What You Need To Know About Second Home Tax Benefits in Belize

Second Home Tax Benefits in Belize

Although “tax havens” have gained a bad reputation lately, the government of Belize has openly made buying property and investing in a second home a very attractive option for foreigners. It may be beneficial to consult with your accountant before making any decisions, it’s worth noting that a second home in Belize can qualify as a tax shelter.

Whether you purchase property in Belize outright or opt for a mortgage, property taxes and the interest on your mortgage can be deducted against taxes owed to the IRS. Furthermore, a second home in Belize can also be rented out for up to two weeks in a year without this income needing to be reported to the IRS. For longer-term rentals, owners can deduct up to $25,000 in repair costs, depreciation, and management fees from their taxes.

Approximately 15 years ago, the government of Belize decided to pivot to become one of the last remaining countries that ensures privacy, property rights, and foreign investment. Foreigners have the same rights as locals when it comes to buying and selling property, and many of the laws in Belize are designed to help foreign individuals enjoy a tax-free lifestyle.

All income over $10,000 earned in Belize is taxed at a rate of 25% but both pension (including Social Security) and business income originating outside of Belize is exempt from all taxes for qualified residents. Belize does not have a progressive or graduated income tax, and incoming assets and income can be legally funneled through a Belizean International Business Corporation.

Property taxes in Belize are extremely low, starting at 1-1.5% of the assessed value for undeveloped land. Property transfer taxes currently stand at 5%, and other miscellaneous costs that generally add about an additional 2% to the final cost.

Cerros Sands

Located in Belize’s northern Corozal District, Cerros Sands is a master-planned, gated community ideal for retirees and expats seeking to purchase a second home. Completed homes are currently available, as well as attractive undeveloped lots starting as low as $20,000.

With access to the best health care, infrastructure, and shopping in Belize and neighboring Mexico (just 10 miles away), residents of Cerros Sands can enjoy an active lifestyle from their new home in Belize. Cerros Sands is close to all of the top attractions in Belize, including Ambergris Caye, the Belize Barrier Reef, Belize City, and a variety of ancient Maya sites, parks, and nature reserves. The city of Chetumal is just a short drive from Cerros Sands, giving residents access to familiar low-cost retailers like Wal-Mart and Sam’s Club as well as affordable flights to and from the United States. Cancun is a 4 1/2 hour drive from Cerros Sands.

 

By | 2017-09-18T23:24:48+00:00 September 18th, 2017|Blog, Uncategorized|0 Comments

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