Belize tourism and Belize real estate is expanding the luxury market. The luxury travel industry has grown unprecedentedly in recent years due to rising spending power, an expanding middle-class population, emerging luxury trends, and the expansion of luxury hotels.
The definition of luxury travel has evolved dramatically in recent years, and people are now far more adventurous. They are more interested in experiencing local customs and cuisine.
Earlier this year, a survey from GlobalData.com found that luxury tourism has recovered quicker then budget tourism.
The global luxury travel market is expected to grow at a compound annual growth rate of 7.8% to 8.9% from 2022 to 2032, reaching a market size of USD 2.32 trillion to 2.76 trillion by 2032.
Caribbean & Central America Luxury Tourism
The Belize Region, with the Caribbean & Central America as a whole, outperforms the average recovery trends of the Americas, Europe, and Asia Pacific in the Luxury Tourism sector. This is shown in the revenue and profit trends.
The Caribbean & Central America Region (including Belize) has a higher ADR and Occupancy than other Western Hemisphere markets like Mexico, Canada & USA for luxury tourism.
The Caribbean & Central America Region is expected to have an annual tourism GDP growth rate of 5.5% to 6.7% between now and 2030.
Belize Tourism & Luxury Market
The Caribbean & Latin American (Belize) luxury tourism industry will likely be one of the fastest growing between now and 2032, with the most opportunity.
Belize, with the BTB (Belize Tourism Board), has taken steps in advancing and growing the Belize Luxury Tourism Industry.
Luxury travel services cover the most desirable and premium experiences in terms of luxury accommodations, convenient transport facilities, and authentic and exclusive travel experiences.
The Luxury Tourism program aims to provide outstanding, exclusive, and convenient tourism services and experiences to tourists and locals. In Belize, some of the recent announcements around luxury tourism include;
Even though luxury tourism appeals to a smaller demographic (unlike cruises and all-inclusive), they are more consistent, yield higher returns, is surprisingly not susceptible to market fluctuations, have better occupancy, and better clientele. The most interesting take is that if there are slower periods, the luxury market can lower prices and push out the “non-luxury” market.
Belize as a whole is pushing luxury tourism, making it easier for yachts, allowing FBO and private planes, creating direct flight routes from high net-worth locations, etc. With all this push, Belize is working on becoming a Cayman Islands, Maldives, Turks & Caicos, Bahamas, or St Martin, instead of a budget destination like Mexico or the Dominican Republic.
Belize is also seeing far more celebrities and high net-worth travelers visiting Belize and Ambergris Caye. But what is interesting is the fact we do not have many of the luxury villas in our lodging inventory to accommodate these travelers.
Luxury Tourism
If you build a luxury house/villa with outdoor space and amenities (even 2, 3 or 4 bedrooms), you will capture the luxury tourism market. The house or unit does not need to be large; just provide fixtures, touches, service, etc.
With luxury tourism and luxury travelers, owners/investors are able to charge any nightly rental rate you want. Example: Rolex does not compromise the price of new watches even during an economic downturn, and every store you visit is always sold out.
Earlier this year, a survey from GlobalData.com found that luxury tourism has recovered quicker then budget tourism.
The global luxury travel market is expected to grow at a compound annual growth rate of 7.8% to 8.9% from 2022 to 2032, reaching a market size of USD 2.32 trillion to 2.76 trillion by 2032.
The 2022 Global Travel Trends Report of American Express Travel study found that 58% of respondents opt for solo travel to visit their dream destination, strengthening the demand for luxury travel.
The Caribbean & Latin American luxury tourism industry is likely to be one of the fastest growing between now and 2032, with the most opportunity.
Regional Luxury Market
The luxury segment in the region (Belize) is ahead of the all-inclusive and full-service properties in profit margin growth and opportunity.
Luxury Tourism has a Higher ADR (Average Daily Rate & Nightly Rental Rate) and Better Occupancy than full-service or all-inclusive.
Luxury Tourism sees year-round bookings with better ADR and occupancy in high and low seasons. Luxury tourism has less volatility and seasonality. There is no low season in the luxury market segment in the region. Luxury has seen heightened off-season months.
Profit margins are higher in luxury tourism, with annual and quarterly revenue and profits rising due to more substantial rate increases. Luxury tourism has a much higher revenue per room or unit.
Belize Luxury Tourism Announcements
Luxury travel services cover the most desirable and premium experiences in terms of luxury accommodations, convenient transport facilities, and authentic and exclusive travel experiences. The overall aim of the Luxury Tourism program is to provide outstanding, exclusive, and convenient tourism services and experiences to tourists and locals.
Four Seasons on Caye Chapel
Six Senses on Ambergris Caye
FBO & Private Aviation
Yacht & Nautical Tourism
Filling Luxury Tourism Market Gaps
Fine Dining & Restaurant Facilities
Belize Travel & Facilities
Belize has a range of initiatives and infrastructure programs coming in to enhance and increase tourism. With additional flights (including New York JFK), improved transportation, etc. You can see some of the tourism enhancements and initiatives below;
3 million anticipated passenger movements at PGIA (Belize International Airport BZE) in 2045.
PGIA (BZE Airport) Facility Extensive Upgrade underway and expected completion in 2040.
Enhanced Border Facilities.
Increased – Ground Transportation Connections.
Domestic Airlines with expanded international routes.
Interregional connectivity.
Renovations at Municipal Airports to expand Private Aviation.
Addition of FBO facilities at national and domestic airports.
To learn more about Belize real estate and investing in Belize contact RE/MAX Belize. We look forward to sharing more information on Belize and opportunities in the luxury tourism market!
The Belize Investment Summit 2023 focused on attracting and promoting investment for economic development in Belize, identifying opportunities, and showcasing Belize’s readiness to support global investment.
The Prime Minister addressed the Summit, highlighting the government’s vision on enhanced and strategic investments and presentations from other high-profile international experts, policymakers, and enterprise movers and shakers who shape Belize’s investment climate. Dustin Rennie from RE/MAX Belize was included as one of the industry experts for real estate and development.
