast Incorporation: Offshore companies can be registered within 1–2 business days.
- Confidentiality: Belize provides high levels of privacy, with shareholder information not part of the public record.
Stable Legal and Economic Environment:
- Stable Currency: The Belize Dollar is fixed at a 2:1 ratio to the USD.
- Legal System: Based on English Common Law, offering familiar, reliable contract enforcement.
- Political Stability: A long-standing democratic tradition.
Strategic Location and Connectivity:
- Gateway Location: Positioned between Central America and the Caribbean, offering easy access to the U.S. and Mexico.
- Language: As the only English-speaking country in Central America, it eases business communication for North Americans.
- Trade Agreements: Benefits from preferential access to CARICOM, the Caribbean Basin Initiative (CBI) with the U.S., and EU agreements.
TAX REGIME
Income Tax:
A flat 25% rate applies to individuals earning over BZD 26,000 (approx. USD 13,000) annually.
Business Tax:
Businesses, including corporations, are taxed on gross receipts rather than net profit, with rates ranging from 0.75% to 25% depending on the industry.
International Business Companies (IBCs):
Following 2019 reforms, IBCs are not automatically tax-exempt; they must comply with economic substance regulations if they have a physical presence or earn income in Belize. However, companies with only foreign-source income may still qualify for exemption.
General Sales Tax (GST):
A 12.5% tax is levied on most goods and services.
Property & Land Tax:
A 1% tax on the unimproved value of land.
Stamp Duty:
5–8% on land transfers, depending on the nationality of the buyer.
Environmental Tax:
2%–3% on most imported goods.
BELIZE COMPANIES
International Business Company (IBC):
The most prevalent vehicle for foreign investors and offshore activities, offering high confidentiality, tax exemptions, and flexible management.
Limited Liability Company (LLC):
Ideal for combining the benefits of a corporation and partnership, allowing members to avoid personal liability for company debts.
Belize Company (BC):
A standard legal entity, which can be formed as a private or public company, that is distinct from its owners and provides limited liability.
Limited Duration Company (LDC):
A hybrid structure used for specific projects or joint ventures, possessing a set lifespan.
Partnership:
An agreement between two or more persons, which can be general or limited.
Sole Proprietorship:
A simple, unincorporated business owned by one individual who bears full liability.
Other Specialized Entities:
These include International Trusts, International Foundations, Segregated Portfolio Companies (SPCs), and Private Trust Companies.
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Contact Us
Get in touch with the right people to get the right help in setting up your business in BELIZE .
enquiries@chandrawatpartners.com.