Last updated on May 6th, 2024 at 02:30 pm
Owning property abroad can provide many benefits, from giving you a place to retire internationally to providing supplemental rental income to ensuring you have a great vacation spot for getaways.
In recent years, more people looking to buy have begun to consider property for sale in Belize. If you’re one of them, this guide created by our team at Remitly will introduce you to the Belize real estate market, allow you to explore the benefits and drawbacks of owning property in the country, and provide tips on how to ensure a smooth transaction.
Can foreigners buy property in Belize?
The Belizean government is welcoming to foreigners and allows non-citizens to purchase property, condos, and homes for sale in Belize with no restrictions. In 2001, the country abolished its Alien Landholding Act, affording foreigners who buy real estate in Belize the exact same rights as citizens.
Why buy property in Belize?
There are many advantages to considering land, condos, and houses for sale in Belize. Some benefits to buying internationally in the country include the following.
Full ownership
As previously mentioned, you receive the same rights as citizens when you buy Belize property, making the country unique among Caribbean and Central American nations.
Many other countries in the region limit the rights of foreigners who purchase property. Laws may dictate where you can buy or place caps on the acreage you’re eligible to purchase. Some countries also require foreigners to buy real estate through a complicated trust or lease property they wish to buy from the government rather than owning it outright.
Choosing to purchase property for sale in Belize means you will own your home, condo, or land, and you can buy in the region you prefer.
Simple process
The buying and selling of property in Belize is loosely regulated. As a result, the process is simple from an administrative standpoint.
Foreigners don’t need to go through a lot of red tape to purchase properties for sale in Belize. Laws don’t even require you to be present in the country to complete the sale so you can handle things remotely.
Low ongoing costs
Compared to the U.S., the cost of living in Costa Rica is 55% less. Overall, the U.S. is the 5th most expensive place to live in the world, while Costa Rica ranks 73rd.
The difference in the cost of living means that the ongoing costs of owning condos and houses in Belize are less than you’d likely pay to have a rental property in the U.S. You’ll pay less for services like housekeeping, repairs, and maintenance. Insurance tends to be cheaper as well.
Low property taxes
In Belize, property taxes vary based on where you purchase property, but they’re generally lower than in the U.S. For example, if you own unoccupied San Pedro, Belize, real estate worth more than $300, you’re assessed a 2% tax. The tax rate for an occupied rental property in the city is 12.5%.
No language barrier
Belize is a former colony of the UK, and English remains its official language. The lack of a language barrier can make finding and purchasing real estate for sale in Belize easier.
Potential for vacation rental income
One of the biggest reasons people buy real estate abroad is to gain extra income through vacation rentals, and Belize is a top destination for tourists in Central America.
Over the last decade, Belize has begun many initiatives to encourage tourism. One example is the introduction of a digital nomad visa that allows remote workers to live in the country for up to 180 days.
The efforts spearheaded by the Belize Tourism Board have led to the number of international overnight visitors steadily rising. In May 2023 alone, 32,871 foreigners traveled to Belize, nearly three-quarters of whom were Americans. From 2021 to 2022, international visitors increased by 69.2%.
Due to the growing interest in vacationing in the country, there is a great potential for earning income if you consider Belize houses for sale in popular tourist areas.
Streamlined immigration process
People who purchase land, homes, and condos for sale in Belize can enjoy a simplified immigration process if they wish to relocate to the country permanently or temporarily. By providing a title for a property worth at least BZ$500,000 (approximately US$248,000), you can typically qualify for a temporary residency visa.
What’s the real estate market like in Belize?
As of 2023, the real estate market in Belize was strong due to booming tourism. RE/MAX reports that the demand for Belize properties for sale has risen over the last decade, and prices have been trending upward as a result. However, prices are still generally more affordable than in the U.S.
When considering Belize real estate for sale, it’s important to remember that markets can be unpredictable. Unforeseen events could negatively impact tourism and the real estate market. A recent example of this was the COVID-19 pandemic, which resulted in a sharp drop in tourism.
Still, experts generally predict that the Belize real estate market will remain strong for years to come. If the market continues to grow, the property value in Belize currently for sale will likely increase. As a result, foreigners who purchase now may be able to one day sell their properties for a much higher price than the original cost.
How much does it cost to buy property in Belize?
Changes in laws and market conditions can impact how much a house costs in Belize. As you search for Belize homes for sale, it’s a good idea to research the general costs.
To help you begin your research, the following are some things that you should consider when determining how much you’ll need to buy Belize property for sale.
Home prices
How much a house costs in Belize depends on size and location. Generally, buying Belize beachfront homes for sale will be more expensive than purchasing property in other areas due to greater demand. As of June 2023, prices for homes in Belize for sale and listed on Realtor.com ranged from $15,000 for a small house to $4.95 million for a luxury 8-bedroom mansion.
Fees
When you purchase a home in Belize, you’ll be responsible for paying some costs upfront, including:
- Deposit: You’ll typically need to make a down payment of 10% of the property’s purchase price. On expensive luxury homes, the down payment percentage may be smaller.
- Registration fees: Usually, the government of Belize requires buyers to obtain a land certificate and a deed of conveyance. The cost for both is around US$24.
- Closing costs: You can expect to pay about 1 to 2% of the purchase price in closing costs for title searches and transferring and filing documents.
- Additional fees: In some cases, you may be subject to additional fees for other things like wiring money, converting foreign currency to Belizean dollars, and having the title for the home mailed to you. The amount of these fees varies but will usually be under US$100.
Taxes
When you close on a property in Belize, you’ll need to pay a tax called a stamp duty to the government. The first US$10,000 of the purchase price is exempt from the tax, and there is an 8% tax on the remaining value. For example, if you buy a home worth US$100,000, you’d pay an 8% tax on US$90,000, which comes out to US$7,200.