Тhrоughоut thе ѕummіt, аttеndееѕ bеnеfіtеd frоm іnѕіghtѕ ѕhаrеd bу іntеrnаtіоnаl ехреrtѕ, tор-tіеr рublіс оffісіаlѕ, Сhіеf Ехесutіvе Оffісеrѕ, аnd kеу роlісуmаkеrѕ. Тhеѕе ѕtаkеhоldеrѕ, whо соllесtіvеlу ѕhаре the іnvеѕtmеnt future of Belize. The summit featured a number of presentations and panels with а соmрrеhеnѕіvе оvеrvіеw оf thе орроrtunіtіеѕ аvаіlаblе іn Belize.
Belize Tourism Board
The Belize Tourism Board (BTB), as part of their initiative to drive Tourism Investment in Belize, hosted a series of panel discussions at the Belize Investment Summit. The panels highlighted development success stories in Belize’s current and future opportunities. The panels provided guidance for persons wishing to invest in Belize.
Dustin Rennie
Dustin Rennie was a Guest Panelist on the Investment and Real Estate Opportunities in Belize. Dustin contributed valuable insight into Belize’s real estate market, investment opportunities, and future development. On the panel, Dustin Rennie discussed real estate investment and setting up business in Belize and the requisite preparation in terms of a feasibility study to connect brands or investors with projects—review of Hotel Licensing Requirements and Accommodation taxes.
Panel Included:
Simone Bell | Investment and Innovation Specialist, Belize Tourism Board
Dustin Rennie | Regional Director RE/MAX Belize Belize
John Lancet | Senior Managing Director & Practice Leader South & Caribbean, HVS (link)
Abil Castaneda | Chief Tourism Officer, Ministry of Tourism & Diaspora Relations (link)
Dustin Rennie, John Lancet & Abil Castaneda Belize Investment Summit
Dustin Rennie Belize Investment Summit
John Lancet & Dustin Rennie Belize Investment Summit
Abil Castaneda with Dustin Rennie, John Lancet & Simone Bell at Belize Investment Summit
Abil Castaneda with Dustin Rennie, John Lancet & Simone Bell at Belize Investment Summit
Dustin Rennie with RE/MAX Belize at the Belize Investment Summit 2023. The panel explored real estate investment and setting up business in Belize. Connecting brands and investors with projects. Dustin Rennie contributed valuable insight into Belize’s real estate market, investment opportunities, and development.
Dustin Rennie is the director of RE/MAX Belize. Dustin Rennie is a member of the RE/MAX Hall of Fame, earner of Career Achievements & Leadership, and recognized as one of the top real estate experts in the Caribbean & Central America region. Dustin Rennie won top commercial agent for RE/MAX Caribbean & Central America for 2022 and was among the top 100 global agents (residential & commercial).
Dustin has been a Diamond Award winner with RE/MAX in 2021 & 2022 and was recognized as one of the top producers.
The Belize Investment Summit 2023 focused on attracting and promoting investment for economic development in Belize, identifying opportunities, and showcasing Belize’s readiness to support global investment. This included Belize real estate investment.
Belize Tourism has been on the rise, and the vacation rental market on Ambergris Caye has been booming!
Belize has full foreign ownership (where foreigners have the same ownership rights as locals), and when you buy a home or Belize land, you own it outright with a fee-simple title. The high occupancy and nightly rental rates make Ambergris Caye Real Estate a popular destination for Airbnb investors.
Rental Property Amenities
One of the driving factors of a strong Airbnb rental property is the amenities a home offers; this includes but is not limited to the following:
Number of Bedrooms
Private Pool
Large Bedrooms with Ensuite Bathrooms
King Size Beds
Hot Tub or Spa
High-Speed Internet
The other driving force is how well the property photographs. A well-furnished and decorated property will outperform something more standard. Take pictures that capture the character of the place, the surrounding area, and any amenities.
Below you can see the most commonly searched amenities on Airbnb based in 2023;
Bedroom Count for Airbnb
The units with a higher bedroom count often outperform the lower bedroom count homes. Below, you can see the inventory of rental units by bedroom count on Ambergris Caye;
From an investment standpoint, 3 or more bedrooms are a great opportunity due to the lack of inventory on the island of Ambergris Caye. There are 12 homes in the lodging inventory with 4 bedrooms. There are 9 houses with 5+ bedrooms. The lack of supply and high demand creates a high-yield rental income property.
Mahogany Bay is one of the most popular locations for development and investment in Belize(and Ambergris Caye). Mahogany Bay has a rental management program that generates hands-off passive income for owners and investors.
One of the reasons so many investors and owners love Mahogany Bay is the high degree of ownership control. You own the property outright with a fee-simple title (the strongest form of property ownership). As an owner, you have the peace of mind of having professional rental management rent out the property when it is not in use while also having unlimited use and enjoyment.
If you are considering investing in Belize and generating passive Airbnb rental income, check out the video update below;
Contact us to learn more about investing in Belize, the rental market, and opportunities in Belize!
Using a Self-Directed IRA or 401K to Invest in Belize
We are frequently asked, “Can I use an IRA or 401K to invest in Belize real estate?”. The answer is YES, you can! We have worked with countless Americans, helping them invest in Belize real estate using their SDIRA or 401K without paying taxes on withdrawing funds. This post covers the different investment strategies and ways you can use a 401K or Self-Directed IRA to invest in Belize.
One way to manage costs, minimize the out-of-pocket investment, and ease the burden of taxation is to purchase real estate under a Self-Directed IRA or 401K. These structures are very easy to do in Belize and allow Americans to purchase an off-shore investment property using investment funds. The benefits of ownership under these legal entities include; access to capital for investment, and less taxation on capital gains, thus earning greater profits from the Belize real estate investment.
Real estate investors (from the US) can hold investment real estate in an IRA or 401K to gain access to capital (without paying high taxation) and reduce the tax exposure (as long as the investment capital has not been distributed to the IRA owner).
Under the IRS’s self-directed IRA rules, contributions to Self-Directed IRA accounts can be used to purchase real estate (commercial, residential, or raw land) inside and outside the United States. This allows investors to use Self-Directed IRA funds or a 401K to invest in Belize real estate.
However, contributions to offshore real estate IRAs are subject to additional rules. For example, while the property in your IRA can be rented to others, you can’t rent it out to your family. The property can also not be used for your own personal use (it has to remain strictly an investment).
Another advantage is that the rental income from an offshore Belize real estate investment through IRA is deferred and can be made tax-free if purchased using a ROTH IRA. Under this setup, you could, in theory, collect decades’ worth of rental income and not pay US tax. You only need to worry about taxes when you distribute the income from the property to yourself in the future.
