Establishing tax residency in the Belize tax haven is a prudent element for your Plan B. Whether you are already established offshore, or its your first move, Belize will provide essential tax benefits. However, Belize is also a politically neutral country which provides additional protection in an unstable world.
So why not consider Belize to serve as the cornerstone of your offshore financial plan? Time is of the essence because turmoil is engulfing most of the world. Things can change overnight, you need be prepared in advance for unexpected adversity that can strike at any time! The Caribbean tax haven of Belize is waiting for you.
If you have already acquired a second passport from one of the Caribbean CBI countries, it makes the Belize tax haven even more ideal. For example, since Belize is a CARICOM member state, a residency visa in 15 different Caribbean countries is readily accessible for those holding CARICOM passports e.g. Dominica, Grenada. Learn more about CARICOM benefits below.
In further benefit, the Belize tax haven allows residents to qualify for citizenship after only 6 years. Therefore, you have the option to acquire a second or third passport in a relatively short amount of time at nominal cost. Enjoying the tax benefits all along!
Post Contents:
- Belize Tax Haven Benefits List
- Introduction to CARICOM
- Travel to Belize
- Non US Flights to Belize
- Colonial Timeline in Belize
- Natural Attractions in Belize
- Tax Laws for Individuals
- Tax Laws for Companies
- Stamp Duty Tax & Belize LLC
- Tax Residency for Individuals
- Tax Residency for Companies
- How to get Belize Residency
- How to get Belize Citizenship
Belize Tax Haven Benefits List
- The Belize government authorities impose tough secrecy laws that can result in prison terms and or fines for bank employees who provide private information to unauthorized third parties.
- Belize has a favorable income tax regime with the potential to eliminate your income tax.
- Stringent banking laws require banks in Belize to maintain high liquidity ratios of 24%.
- In further benefit, Belize has bank reserve requirements which are over 4x what US banks are required to maintain.
- Your money is indeed safer in Belize than it would be in the US. Especially if you factor in run away budget deficits and political brinkmanship in the US which can destabilize the global financial system at any time.
- You can safely open offshore bank accounts in Belize while earning high rates of interest on your deposits.
- Belize uses English as the national language which makes assimilation into the financial system much easier for those from English speaking countries.
- Belize offers readily accessible residency visas; especially for those from CARICOM member states. In addition, the government offers a path to Belize citizenship (attainable within 6 years).
Introduction to CARICOM
The national language of Belize is English while the most widely spoken language is Belizean Creole which is followed by Spanish. English heritage in Belize is a indeed a relic of the British colonial system. In addition, historical ties to the UK make Belize culturally distinct from all of the other countries in Central America.
As a result, Belize shows strong cultural similarities with their fellow Commonwealth countries in the Eastern Caribbean. This is evident due to their CARICOM membership status which facilitates immigration and economic ties between Belize and the 14 other CARICOM member states.
The CARICOM system is comparable in utility to the federal system in the US or the freedom of movement laws in the EU. CARICOM benefits are readily available for those holding CARICOM passports.
Belize or one of the CBI countries in the Eastern Caribbean e.g. Dominica, Grenada are CARICOM states offering a fast path to citizenship for qualified applicants with the requisite financial means and clean backgrounds.
International Flights to Belize Tax Haven
Belize is bordered by Mexico to the north, while Guatemala lies to the west and also to the south. In addition, the Caribbean Sea borders Belize to the east. The primary international gateway is Phillip SW Goldson International Airport which is located about 15 kilometers from Belize City. Those who wish to visit Belize can consider several options for entry.
For those already located in Central America, flights to Belize’s international airport are not hard to find. Daily flight options are offered from Mexico City, but also Panama City which serves as the regional hub. There are also regular flights available from Guatemala.
If you are coming from the United States there are daily flights available from Los Angeles, Dallas and Miami. For those located in Asia or Continental Europe, the US transit hubs are most common, but not always necessary.
Non US Flight Options
How do you get to Belize without flying through US airspace or any US airport? From East Asia, consider flying through Tokyo, Japan to Mexico City. Daily non-stop flights across the Pacific are available which avoid US transit and US airspace altogether. From Mexico City, it is then a short hop onward to Belize City.
