The fundamental investing rule is to spread your risk and diversify your investment portfolio. The phrase “don’t put all your eggs in one basket.” is one of the most common idioms when investing. The phrase is great fundamental investment advice that means that one should not concentrate all efforts and resources in one area as one could lose everything.
Diversifying an investment and assets is important if you want to minimize your risk, and exposure, reducing your financial vulnerability.
In a pursuit to diversify their investment, many investors decide to pursue offshore or international investments like Belize. There are off-shore investment opportunities across the globe, and there are a few mistakes people can avoid when investing off-shore.
When investing off-shore, Belize real estate stands out as a top destination with low taxation, strong property ownership rights, and a vacation rental market.
Belize is like foreign investing on training wheels; everything is in English, and Belize has full foreign ownership with British Common law (similar to the US & Canada). Belize real estate is one of the main focuses when it comes to investment in Belize. Below are some of the top reasons to invest in Belize;
- Belize has No Capital Gains Tax
- You Own Property Outright with a Fee Simple Title
- Belize has No Estate Tax (Inheritance Tax)
- Full Foreign Ownership
- Low Property Tax
- Low Corporate Tax
- Foreign Investment Incentives
- Capital Protection: How safe is the investment? In Belize, there is full outright ownership. Belize is also pro-landlord and does not recognize squatting rights.
- Capital Growth: The appreciation and gains of an asset. Belize is an appreciating market with property values increasing year-over-year.
- Yield (Cash Flow): Can you produce passive income from the property? In Belize, you can rent out a home or condo with ease. You have passive real estate income from vacation rentals.
- Favorable Taxation: Belize is a tax haven with no capital gains or estate tax. Property taxes and corporate taxes are also very low.
When you invest in Belize, you can meet all the offshore investment criteria. You also have the added benefit of limited supply and scarcity in a market with growing demand when investing in Ambergris Caye Real Estate.
Belize Real Estate has become a popular vehicle for offshore investment. Belize is a tax haven and low-tax jurisdiction, with no Capital Gains Tax, No Estate Tax, Low Corporate Tax, & Low Property Tax.
Being a tourism destination, Belize also has a strong vacation rental market which makes Belize Real Estate a high-yield, cash-flow-producing investment. Learn more about the reasons to invest in Belize below.
When making an off-shore investment, one of the first and most important things to consider is taxation.
Thankfully, when foreigners invest in Belize Real Estate and turn a profit they do not have to pay capital gains taxes or income taxes. Belize is a tax haven with no capital gains or estate tax. Corporate taxes are 1.75% for international companies and 3% for domestic companies.
Property Taxes in Belize are also very low at 1% to 1.5% of their assessed value. What is even more appealing is that property or land assessments are usually far less than the actual resale value.
In Belize, low government intervention and privacy for investors are highly valued. Belize does a lot to incentivize foreign direct investment.
When investing in Belize and buying Belize real estate, investors can rest assured that they will not be victims of serious government intervention, asset freezing, or having all their financial records published. You can also own property in an IBC for additional privacy and ambiguity.
For those who value privacy and anonymity, Belize real estate is the perfect investment.
Belize has full foreign ownership and foreigners and non-nationals have the same ownership rights as locals. When you buy a property or invest in Belize, you own the Belize land outright with a fee-simple land title (the strongest form of property ownership).
Belize is one of the only countries in the region that allow foreigners to own property with a fee-simple land title. The legal and property ownership laws are from Belize’s British ties as Belize practices British Common Law.
When investing offshore, you want to invest in a market that is in its infancy and avoid an overly-saturated market. Markets that are saturated have high competition. If you are investing offshore you will definitely want to look for a country that has a growing economy that is on the rise rather than on the decline.
In Belize, every year the number of international investors grows, and the economy is seeing significant growth from foreign investment and tourism.
Belize is also a net exporter and has a number of growth industries. This has led to GDP growth.