Belize is a beautiful country with a lot to offer, including; tropical beaches, tax incentives, a favorable economy, and financial benefits like low-cost properties and tax-free buying for qualified retirees. When considering property in Belize, understanding your financing options may seem confusing and complicated. Thankfully, a few property financing options exist, even for non-residents.
In Belize, we do not have standard mortgages or bank financing that many investors and owners use in Canada or the US. Most real estate transactions in Belize are cash sales, but some opportunities with vendor financing are available. Even though Belize is primarily a cash sale market, there are several advantages when investing in an off-shore market that is not overly leveraged.
It is also important to note that Belize is a predominantly cash market; because of this, we don’t have overlending and real estate bubbles (which create more significant drops and volatility).
Advantages of Buying in a Cash Market
As mentioned, Belize is primarily a cash-sale transaction market. Even though investors do not have the same opportunities to leverage their investment, there are a number of advantages to investing in a cash sale market. There are many upsides when making a cash market real estate investment (like Belize). Some of the most notable include:
Diversification
Investing in an off-shore market, investors have wider access to innovative projects and more unique opportunities than traditionally in the public or domestic marketplace. Investors are able to look at stable cash flow from a vacation market with growing popularity. For example, a private real estate investor will see that the dynamics of buying and selling in a cash market significantly lower an asset’s volatility potential. Cash sale real estate markets are less susceptible to volatility as they do not have the bank foreclosures of more traditional economies.
Lower Volatility
Markets are known to be volatile (especially markets that are over-leveraged); it’s just the nature of an economy reliant on “borrowing money.” While cash market investments aren’t completely immune to recessions and economic fluctuations, the cash sale real estate sectors have less volatility and experience a faster recovery/smoothing out. When the global market is challenging, cash sale market investments minimize the volatility of an investment portfolio. Low-volatility, cash sale markets see less drastic declines in value when economies adjust.
Higher Return Potentials
In the investment industry, private markets outperform public ones due in part to the illiquidity risk premium, which is the return an investor requires for investing in something that can’t be quickly sold or exchanged for cash. This remains true in cash sale markets (like Belize). Property liquidity is more accessible as there will be less competition amongst a smaller buyer pool of qualified purchasers. In Belize, a property owned outright (cash) can be leveraged and offer seller/vendor financing, creating passive income and a higher ROI over time.
Unique Opportunities
In Belize, investors have access to various opportunities, from rental income-producing properties to appreciating locations, Caribbean beaches to lush jungles. Belize real estate (as it is at the early stages of development) opens the door to the lifecycle of an investment – from its inception through its growth. Investors also have access to rental management options and greater visibility and ability to forecast investment growth. Being a cash off-shore opportunity leads to greater influence and control over the investment/market.
Long-Term Focus
Public markets and real estate in the US or Canada have recently been focused on the short term. The short-term draw lead to low-interest rates, quick returns, etc. Belize as a cash investment is a long to mid-term investment strategy. The public market and real estate in the US tend to be more reactive, sometimes very dramatically, during an economic downtown. As an investor, say in Belize real estate, you have your eye on the future horizon and aren’t worried about these short-term fluctuations. One of the most important WarrenBuffett quotes on investing that you can take in is, “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10minutes.”
Lower Risk
There is a certain amount of risk associated with an investment. People often view investing off-shore as high risk when there are far fewer risks in certain markets. Belize is a perfect example. In a cash market, you have less external risk. With any investment, there will be a risk; even though there is a risk, you can also mitigate the exposure. The cash market of Belize, with the string ownership rights and foreign investment incentives, has less risk, and investment is more protected. When economies turn, people no longer look for Return on Investment; they look for Return of Investment.
Associated Costs
Compared to more traditional real estate markets or domestic real estate (that has very high costs of ownership), Belize is very low. Property taxes in Belize are very little. You own land outright without the costs of upkeep and carrying costs. Even rental properties have lower operational costs in Belize.
Diversification from Interest & Inflation
American and Canadian real estate markets are known to be volatile – it’s just the nature of an economy reliant on “borrowing money.” Interest and inflation are prominent, uncontrollable dictators of property value in these markets – often leaving property owners vulnerable to unmanageable debt and property values decreasing. This makes these markets REACTIVE, which comes with risk.
Meanwhile, in unleveraged, cash markets like Belize – property values are much more simple, driven by supply and demand. There are rarely foreclosures or defaults since most property is owned outright, in cash. Investing in areas with limited land (scarcity), like islands, means that generally, as time passes and land becomes more limited, property values rise in correlation. This makes Belize much more of a PROACTIVE market – favoring savvy investors to secure their land early; at the current price.
No market is entirely immune to risks of recessions and economic fluctuations, but these days, interest and inflation are extremely high in the USA and Canada.
However, cash sale real estate markets have less volatility and experience a faster recovery/smoothing out.
This is why owning land in a stable, less volatile market like Belize is a great way to diversify with more secure, less volatile, and cash-owned property.
Stable & Less Volatile Appreciation
Every property that is sold equals one less lot you can buy. The most strategic investors look to own land in areas with high tourism demand and low supply – like Ambergris Caye Real Estate. This way, the growth next door and in your area steadily increases your property value while you hold your land or cash flow.
This is why most investors seek to own multiple properties – giving them the freedom to build on some and increase the equity value of their others, which they can flip in the future, tax strategically.
Mutually, private real estate investors will see that the dynamics of buying and selling in a cash market significantly lower an asset’s volatility potential. Cash sale real estate markets are less susceptible to volatility as they do not have the bank foreclosures of more traditional economies. This favors a long-term investment mentality – buy, hold, grow, cash-flow, flip.
Investing in an off-shore market like Belize allows investors to look at unique short-term cash flow from a booming emerging vacation market with growing popularity – while their property appreciates.
Financing Property in Belize
Belize has become a popular location and destination for retiring expats. Belize is a low tax jurisdiction with a warm Caribbean climate, English Speaking, and retirement incentive programs like QRP. For retirees, Belize makes immigration and relocation easy. English is the primary language, and Belize’s legal system is based on British Common Law. As a result, Belize has a stable, democratic government and a stable and dynamic economy with a strong tourism sector.