Another option to consider when coming from Asia is transiting through Istanbul, Turkey. There are daily non-stop flights from Istanbul to Panama City. From Panama City, there are at least one or two direct flights per week to Belize.
While those coming from Europe who wish to avoid the US can also consider transiting through Mexico City or Panama City. Direct flights are available from most major European cities.
Post Colonial Belize Seeks Independence
Strong political opposition has always existed in Belize that objects to maintaining colonial ties with the UK. However, opposition to the British Monarch is gaining momentum as calls for slave reparations and constitutional change get stronger.
Currently, there are limitations to British authority. For example, the British monarch can only be advised on matters concerning Belize by elected Belize ministers. Nonetheless, King Charles III remains seated as the Belizean Monarch, although it is not clear how much longer the status quo will prevail.
The prime minister has promised to call a referendum in 2024 which could change the constitution of Belize. Hopefully, Belize will soon join the other CARICOM member states such as the Commonwealth of Dominica (1978) and Barbados (2021) to complete the transition from constitutional monarchy to independent republic.
Although the British Monarch remains in place at time of writing, the seeds of an independent republic in Belize are being sown.
| Timeline | Historical Event |
| 1500 B.C. – 1200 A.D. | Maya Civilization spreads and flourished in the area. |
| 1502-1504 | Columbus sailed along the Gulf of Honduras. |
| 1638-1798 | European settlers arrived in Belize. |
| 1798-1840 | Britain defeats Spain in Battle of St George’s Caye. |
| 1840 | Belize becomes British Colony named “British Honduras”. |
| Sept 21, 1981 | Belize achieves independence from United Kingdom |
| 2024-?? | Calls for a referendum to remove the British monarch gain traction. |
Belize Tropical Paradise
For those with prudence and foresight, the Belize tax haven offers diverse opportunities. Indeed, Belize financial benefits work in combination with the tropical breeze, pristine turquoise water and fine white sand beaches. As a result, the background of the world class banking system in Belize is their pristine natural environment.
Sound like the Cayman Islands? Its not, the Belize tax haven is a much more seclusive option offering residency in addition to a path to citizenship within 6 years (see below). In addition, you have tropical splendor and diversity on your doorstep.
Case in point is the Belize Barrier Reef which is the second largest barrier reef ecosystem in the world. Hidden within the barrier reef ecosystem is the Belize Blue Hole, surrounded by coral reefs, providing an ideal habitat for a wide variety of tropical marine life.
So after you open your bank accounts, the Caribbean Sea will welcome you. Enjoy offshore Belize where you can swim with manatees, manta rays, sea turtles, whales and much more. Such are the many benefits of the Belize tax haven.
Belize Tax Laws for Individuals
The substantive income tax laws of Belize for individuals are based on the Income and Business Tax Act Chapter 55. In simple terms, income tax in Belize is only assessed upon the “chargeable income of any person accruing in or derived from Belize”.
As a result, income that originated offshore (outside Belize) is tax free, even if it is received in Belize. In addition, there is no capital gains or estate taxes. On that note, rental income from investment property in Belize is taxed at only 1.75%.
In regards to locally sourced employment income, the tax system is tiered with relief available for income which falls below certain thresholds. Tiered personal income tax rates along with income tax filing documents can be referenced at the Belize Tax Service website portal.
The income tax rate of 25% applies to all chargeable income in excess of the amount of “personal relief”. All amounts are in Belize dollars (BZD) which is pegged to the USD at 2 to 1 ratio e.g. 2 BZD = 1 USD.
| Earning Level | Personal Relief |
| Below $26,000 | $25,600 |
| Between $26,000.01 and $27,000 | $24,600 |
| Between $27,000.01 and $29,000 | $22,600 |
| Persons earning $29,000.01 and above | $19,600 |
Belize Tax Laws for Companies
The tax laws for companies are also derived from the Income and Business Tax Act Chapter 55 referenced above. Generally speaking, Belize charges a flat income tax rate of 25% on all income which is “accruing in or derived from Belize” regardless if the income is not received in Belize.
