Buying
property, in Belize, is relatively easy as the government is keen to
encourage inward investment. Therefore, there are very few
restrictions on foreign purchasers, in terms of financial
requirements or citizenship.
In
fact, the only rules by which a foreign purchaser must abide is
that, if you are intending to buy your own private island, you will
need to gain approval through the Ministry of Natural Resources.
Some
parts of Belize, primarily the smaller cayes, are also protected and
permission may be needed from the local village council.
As
with any foreign purchase, a local lawyer who understands the
requirements and the process is vital. Fortunately, as Belize is an
English speaking country, all of the negotiations and contracts will
be in English, meaning that you are at least able to have a basic
understanding of what is happening.
Lawyers in Belize are generally seen as trusted and pillars of the
community. Therefore, you can normally trust your lawyer to provide
you with a good service. As a rule, the costs of a lawyer for the
purchase of a property will be around 2 percent of the purchase
price. This should cover every aspect of purchase, from conducting
title searches to drafting the final documents.
Belize Culture
Obtaining mortgages from Belize banks for a non-resident is
extremely difficult. In general, therefore, the best way to finance
your Belizean property is to raise the funds elsewhere, normally
through using the equity in your own home in the UK, or possibly
through a second home in another country, such as the United States
of America.
Having
said this, new developments, in Belize, sometimes offer mortgage
packages thrown in. This is something not often seen in Britain and
it works in a way such that the developer keeps the title to the
property until it is fully paid off by the purchaser. Standard terms
would include, for example, a 10 percent down-payment and then the
rest being paid off, over 10 years, at a blanket 10 percent
interest. Usually, the best prices are for cash, so raising equity
elsewhere is always likely to be your best option, in this instance.
If you
are not buying for cash, then expect the down payment to be
something in the region of 30 to 50 percent of the final price, with
any agreement to pay the remainder due, over a shorter period than
you would be used to in the UK, such as over 5 or 10 years, normally
at a fixed interest rate.
When
land is transferred, in Belize, as with the UK, there is a stamp
tax. For everyone, this is 5 percent of the purchase price and if
you are not a Belize national this is raised to 10 percent of the
total purchase price. It is rumoured that this is set to increase to
12 percent, in the near future.
If you
have become a Belizean resident via the Retired Persons Incentive
Program, you are exempt from the second 5 percent stamp tax for
non-citizens.
When
all is taken into account, it is wise to budget an extra 12 to 15
percent, on any paid price for property.
The
great thing about Belize is that it is simple; the processes have
been developed to encourage external investors and there is very
little in the way of unnecessary bureaucracy. However, as with any
large purchase, you should always do your research thoroughly.
Exercise caution and seek local professional advice.
Buying Property in
Belize