Belize also has a lot of draws and appeal to property owners and real estate investors. In Belize, foreigners purchasing Belize land or property in Belize are afforded the foreign owners/investors have the same property ownership rights as Belize citizens. Belize is also a low-tax jurisdiction; there are no capital gains or inheritance/estate taxes in Belize.
There are a lot of appeals to Belize real estate – for residency and investment. Even though financing is not as readily accessible in Belize as in other countries, there are financing options owners, and investors have.
Financing real estate for residency/lifestyle or investment in Belize can be challenging through local conventional bank financing (if you are not a Belizean citizen or resident). However, for non-residents, there are creative ways to get financing. Below you can see some creative options to finance real estate in Belize:
Offshore Financing.
Owner Financing.
Co-Investing.
Advantages of Buying Property in Belize
Buying property in Belize can offer several advantages:
Affordable Real Estate: Compared to many other Caribbean or Central American destinations, property prices in Belize can be relatively affordable. This makes it an attractive option for individuals looking to invest in a second home, retirement property, or vacation rental.
Tax Benefits: Belize offers favorable tax benefits for property owners. There is no capital gains tax, inheritance tax, or property tax on undeveloped land. Property taxes on developed land are generally low, making it cost-effective to maintain ownership.
English-Speaking Environment: English is the official language in Belize, which eliminates language barriers for those considering purchasing a property. This factor makes it easier to navigate legal processes, communicate with locals, and participate in the local economy.
Political Stability: Belize has a long history of political stability and a democratic government. The country has a legal system based on English common law, providing a familiar framework for property ownership and the protection of individual rights.
Natural Beauty and Ecotourism: Belize is renowned for its natural beauty, including pristine beaches, coral reefs, tropical rainforests, and ancient Mayan ruins. Owning property in Belize allows you to immerse yourself in these stunning landscapes and capitalize on the country’s growing ecotourism industry.
Retirement and Second Home Destination: Belize is a popular retirement and second home destination due to its warm climate, relaxed lifestyle, and affordable cost of living. Owning property in Belize allows you to enjoy a laid-back Caribbean lifestyle, escape harsh winters, or spend quality time during vacations.
Growing Tourism Industry: Belize’s tourism industry has experienced significant growth in recent years, attracting visitors from around the world. This trend can make owning property in popular tourist areas a potentially lucrative investment, especially if you intend to rent your property to vacationers.
Diverse Culture and Expat Community: Belize is known for its cultural diversity and welcoming atmosphere. Its vibrant expatriate community allows you to connect with like-minded individuals from various backgrounds and enjoy a rich cultural experience.
Ease of Property Acquisition: Belize has relatively straightforward property acquisition processes, with a clear legal framework for foreign ownership. Non-citizens can purchase and own property outright, including beachfront and island properties, without the need for local partnerships or complicated legal structures.
It’s important to note that while there are advantages to buying property in Belize, it’s crucial to conduct thorough research, seek professional advice, and understand local regulations before making any purchasing decisions.
Options for Belize Real Estate Financing
As mentioned above, financing in Belize is more complex than in domestic markets. We do not have the same standard mortgages and bank financing people are used to in the USA or Canada. Most real estate transactions in Belize are cash sales.
You can get a mortgage or loan in Belize from the banks. The bank will charge a high-interest rate and require a larger down payment. Because of the conservative nature and banking policies in Belize, the banks are still at a stage where the interest rates are higher than off-shore purchasers are used to. Most banks in the US will not loan to an out-of-country real estate purchase. There are, however, real estate opportunities in Belize with seller or vendor financing. Due to the Belize real estate market conditions, most owners and investors go the route of owner/vendor financing.
Seller/vendor financing (if available) is straightforward. It is a non-recourse loan with the seller/vendor carrying the note on the property (similar to how a bank carries the note on a home mortgage in the US). You take complete control of the property when all parties sign the agreement and the down payment is made.
There are three ways for purchasers to receive financing for Belize real estate:
Local Belize Financing: Local banks in Belize do offer to finance land and/or property, though it is not easy (especially for foreigners). It is also important to note that the interest rates with Belize banks and terms for financing are usually higher than what people are used to at home. Local banks in Belize usually have much higher interest rates in the range of 10-18% interest with fixed terms of only 12 months. When you get financing from a local bank in Belize, the loan is closed every year and renewed at the new rate. When borrowing or lending from a local Belizean bank, it will be in Belize dollars, and most real estate transactions in Belize are in US dollars. Because most of the Belize real estate transactions take place with U.S. dollars, local financing is challenging. Local banks in Belize will also often only lend money to Belize residents or citizens.
Offshore or Domestic Financing: If you are not a resident or citizen of Belize and are looking for financing, you can borrow U.S. dollars through an offshore bank. In Belize, Caye International Bank is one of the only off-shore banks in the country. Interest rates with international banks in Belize are still much higher than people are used to in their domestic markets and are around 12% to 18%, and most offshore banks, when lending to people who are not Belize residents or citizens, require a high degree of collateralization with a high down payment (often 50%). Some people do acquire domestic financing in their home country through a line of credit or refinancing their home/mortgage.
Owner, Seller, or Vendor Financing: This is the most common way foreigners acquire financing for land in Belize. It is also far more common for someone to find land with financing than it is with a home or condo. Belize property owners and/or developers usually agree to property financing at better rates than the local banks. It is also very easy to qualify, as it is a non-recourse loan. The rates through seller or vendor financing are often less than what is available at local banks and financial institutions. Around Secret Beach, you are able to secure property with 20% down. Within Mahogany Bay, you can secure canal-front land with 25% down.
For more information on financing in Belize and Belize real estate opportunities with financing available, contact us at RE/MAX Belize.
Using a Self-Directed IRA or 401K
One way to manage costs, minimize the out-of-pocket investment, and ease the burden of taxation is to purchase real estate under a Self-Directed IRA or 401K. These structures are very easy to do in Belize and allow Americans to purchase an off-shore investment property using investment funds. The benefits of ownership under these legal entities include; access to capital for investment, and less taxation on capital gains, thus earning greater profits from the Belize real estate investment.
Real estate investors (from the US) can hold investment real estate in an IRA or 401K to gain access to capital (without paying high taxation) and reduce the tax exposure (as long as the investment capital has not been distributed to the IRA owner).
Under the IRS’s self-directed IRA rules, contributions to Self-Directed IRA accounts can be used to purchase real estate (commercial, residential, or raw land) inside and outside the United States. This allows investors to use Self-Directed IRA funds or a 401K to invest in Belize real estate.