As a result, all offshore income should be exempt. This includes tax exemption for capital gains. Furthermore, dividends paid by offshore companies formed in Belize are also tax exempt when paid to non-Belize citizens.
Some local tax exemptions of note which apply to locally sourced income are referenced in 108 (1) of the Income Tax Act:
(a) receipts from trade or of less than $75,000.00 per annum, where such receipts are the only means of livelihood of the tax payer.
(b) receipts from profession or vocation of less than $20,000.00 per annum, where such receipts are the only source of livelihood of the tax payer.
Additional Company Tax Benefits (Stamp Duty, Belize LLC)
The costs of company registration in Belize are very low. Indeed, annual renewal fees tend to be at least 30-50% lower than other offshore jurisdictions. This is mostly attributable to Belize having eliminated Stamp Duty Tax on company formation documents.
Additional benefits include the Belize LLC which allows the company income tax reporting to carry through to the owners, rather than the company itself. A Belize LLC is based on the Delaware LLC. A similar taxation model is used for S-corporations.
The many benefits of the Belize LLC can work in combination with other offshore entities such as an offshore trust. Therefore, consider forming a Belize LLC to serve as trustee or to hold your assets inside a trust. Contact me for details.
Tax Residency for Individuals
A person is a Belize tax resident if they are physically present in Belize in excess of 182 days in the same basis year or they were domiciled in Belize.
Income and Business Tax Act (IBTA) Chapter 55 16 (6) – a person shall be deemed to be resident during a basis year if he spent in the aggregate more than one hundred and eighty-two days within the country in that basis year or was domiciled in Belize.
Or in the situation where a person is not defined as a Belize tax resident under the above referenced guidelines, but has employment income derived from within Belize:
IBTA Section 5 (3) – The gains and profits from any employment exercised in the country (Belize) shall be deemed to be derived from the country whether the gains or profits from such employment are received in the country or not.
Tax Residency for Companies
Generally speaking, companies registered under the IBTA are tax resident where the central management and control of the company is situated.
IBTA section 9 (3) – For the purposes of this section a company shall be deemed to be resident in that country only in which the central management and control of its business is situate.
However, further clarification is necessary. To further clarify, companies registered under the International Business Companies Act (IBC) Chapter 270 of the Laws of Belize are not deemed to be tax residents of Belize.
IBC Section 2 (1) of the IBC is interpreted to mean that even if a person or company is resident in Belize or carries on business from a fixed office located in Belize, such company, if formed under the IBC (instead of the IBTA) is nonetheless excluded.
Become a Resident of Belize
An individual can acquire Belize tax residency by being physically present in the country for a minimum of 182 days during the tax year. This makes it easy for those holding CARICOM passports because you are granted 6 months visa free on arrival.
In further benefit, CARICOM citizens can apply for a skills certificate under the CARICOM agreement. As a result, you would obtain residency (the right to live and work) in Belize for an indefinite period.
How do you qualify for the CARICOM skills certificate? As the name implies, the skills certificate provides the right to live and work in Belize to those who can bring special skills to the country. For example, if you are holding an associates degree, this would be one way fulfill the special skills requirement.
You can apply for residency at the local CARICOM office in the capital city of Belmopan, at The Leigh Richardson Building. Processing time for the application is usually 7 days or less but can vary depending on the current work load.
How to Obtain Belize Citizenship
The Belize tax haven offers a compelling path to citizenship for those holding permanent resident status and residing in the country for at least 5 years. First you will need to acquire permanent residency, which is relatively easy.
To qualify for permanent residency you must reside in Belize for a minimum of 1 year without leaving the country for a period exceeding 14 days. In addition, demonstrate to the immigration office that you have never been convicted of a criminal offense in any country that carries a prison sentence of over one year and that you have not been granted a free pardon for that offense.
Furthermore, demonstrate that you are financially stable and can continue to support yourself. The application fees for permanent residency are nominal, especially for CARICOM passport holders who can apply for reduced cost of $250.
So in theory, you could have your Belize passport within 6 years. This includes the initial first year as resident in order to become a permanent resident; then an additional 5 years residing in the country as a permanent resident. You can enjoy Belize tax benefits while you wait.