As previously mentioned, you’ll also need to pay property taxes on your home or condo. How much you’ll pay will depend on the location and whether you’re using the property as a residence, a personal vacation home, or a rental property.
Insurance
In Belize, people who own rental property typically buy all-perils insurance, which covers losses due to rental damages, hurricanes, floods, and fires.
The cost of insurance depends on the value of the home. Some insurers charge $8 for every $1,000 of a concrete home’s value and $30 for every $1,000 of a wood home’s value, but other insurance companies have different ways of calculating premiums.
To get the best possible deal, it’s a good idea to obtain quotes from more than one insurer prior to purchasing property in Belize.
Where is the best place to buy property in Belize?
The best place to buy property in Belize depends on your goals and preferences. Someone looking to retire in Belize may wish to buy in a quiet area close to top hospitals, while families relocating may be concerned about the schools in the area. If you’re hoping to purchase property to use as an investment, tourist areas may be your best bet.
The following are some of the most popular places to buy property in Belize to help you begin your search:
- Ambergris Caye: An island off the tip of Mexico that is a popular tourist destination
- Caye Caulker: An island about 11 miles south of Ambergris Caye that is another tourist hot spot
- Placencia: Located at Belize’s southernmost point and known for its laid-back vibes
- Corozal: An off-the-beaten-path beach city located in northern Belize that is popular with expats
- Cayo District: The eco-tourism center of Belize that is home to the city of San Ignacio and generally more affordable than the cayes and cities located along the coasts
How to find a real estate agent in Belize
While you can buy homes and land for sale in Belize on your own, using a real estate agent is often a better choice. Real estate agents know how to buy property in Belize so they can guide you through the process. In addition, an agent can help you find properties that fit your budget and requirements.
The key to having a good experience is to choose a knowledgeable, reputable real estate agent. Here are some tips to help you with your search.
Choose an established real estate agency
Working with an international real estate agency can help ensure you end up with a reputable agent. Both RE/MAX and Keller Williams have a presence in Belize and can be good starting points for your search for the ideal agent.
Seek out recommendations
Use social media to connect with property owners in Belize. Ask who their real estate agent was and what their experience was like. Most importantly, find out if they would use the same agent again if they were starting over.
Read online reviews
Search for the real estate agency and the agent’s name. See if there are any news articles about them. Read any reviews left by previous clients.
Conduct interviews
Based on your research, create a shortlist of agents and then contact each one. Ask questions like:
- How long have you been a real estate agent in Belize?
- Do you have previous experience with real estate in the area where I’m looking?
- Do you have an area of specialty?
- What are your fees?
- Will you show me other real estate agencies’ listings?
The pitfalls of buying property in Belize
Although there are many benefits to buying property in Belize, there are some potential downsides that you should be aware of. They include the following.
High prices in popular areas
As previously mentioned, the real estate market in Belize is growing. Increased demand continues to push prices higher in top tourist destinations like Ambergris Caye and Caye Caulker. If you have a limited budget, you may need to look for properties in less popular areas.
Fewer regulations
Belize has fewer laws and regulations than the U.S. Although this makes the buying process simple, fewer regulations also mean lower construction standards. As a result, you’ll need to have any property carefully inspected before you buy.
Risk for disasters
Belize receives an average of six hurricanes per year. Beachfront homes and condos are at risk for storm damage, and a major storm could disrupt power and other services, causing inconveniences for you or tourists that rent your property. A comprehensive insurance policy with hurricane coverage can help mitigate some of these risks.
Potential for scams
Unfortunately, some unscrupulous individuals try to profit from Belize’s growing tourism industry and booming real estate market by preying on foreigners looking to buy property. In 2018, the FTC shut down one scheme that stole over $100 million from seniors looking to retire in Belize.
The good news is that working with a reputable real estate agent can help you avoid scams.
Tips and resources for buying property in Belize
Careful research and planning can help you avoid some potential pitfalls of purchasing real estate in Belize. Read on for tips on how to make the process as smooth as possible and for a list of resources that could be of help to you.
1. See the property in person
While it is possible to buy property in Belize without ever setting foot in the country, it’s wise to tour a home or condo for yourself.
In addition to inspecting the property, walk around the neighborhood. Make a note of what shops, services, and restaurants are nearby.
If you plan to rent your property, ask yourself what a tourist would think of the home and surrounding area. Or, imagine what it would be like to live there yourself if you’re planning to relocate to Belize.
2. Consider raw land for savings
If you have your heart set on living in a tourist hot spot where home prices tend to be higher, like Ambergris Caye or Caye Caulker, look into the cost of purchasing raw land and having a home built to your specifications. Often, Belize land for sale is less expensive, and construction costs tend to be affordable due to the country’s overall lower cost of living.
3. Order a property search
Ordering a property title search from the Belize Department of Lands and Survey Office is an important step in the real estate purchase process. The search will help you ensure that there are no outstanding liens on the property and that the person selling it is the legal owner. If you work with a real estate agent, they will typically handle this for you.
4. Obtain financing in your home country
Even if you have good credit in your home country, it can take time to build credit when moving abroad or purchasing an international rental property. As a result, many foreigners face difficulties obtaining mortgages from Belizean banks. You’ll likely have an easier time getting financing in your home country.
5. Know the tax implications of rental income
If your plan is to purchase property in Belize to rent to vacationers, consult an international tax attorney to assess your tax liabilities. You may need to pay income tax on your rental income in Belize and/or your home country. Find out the costs and requirements upfront so you can comply fully with tax laws at home and abroad.