However, contributions to offshore real estate IRAs are subject to additional rules. For example, while the property in your IRA can be rented to others, you can’t rent it out to your family. The property can also not be used for your own personal use (it has to remain strictly an investment).
Another advantage is that the rental income from an offshore Belize real estate investment through IRA is deferred and can be made tax-free if purchased using a ROTH IRA. Under this setup, you could, in theory, collect decades’ worth of rental income and not pay US tax. You only need to worry about taxes when you distribute the income from the property to yourself in the future.
Bank Financing in Belize
Bank financing options in Belize can vary depending on the specific bank and the type of property you wish to purchase. Here are some key points regarding bank financing in Belize:
Local and International Banks: Belize has both local and international banks operating within the country. Local banks include Belize Bank, Atlantic Bank, and Heritage Bank, while international banks like Caye International Bank also have a presence in Belize. These banks offer various financial services, including mortgage loans.
Mortgage Loans: Banks in Belize provide mortgage loans for purchasing residential or commercial properties. The terms and conditions, interest rates, and loan-to-value ratios may vary between banks. It’s important to research and compare multiple banks to find the best mortgage options that suit your needs. It is important to note that Belize Bank mortgages are typically in Belize Dollars, while most real estate transactions are in USD.
Eligibility Criteria: To qualify for a mortgage loan, banks in Belize typically require applicants to meet certain criteria. Often a borrower needs to have Belizean citizenship or residency status. International Banks can lend to foreigners, often requiring a minimum of 50% down. The requirements can include proof of income, employment history, creditworthiness, and down payment. The specific requirements may vary between banks, so it’s essential to check with the individual institution for their specific eligibility criteria.
Down Payment: Banks in Belize usually require a down payment for mortgage loans. The percentage required can vary, but it is typically around 50% of the property’s purchase price. It’s important to have the necessary funds available for the down payment when applying for a mortgage.
Interest Rates and Terms: Interest rates with banks in Belize are often higher than what investors are used to in their domestic markets. The interest rates and loan terms for mortgage loans in Belize can vary depending on the bank, the type of property, and the borrower’s financial profile.
Property Appraisal and Legal Process: Before approving a mortgage loan, banks in Belize often require a property appraisal to assess its value. Additionally, they may require a title search and legal, due diligence to ensure there are no liens or encumbrances on the property. These processes help protect both the borrower and the bank.
Currency: The currency used for bank financing in Belize is typically the Belizean dollar (BZD). However, some International Banks may also offer loans in U.S. dollars (USD), particularly for properties that cater to international buyers. It is important to note that most real estate transactions in Belize are in USD. Learn more about Belize currency.
It’s crucial to consult with a Belize real estate professional or financial expert who specializes in Belizean real estate or off-shore investing.
Advantages of Not Financing a Property in Belize
There are several advantages to not financing a property:
Avoiding Debt: By purchasing a property outright without financing, you can avoid taking on debt. This can provide peace of mind and financial security, as you won’t have monthly mortgage payments or interest to worry about. Being debt-free can improve your overall financial well-being and provide more flexibility in managing your finances.
Savings on Interest Payments: Financing a property involves paying interest over the loan term, which can significantly increase the total cost of the property. By paying in full upfront, you save on interest expenses, potentially saving you a substantial amount of money in the long run.
Ownership and Equity: Buying a property outright means you immediately become the sole owner with 100% equity. You won’t have a lender with a claim on your property or any restrictions on what you can do with it. You can make improvements, rent it out, or sell it without any restrictions imposed by a mortgage lender.
Simplified Purchase Process: Financing a property involves a complex process, including loan applications, credit checks, property appraisals, and legal documentation. By not financing, you simplify the purchase process. You can negotiate directly with the seller, avoid waiting for loan approvals, and potentially complete the transaction more quickly.
Lower Closing Costs: When financing a property, there are various closing costs involved, including loan origination fees, appraisal fees, and mortgage insurance. By purchasing a property outright, you can eliminate or significantly reduce these closing costs, saving you money during the transaction.
Increased Cash Flow: Without monthly mortgage payments, you have more cash flow available for other purposes. You can use the money for investments, savings, travel, or other personal goals. This increased cash flow can provide financial flexibility and the ability to pursue other opportunities.
Reduced Financial Risk: By not taking on a mortgage, you eliminate the risk of defaulting on loan payments or facing foreclosure. You have full control over your property without the potential stress and consequences associated with loan repayment.
It’s important to note that buying a property outright requires a significant upfront investment and may not be feasible for everyone. Consider your financial situation, long-term goals, and consult with a financial advisor to determine if purchasing a property outright is the right decision for you.
Buying Land in Belize for Less Than a Toyota Prius
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Founded in 2010 by Jubril Agoro, the Passport Heavy brand has grown from humble beginnings as a solo travel vlog into a highly recognized media brand and one of the most influential names in the travel content space.
Passport Heavy & Jubril Agoro fell in love with Belize (as many do) when they visited the Central America/Caribbean destination. After a decade spent journeying globally, Jubril made his first international real estate investment. In BELZE!
In the latest Passport Heavy video, learn the ‘why’ and ‘how’ behind the decision to invest in Belize. From the enchanting allure of Belize to the nitty-gritty of navigating the real estate process in a foreign country, the latest Passport Heavy video (see link below) unpacks it all.
The tourism sector (a significant contributor to the Belize economy) was significantly impacted by the COVID-19 pandemic, with global tourism hitting a standstill. In 2019, tourism accounted for over 46% of Belize’s GDP. Fisheries, the second-largest source of employment in Belize, was also heavily affected. But Belize has made a quick comeback in the post-pandemic economic recovery.
Belize Tourism
In Belize, 1/4 (one in four) people are employed in the tourism sector or associated with the tourism industry. With such a large contribution to the country’s GDP and employment, the tourism sector’s strides since the pandemic has led to a quick bounce back. Belize has been aggressively marketing and expanding its reach, adding new direct international flights, broadening its reach, and positioning itself as a convenient and safe destination for sunseekers, investors, luxury tourists, eco-tourists, fishing enthusiasts, and divers. Belize’s proximity to the US (North America), affordable travel options, and the fact that Belize is English-speaking helped regain visitors’ confidence and led to a resurgence in Belize travel and the tourism industry.
