Belize remains a tax haven for many international businesses and expats.
It offers no capital gains tax on offshore income, low corporate tax rates for international business companies (IBCs), strong financial privacy laws, and territorial taxation.
In this article, we explore:
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The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.
Expats in Belize only pay taxes on income earned within the country.
Foreign-sourced income, such as overseas investments or pensions, is generally exempt.
Residency status may require certain reporting or compliance obligations, so professional advice is recommended for high-net-worth individuals to ensure full compliance.
Belize is still considered a tax haven in many respects, but with modern regulations designed to meet global compliance standards.
It no longer offers complete anonymity due to stricter reporting requirements, yet it remains attractive because:
Thus, while Belize has moved toward greater transparency, it continues to provide legitimate tax advantages.
Key advantages include:
Photo by Nataliya Vaitkevich on Pexels
Belize collects several types of taxes, though its overall tax burden remains low compared to many jurisdictions:
There is no capital gains tax in Belize, which is a significant advantage for real estate investors and international traders.
Withholding tax applies to payments such as dividends, royalties, and certain service fees paid to non-residents, with rates ranging from 15% to 25%.
Corporate tax rates in Belize depend on the type of business and where income is sourced.
Locally operating companies pay a standard Corporate Income Tax (CIT) ranging from 1.75% to 19% on chargeable income.
Business tax applies to gross receipts, with rates ranging from 1.75%.
Business tax in Belize is levied on income earned within the country.
Residents and companies operating in Belize must pay business tax based on their gross receipts rather than net profit.
Income generated from activities outside Belize is generally not subject to local business tax, making the system favorable for foreign-sourced earnings and international operations.
Belize continues to offer significant tax advantages for international businesses and expats.
Its territorial tax system, low corporate rates, absence of capital gains and inheritance taxes, and supportive legal framework make it an attractive jurisdiction for offshore operations.
While global compliance requirements have increased transparency, Belize remains a viable and strategic location for legitimate tax planning and international trade.
Yes, property owners in Belize are required to pay an annual property tax based on the unimproved value of the land.
Rates vary by municipality but generally range from 0.75% to 1.5%.
Non-taxable income in Belize includes income earned outside the country, such as foreign investment returns, pensions, and dividends from offshore accounts.
Belize operates under a territorial tax system, meaning only locally sourced income is subject to taxation.
Yes, US citizens and resident aliens are required to file US income tax returns and report worldwide income, regardless of where they live.
However, they may qualify for exclusions or credits under the Foreign Earned Income Exclusion (FEIE) or Foreign Tax Credit (FTC) to reduce or eliminate double taxation.
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Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.
It offers no capital gains tax on offshore income, low corporate tax rates for international business companies (IBCs), strong financial privacy laws, and territorial taxation.
In this article, we explore:
- Do foreigners pay tax in Belize?
- Is Belize a good tax haven?
- Are there any tax advantages in Belize?
- What are the taxes in Belize?
My contact details are [email protected] and WhatsApp +44-7393-450-837 if you have any questions.
The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.
Do Expats Pay Taxes in Belize?
Expats in Belize only pay taxes on income earned within the country.
Foreign-sourced income, such as overseas investments or pensions, is generally exempt.
Residency status may require certain reporting or compliance obligations, so professional advice is recommended for high-net-worth individuals to ensure full compliance.
Is Belize a Good Tax Haven?
Belize is still considered a tax haven in many respects, but with modern regulations designed to meet global compliance standards.
It no longer offers complete anonymity due to stricter reporting requirements, yet it remains attractive because:
- There is no capital gains tax on most transactions.
- The Belize corporate tax rate is favorable compared to other jurisdictions, especially for IBCs engaged in international trade.
- The country has no inheritance tax or estate tax.
Thus, while Belize has moved toward greater transparency, it continues to provide legitimate tax advantages.
What are the Tax Advantages of Belize?
Key advantages include:
- Simple tax structure – Only locally earned income is taxed, reducing administrative burdens.
- Territorial taxation – Companies and expats can legally plan around foreign-sourced income.
- Support for international trade and services – The framework allows smooth cross-border transactions and asset protection.
What are the Types of Taxes Collected in Belize?
Photo by Nataliya Vaitkevich on Pexels
Belize collects several types of taxes, though its overall tax burden remains low compared to many jurisdictions:
- Income Tax & Business Tax – Levied on locally earned income or business gross receipts.
- General Sales Tax (GST) – Replaced VAT system and applies to goods and services, currently at 12.5%.
- Withholding Tax – Applies to certain payments made to non-residents.
What is Belize Capital Gains Tax?
There is no capital gains tax in Belize, which is a significant advantage for real estate investors and international traders.
What is the Withholding Tax in Belize?
Withholding tax applies to payments such as dividends, royalties, and certain service fees paid to non-residents, with rates ranging from 15% to 25%.
What is Belize Corporate Tax Rate?
Corporate tax rates in Belize depend on the type of business and where income is sourced.
Locally operating companies pay a standard Corporate Income Tax (CIT) ranging from 1.75% to 19% on chargeable income.
Business tax applies to gross receipts, with rates ranging from 1.75%.
Who Pays Business Tax in Belize?
Business tax in Belize is levied on income earned within the country.
Residents and companies operating in Belize must pay business tax based on their gross receipts rather than net profit.
Income generated from activities outside Belize is generally not subject to local business tax, making the system favorable for foreign-sourced earnings and international operations.
Conclusion
Belize continues to offer significant tax advantages for international businesses and expats.
Its territorial tax system, low corporate rates, absence of capital gains and inheritance taxes, and supportive legal framework make it an attractive jurisdiction for offshore operations.
While global compliance requirements have increased transparency, Belize remains a viable and strategic location for legitimate tax planning and international trade.
FAQs
Do you pay property tax in Belize?
Yes, property owners in Belize are required to pay an annual property tax based on the unimproved value of the land.
Rates vary by municipality but generally range from 0.75% to 1.5%.
What is the non taxable income in Belize?
Non-taxable income in Belize includes income earned outside the country, such as foreign investment returns, pensions, and dividends from offshore accounts.
Belize operates under a territorial tax system, meaning only locally sourced income is subject to taxation.
Do you have to pay US taxes if you live in Belize?
Yes, US citizens and resident aliens are required to file US income tax returns and report worldwide income, regardless of where they live.
However, they may qualify for exclusions or credits under the Foreign Earned Income Exclusion (FEIE) or Foreign Tax Credit (FTC) to reduce or eliminate double taxation.
Pained by financial indecision?
Become my client
Take client eligibility quiz
Contact
Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.