With all of these benefits on offer, we figured it was worth exploring Belize. (At the very least, we'd have a nice vacation!) So we researched and narrowed down our likely property buying zones to a few key locations in Belize, including Ambergris Caye.
Whatever you have in mind, it helps to know a bit about the market and what steps are involved with making a real estate purchase. Here are seven of the most common questions people have about buying residential or commercial property in Belize.
Yes, Tony, and then when something does go wrong, they blame everybody - Belize, the realtor, the seller/developer - everyone but themselves. So people are their own worst enemies.
One thing interesting to note about buying property in Belize is that there are no financial incentives like we have in the States, i.e. you do not get to deduct your mortgage interest or property taxes.
Also, you\'ll have to put down a whole lot more money here in Belize to even be considered for a loan, so potential buyers should keep that in mind too.
There are no legal restrictions on foreigners buying property in this country, but foreigners can only buy land through a company. Since land and property overlap, we recommend getting professional legal help if you want to buy a property here.
One of the reasons why Belize is becoming so popular for foreigners is that buying property is not terribly difficult. Not only is English the official language of Belize, but the legal system is also based on British law. That makes a real estate transaction very straightforward and familiar to most residents of North America and the U.K. There are also no restrictions or hoops to jump through for foreigners in buying, renting and owning Belize property.
Though not a complicated place to buy real estate, it is recommended to hire a real estate attorney when buying property in Belize. It is helpful to have official legal advice during all steps in this process, as some aspects are not regulated strictly. The attorney will help the buyer undergo necessary research when investigating the property.
Belize is home to thousands of species of exotic birds and wildlife. A true paradise and great investment in the real estate market. Buying property in Belize is easy since both locals and foreigners have property rights which means that you have ownership rights to the land.
Due diligence means investigating facts about the physical condition and financial status of a property. Have your local agent assist you in this and is accessible for both locals and foreigners at a very reasonable price. Belize has it all, farmland, residential, beach front, industrial and even vacant lot.
The price of buying property in Belize is higher than in other countries. Depending on the location, you might have to pay 5% or more in stamp duty. For foreigners, the amount can be as high as 10%. While there is no capital gains tax in Belize, you must pay the General Sales Tax. The stamp tax is charged on the declared purchase price, but you can deduct the first $10,000 from the total amount when calculating the total.
Technically, foreigners are also prohibited from purchasing property within 50 kilometers of the coast or 100 kilometers of an international border. However, it is relatively easy to get around these restrictions by buying through a Mexican corporation or fiduciary trust (fideicomiso), in which a Mexican bank holds title to the property on behalf of a foreigner, who enjoy all the rights and benefits of ownership.
With a tropical climate, outstanding natural beauty, and good flight connections to the U.S., Costa Rica offers many of the same advantages as Belize. Foreigners have the same rights and protections as Costa Ricans when it comes to buying property, including being able to hold title to land. However, neither foreigners nor Costa Ricans are permitted to own or build on beaches in the Maritime Zone, which extends from the high tide mark to 200 meters inland.
Foreigners may not own property within six miles of international borders, as well as on some islands and in certain waterfront areas. Otherwise, there are few restrictions on non-citizens buying real estate. Other reasons to consider Panama include low taxes, stable prices, and a low cost of living, as well as direct flights to the United States.
With its rich history, culture, and cuisine, France is a perennial favorite for international property purchases. Although the country has a reputation for bureaucracy, foreigners have the same rights as French citizens to buy real estate and are eligible for in-country financing at low interest rates.
Another country where many people dream of owning property is Italy, which permits foreigners to purchase property freely provided they are citizens of the European Union or another country with a reciprocal ownership agreement, such as the United States. Property purchases follow a strict procedure, which is straightforward but bureaucratic.
The Malaysian government welcomes international investors, who are generally permitted to buy land on a freehold basis provided certain conditions, including a minimum purchase price, are met. Specific regulations vary from state to state, but apart from property on Malay Reserve Land, foreigners can generally purchase most types of land with approval from the relevant state authorities.
Under Section 1 of Article 27 of the Constitution of the United Mexican States, foreigners can buy property outside the restricted zone (strip of land of 100 kilometers along the border and 50 kilometers on the beaches), must obtain previously a permit from the Ministry of Foreign Affairs, Directorate General for Legal Affairs, at its headquarters or in the delegations inside the Republic by filing out the forms that are posted on the page -de-renuncia-para-la-adquisicion-de-bienes-inmuebles-fuera-de-zona-restringida and by submitting documents requested there. The license number shall be recorded in the deed of sale to be concluded before a notary public.
Why buy property in Belize?
There are currently no restrictions for foreigners renting, selling, or buying real estate in Belize. Property tax is generally low and set at just 1% or less of the unimproved value of the land. Matus Real Estate makes buying property in Belize effortless. Matus Real Estate will get it done for you, from identifying the right investment to closing the deal, we are here to serve you!
Buying property is always a stressful process and can be even more so when purchasing in a foreign country. However, Belize is part of the British Commonwealth with a legal system that shares the same British common law as does Canada and the United States. However, there are five basic things that every buyer must know before they begin that process of buying their dream property in Belize:
A foreigner can own property outright in Belize and has the same rights as a Belizean citizen to freehold property ownership. Since the Alien Landholding Act was abolished in 2001 there are no licenses, permits, special permissions or conditions needed for a foreigner to take title to freehold land in Belize.It is always advisable to have professional legal advice when purchasing property although you will often be told the opposite. There are experienced and reputable paralegals who will be familiar with the title history of local properties and they can often finalize a purchase. However, there can be important issues concerning how best to take title which can impact your closing costs and potentially impact how you sell your property. Don't take any risks, obtain qualified local, legal representation.Title insurance is very prevalent in the US and increasingly so in Canada but is not so common in Belize. However, Belize is one of the few Central American countries that in fact does offer title insurance through one of the major American providers, Stewart Title. It is important to note that the Government of Belize guarantees most Belizean titles while your local lawyer can provide a title opinion which makes property purchase as secure regarding your title as in the USA and Canada Closing costs in Belize are very straight forward. Since there is no capital gains tax associated with the purchase and sale of real estate, the Government assesses a 5% stamp tax on the declared purchase price of the property at the time of transfer of title. However, there is an additional tax of 5% for foreigners and persons who have resided in Belize for less than 3 years. It is important to fully review and understand your options prior to completing the sale to insure you take title to your Belizean property that best serves your particular circumstances. Closing fees to your lawyer or paralegal should be budgeted at a minimum of $500 - $1500. Local financing, although available, would not be a recommended course of action. The majority of foreign property transactions is either cash or otherwise financed offshore. Belizean interest rates are typically much higher than you will be used to in your home markets with fixed terms of only twelve months and only issued in Belizean dollars. At the end of every year the loan is closed out and then renewed at the current interest rate. A more reasonable alternative may be to borrow through an offshore banking institution and, as always, professional advice is very important.
Common sense needs to prevail when contemplating buying property in any foreign jurisdiction and that should begin by retaining an advisor who is on your side and not compromised by acting for the seller as well. Begin by following the above five factors and you will go a long way to making this an exciting and joyful experience.
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