In 2022, Belize witnessed an impressive 69.2% growth in overnight tourist arrivals (over 2021), with 370,524 visitors. However, it’s important to note that these numbers still fall short of the pre-pandemic levels of 2019, when over 500,000 tourists visited Belize. Additionally, cruise tourism saw a significant rebound, with 615,021 arrivals in 2022, representing a remarkable 192.6% increase compared to the previous year, 2021.
In Q1 2023, Belize saw an even higher tourism uptick than the prior year, with the highest Q1 inbound overnight tourism numbers. In Q1, 2023, Belize saw 143,319, overnight tourists. This is a 46.5% increase from Q1 2022.
JetBlue Starting Nonstop Route From New York to Belize
There was a big announcement for Belize tourism this week! JetBlue (a U.S. Airline) will launch a new direct flight to Belize. Not only is this a new airline beginning routes to Belize, but it is also a direct flight from one of the largest international cities in the world… New York City!
The new route from JetBlue will operate year-round with direct flights from New York (JFK) to Belize on Mondays, Wednesdays, and Saturdays.
Belize has entered the world’s radar, and the popularity of Belize is growing. More-and-more travelers are coming to Belize to enjoy the tropical destination as more people discover the Caribbean beaches of Ambergris Caye, the local culture, and the Western Hemisphere’s largest barrier reef.
JetBlue is now offering non-stop service from New York for the entire year starting in December 2023.
Non-Stop Flights From New York To Belize
Starting December 6, 2023, JetBlue will begin offering non-stop service between New York’s John F. Kennedy International Airport (JFK) and Belize City’s Philip W. Goldson Airport (BZE). Year-round service will operate round-trip flights on Monday, Wednesday, and Saturday.
Scheduled flight times are the following (all times are local):
JFK to BZE: Departs at 8:29 a.m. and arrives at 12:14 p.m.
BZE to JFK: Departs at 1:30 p.m. and arrives at 7:00 p.m.
U.S. Cities with Direct Flights to Belize
With the new flight from JetBlue, 13 cities in the United States will now offer nonstop service to Belize. The latest flight route from New York will make JetBlue the 12th airline offering direct international flights to Belize!
New York City (JetBlue)
Atlanta (Delta)
Charlotte (American)
Chicago (United)
Dallas (American)
Denver (Southwest, United, Frontier)
Houston (Southwest, United)
Los Angeles (Alaska, American, United)
Miami (American)
Minneapolis (Delta, Suncountry)
Newark (United)
Orlando (Frontier)
Seattle (Alaska)
There are currently 21 cities and 7 countries with direct flights to Belize.
2023 Direct Flights to Belize
Belize Growth & Tourism
Over 68% of Belize’s overnight tourism arrivals are from the United States (according to BTB). Adding a direct flight from a city as large as New York significantly boosts Belize’s tourism.
Anthony Mahler, Belize’s Minister of Tourism, said, “This new route is a huge win for the government’s efforts to make Belize accessible to more US visitors.”
Belize is a country in Central America, bordered by Mexico to the north, Guatemala to the west and south, and the Caribbean Sea to the east. Belize is unique as it has the mainland which is Central America and the islands which are Caribbean. There are several ways to get to Belize, including:
Air Travel to Belize
Many major airlines offer direct flights to Belize City from several cities in the United States, Canada, and Central America. The Philip S.W. Goldson International Airport in Belize City is the main airport in Belize, with several airlines offering daily flights.
It is estimated that around 81% of all international tourists travel come through the Belize International Airport. In 2023 it is even easier to travel to Belize with more international direct flights flying to Belize and the Philip Goldson International Airport (BZE) than ever before.
The only international airport in Belize is in Belize City, which is BZE (PhilipGoldsonInternational Airport). The airport handles all the international air travel to and from Belize.
Below you can see all of the direct flights to Belize as of the start of 2023 and the corresponding airline;
Most of the direct flights are from major US travel hubs, including; Houston (IAH), Denver, Los Angeles (LAX), Atlanta, Chicago, and Miami (MIA). Belize also has direct flights from Canada (Toronto & Calgary). Belize also has international flights to popular Central American Destinations like Panama City, Cancun, Honduras, and Guatemala City.
Learn more about the direct flights to Belize below;
Belize is accessible by land from Mexico and Guatemala. There are several bus services that operate between Belize and these neighboring countries. It is important to check Belize visa requirements and border crossing regulations before attempting to cross the border by land.
Belize has 2 border crossings;
The Western Border (Benque Viejo Del Carmen)
The Northern Border (Santa Elena)
The Western Border (Guatemala & Belize)
Belize borders Guatemala to the West. Near San Ignacio, in the Cayo District, there is the Western Border. There is one main highway crossing of the border at Benque Viejo del Carmen, Cayo District, Belize, and Melchor de Mencos, Peten, Guatemala.
The Northern Border (Mexico & Belize)
The Northern border is an international border between the countries of Belize and Mexico. Currently, there are two official crossings at the border, which are international bridges. The main bridge is located between Subteniente Lopez, Quintana Roo, Mexico, and Santa Elena, Corozal District, Belize.
Sea & Water Travel to Belize
Belize is a popular destination for cruise ships, with several major cruise lines offering stops in Belize City and other ports throughout the country.
Fort Street Tourism Village is the original Belize cruise ship port. The Fort Street Village port has several courtyards, snack bars, and local stores with duty-free shopping. Several restaurants offer authentic Caribbean, Belizean, and international cuisine, and there is often live local entertainment. The Fort Street Village Cruise Port is located in Belize City and is the most popular cruise ship terminal in Belize.
Harvest Caye Cruise Port
Harvest Caye is a newly opened docking port in the southern Stann Creek District (near Placenecia) that currently caters to Norwegian Cruise Line passengers.
Port Coral Cruise Ship Port
The Government of Belize has started a new “Cruise Ship Docking Facility” (passenger terminal) in Belize City. The new cruise ship port will be called “Port Coral”. The development project also includes building a resort and theme park on Stake Bank Caye – an island located approx 5 miles southeast of Belize City.
Named Port Coral or Stake Bank Cruise Ship Docking Facility. The new “Stake Bank Cruise Ship Docking Facility” or Port Coral will be 25 acres and have a docking capacity of 4 liners. Along with the 4 liner docking stations, the new terminal complex also includes a 60-slip yacht marina.
Construction at Port Coral, a new cruise ship docking facility is well underway and expected to open in 2022.
Water Taxi
There is also a water taxi and ferry service which goes between Chethumal, Mexico, and San Pedro Town on Ambergris Caye.
Belize has many beautiful areas and destinations. Each with its own uniqueness. With a diverse landscape of islands, beaches, and jungles, there are a lot of great places to own property in Belize. The best place to own depends on what a person is looking for. That said, you have options to choose from when considering buying property in Belize.
Belize has stunning white sand beaches, lush rainforests, and Mayan ruins, with the largest barrier reef in the Western hemisphere, Belize has recently emerged as one of the top emerging tourist destinations. Belize allows full foreign ownership, which makes it a popular offshore investment destination and a great place for buying property.
The growth in tourism has been accompanied by a dramatic rise in interest in Belize real estate. Belize has become one of the hottest places to invest, and retire in the region.
Some of the best places to buy property in Belize include:
Ambergris Caye
Ambergris Caye is a popular destination for tourists and expats, with beautiful beaches and a vibrant community. Ambergris Caye (and San Pedro Town) are the top tourist destinations in Belize. With that, it is the most popular location to own and invest in property. Ambergris Caye real estate is by far the most desirable property option.
Ambergris Caye is an island on the northeastern coast of Belize. Ambergris Caye is the largest island in the country and is the most popular tourist destination. Ambergris Caye is loved for its long sandy beaches, laidback island Caribbean lifestyle, and its proximity to the Belize Barrier Reef. A lot of Ambergris Caye has been set aside as a nature preserve, marine reserve, and national park, which adds to its appeal as the most popular destination for international buyers and people looking to own property in Belize.
San Pedro Town is the municipality on Ambergris Caye. San Pedro Town and the popularity of Ambergris Caye has it among the most in-demand and developed real estate investment destination in Belize.
Ambergris Caye is one of the most sought-after locations in Belize. Not only for tourism but also for property ownership. It is the undisputed top location. As the largest island in Belize, it has been ranked as one of the top destinations for retirement and investment by Forbes, International Living, MSNBC, and more. Ambergris Caye is famous for its proximity to the Belize Reef which attracts avid divers and fishers. The reef extends the East Coast of the island, and the West Coast boasts calm waters and beautiful beaches (like the popular Secret Beach).
Ambergris Caye also offers abundant options for different kinds of water-based activities, including scuba diving the Belize Barrier Reef, deep sea fishing, snorkeling, reef fishing, jet skis, paddle boarding, kayaking, and more. Ambergris Caye also has great restaurants offering fine dining options as well as an amazing expat community.
Ambergris Caye is commonly referred to as the “Isla Bonita” (which is “the Beautiful Island”). With all it has to offer, there are few who disagree that Ambergris Caye is one of the top choices for expats who were looking to relocate to Belize or investors looking to invest in an emerging island destination.
San Pedro Belize Travel Guide (on Ambergris Caye)
Placencia
Placencia is a town at the very tip of a peninsula located in the southern part of Belize in the Stan Creek District. Placencia is a small, peaceful village on the southern coast of Belize with stunning beaches and a relaxed atmosphere.
Placencia has grown over the years along the peninsula to include; Seine Bight, Cocoplum, Maya Beach, and Plantation. Placencia is an ideal location for buyers looking to enjoy a tranquil lifestyle by the beach.
Placencia is a picturesque village located in the Stann Creek District of Belize, situated on a narrow peninsula along the Caribbean coast. Known for its beautiful beaches, laid-back atmosphere, and vibrant local culture, Placencia is a popular destination for travelers seeking a tropical paradise. It is often ranked in the top 3 destinations in Belize (behind Ambergris Caye & Caye Caulker).
The Placencia Peninsula (which is made up of multiple municipalities) stretches for approximately 25 miles (40 kilometers) and offers stunning white sand beaches and crystal-clear turquoise waters. The village itself is charming, with colorful wooden houses, local shops, restaurants, and beachfront bars.
In addition to water activities, Placencia offers various land-based adventures as well as lush jungles and hiking trails in the area. You can explore the Cockscomb Basin Wildlife Sanctuary, which is home to the world’s first jaguar reserve and offers hiking trails, birdwatching, and the chance to spot other wildlife. Nearby Monkey River also provides opportunities for wildlife viewing, including howler monkeys, crocodiles, and a variety of bird species.
To reach Placencia, you can fly into the Philip S. W. Goldson International Airport in Belize City and then take a domestic flight to the Placencia Airport. Alternatively, you can take a scenic drive from Belize City, which takes around three to four hours.
Placencia Belize Trip
Caye Caulker
Caye Caulker is the smaller island that is just south of Ambergris Caye. Caye Caulker also sees a significant volume of tourists. Though the tourism to Caye Caulker is more backpackers with a number of local hostels. While there are many water sports, and activities similar to Ambergris Caye, Caye Caulker is becoming better known for its nightlife. This makes it a popular location for the younger crowd.
Caye Caulker is also located near the Belize Barrier Reef, which makes it popular for diving and fishing enthusiasts. The southern half of the island is mostly developed and the northern portion is separated from the town by “The Split” which is a narrow waterway that runs through the middle of the island.
Caye Caulker is a smaller island than Ambergris Caye which is known for its laid-back and relaxed atmosphere, Caye Caulker attracts tourists seeking a tranquil tropical getaway. The island is approximately 8 kilometers (5 miles) long and has a narrow width of about 1.6 kilometers (1 mile). It is characterized by sandy streets, colorful wooden houses, and a car-free environment. The main mode of transportation on the island is bicycles and golf carts.
Caye Caulker offers beautiful white sandy beaches and crystal-clear turquoise waters, making it a popular destination for snorkeling, diving, fishing, and other water activities. The Belize Barrier Reef, which is the second-largest coral reef system in the world, is easily accessible from the island, offering incredible opportunities for underwater exploration.
The island has a small but lively village area with restaurants, bars, and shops. The local cuisine often features freshly caught seafood, including lobster, conch, and fish. Caye Caulker is also known for its vibrant nightlife, with various bars offering live music and entertainment.
Caye Caulker Island Belize
Cayo District
Cayo is near the Belize & Guatemala border (on the westward side of Belize’s mainland). Cayo is home to many Mayan ruins as well as lush jungles. Cayo is a rural area with a growing expat community, offering beautiful scenery and a laid-back lifestyle. Cayo’s most popular municipality is San Ignacio but the district is also the location of the Belizean capital of Belmopan.
The Cayo District is located in western Belize near the border with Guatemala. Cayo is a district and is the largest district in the country. Cayo is known for its natural beauty, ancient Maya ruins, and outdoor adventure opportunities. The Cayo District is home to the town of San Ignacio, which serves as a gateway to the various attractions in the area. San Ignacio offers a range of property options around Cayo. There are real estate opportunities in the jungle, farmland, remote resorts, and more.
One of the main attractions of the Cayo District is its proximity to the Maya archaeological sites. The most famous and impressive among them is Xunantunich. Other notable Maya sites in the region include Cahal Pech, Caracol, and Tikal.
Cayo also has numerous rivers and waterways throughout the district. There are also countless waterfalls including; Big Rock Falls, Thousand-Foot Falls, and Butterfly Falls to explore and enjoy.
The Cayo District is also home to several nature reserves and national parks. The Mountain Pine Ridge Forest Reserve showcases stunning waterfalls, natural pools, and the unique pine forests of Belize. The Belize Botanic Gardens and the Belize Zoo are also worth a visit for nature lovers.
Exploring Cayo
Hopkins
Hopkins is a small fishing village on the coast of Belize with a close-knit community and beautiful natural surroundings. Hopkins is just north of Placencia near the town of Dangriga. Hopkins is popular for its small-town vibe.
Hopkins is primarily a fishing village with a laid-back and friendly atmosphere. It is very much a “small town”. The village is known for its strong Garifuna heritage, and visitors have the opportunity to experience the rich traditions and music of the Garifuna people.
The beach in Hopkins stretches for several miles, offering pristine white sand and clear turquoise waters. It is an ideal destination for swimming, sunbathing, and beachcombing. The warm Caribbean Sea is also a great spot for water activities such as snorkeling, diving, kayaking, and fishing.
One of the nearby attractions is the Cockscomb Basin Wildlife Sanctuary, also known as the Jaguar Preserve. It is a vast protected area encompassing lush rainforests, waterfalls, and hiking trails. The sanctuary is home to a variety of wildlife, including jaguars, howler monkeys, toucans, and many other species.
Belize City
Belize City is the largest city in Belize and the economic hub of the country, with a range of property options available. Belize City is a coastal city and the location of the Belize International Airport (Philip Goldson International) which is the only international airport in Belize.
Belize City serves as the commercial hub and principal gateway for international travelers arriving in Belize. As the economic and cultural center of Belize, Belize City offers a mix of colonial history, bustling streets, and a vibrant local atmosphere. The city has a rich and varied heritage, with influences from the Maya civilization, European colonization, and the African, Creole, and Garifuna cultures.
Although Belize City is not typically considered a major tourist destination, it does have some points of interest worth exploring.
Corozal
Corozal is the border town between Belize and Mexico and the northeastern shore of Belize.
Corozal is a town located in northern Belize, near the border with Mexico (close to Quintana Roo & the Yucatan Peninsula). It is a coastal town/region with Chethumal across the border on the Mexico side. Corozal Town is the capital of the Corozal District and is situated on the Bay of Corozal, which connects to the Caribbean Sea. Across the bay/lagoon sea is the island of Ambergris Caye.
Most people who looking at buying property in Corozal are very underwhelmed and often pursue something elsewhere. In Corozal, there are not as many opportunities for foreign investment. Corozal is on the bayside and is more of a border town between Mexico and Belize than anything. With this, you have a lot of logistics and supply chain traffic going through. Think of it as a tropical truck stop rather than an “off-the-beaten-path real estate investment”.
The town of Corozal has a rich history, with influences from both the Maya civilization and later European colonization. It was originally inhabited by the Maya people, and several archaeological sites, such as Santa Rita, can be found in Corozal. The town of Corozal was settled by Mestizo refugees from the Yucatan Peninsula in the 19th century, and today it has a mix of cultural influences from Maya, Mestizo, and other ethnic groups.
Corozal offers a more relaxed and tranquil atmosphere compared to the busier tourist destinations in Belize. It has a small-town charm and a welcoming community. The town has a central park, known as Corozal Town Central Park, where locals gather and socialize. You can find restaurants, shops, and other amenities in the town center.
One of the main attractions in Corozal is the proximity to the beaches. The Bay of Corozal provides access to the Caribbean Sea, and there are several beach areas where you can swim, sunbathe, or enjoy water sports. Some popular nearby beaches include Consejo Shores, Sarteneja, and Corozal Bay.
Corozal is also known for its proximity to Cerros, an ancient Maya site situated on a coastal ridge. If you’re interested in exploring the natural beauty of the region, you can visit the Shipstern Nature Reserve. It is a protected area with diverse ecosystems, including mangroves, wetlands, and wildlife.
To reach Corozal, you can fly into the Philip S. W. Goldson International Airport in Belize City and then take a domestic flight or a bus to Corozal. The town is also accessible by road from Mexico, as it is located near the Mexican border.
Best Place to Own Belize Property
Ambergris Caye luckily has something we like to call “Island Economics”. When investing in an island there is only so much land available. The limitations on available land create scarcity, not only scarcity of property but also scarcity of land. There is only so much land on an island. Island economics means that you see greater property appreciation on an island due to scarcity of property and limitations on how much can be built.
Areas and destinations on the mainland with nearly endless developable land rarely see the same level of equity appreciation. One of the difficulties of investing in a property that has nearly endless room for growth (the mainland) is the fact that developers continue to build, so real estate investors don’t see the same level of appreciation that they see on an island, where the availability of land is limited.
This is basic economics, Ambergris Caye has higher demand and less supply. Mainland destinations in Belize have less demand and nearly unlimited supply. On Ambergris Caye, you have far more amenities (with the reef 400 yards off the coast), as well as beaches on the East & West Coast.
In Belize, there are some cheaper and less expensive property options. That said, not all Belize real estate is created equal. One of the most famous quotes from Warren Buffett is, “Price is what you pay; value is what you get.”
It is important to conduct thorough research on the area and property you are considering and to consult with a qualified real estate agent to ensure that you are making a sound investment that meets your needs and aligns with your goals. If you are looking to buy property in Belize, contact RE/MAX Belize!