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!
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.
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!
Belize is one of the most popular destinations for foreign investment in the region of the Caribbean & Central America. One of the main reasons Belize has become so popular is the fact that as a British Common Law country, there is full foreign ownership and foreigners (non-nationals) have the same ownership rights as locals. In Belize, you can own land outright (even as a foreigner) but it is still important to note that there are a few different ways to own property in Belize, and each form of Belize real estate ownership has its advantages. There are several ways to own property in Belize, including: Types of Property Ownership in Belize
Different Ways to Own Property in Belize
Fee Simple Ownership: This is the most straightforward way to own property in Belize. Fee simple ownership means that you own the property outright, and you have the right to use, sell, or lease the property as you see fit.
Strata Title Ownership: When you buy into a Strata Scheme you own your unit (shadow footprint over the land), plus a share in common property as described in your certificate of title.
Leasehold Ownership: This type of ownership grants the right to use the property for a specified period of time, typically 99 years. Leasehold ownership can be an attractive option for those who do not plan to live in Belize full-time or for long periods.
Co-Ownership: Co-ownership involves two or more people sharing ownership of a property. This can be a useful arrangement for those who wish to split the costs of ownership and maintenance.
Trust Ownership: A trust can be set up to own property in Belize. This can provide additional asset protection and privacy, as the property is owned by the trust rather than an individual.
It is important to consult with a qualified Belize real estate professional when considering any of these ownership options to ensure that you are in compliance with Belizean laws and regulations. Additionally, it is important to conduct due diligence on the property and its title to ensure that there are no liens, encumbrances, or other issues that could affect your ownership or use of the property
Owning Property in Belize as a Foreigner
One of the primary advantages to investing and owning in Belize is that foreigners can own a property outright with a fee-simple title. Belize is one of the only countries in Central America that allows foreigners to truly own property.
Belize recognizes the rights of non-nationals and the property ownership rights of foreigners. When you buy property in Belize (regardless of citizenship or residency status) you can own the property outright and your ownership rights are exactly the same as local Belizean citizens. Unlike other Central American countries and tropical tourism destinations, in Belize foreigners, who are not local to Belize, can buy a property outright with a fee-simple title (the strongest form of property ownership) rather than have to settle for leasehold ownership. With Belize’s British ties, Belize practices British Common Law and the ownership rights are very similar to that in the UK, USA, & Canada.
Another advantage of buying property in Belize is that you do not need to physically be in Belize to purchase a property, or to complete the property closing. Most real estate transactions in Belize are done remotely and the buyer does not have to physically be in Belize. This makes buying real estate in Belize as a foreigner especially easy and appealing.
There are different types of titles and ownership structures in Belize but are still good and all legal. When you buy property in Belize, you have a few options when it comes to the ownership structure.
Belize Real Estate & Property Ownership Options
In Belize, most land opportunities and detached single-family homes allow for fee-simple titles and have a physical copy of the title from the Belize lands department. Most condos or developments in Belize are owned with co-op shares or strata titles. Strata Title enables one to pass physical title to a ‘slice of air with a building in it’ without owning the land that is below it. An example of Strata Title would be purchasing and taking title to a 3rd-floor unit without owning the shadow footprint of the land below.
Many developers around Belize erroneously refer to their projects as ‘condos’ when they are not located in a new registration zone. It should be noted that true condominiums in Belize only exist in the New Registration zones where the Strata Act is applicable. If the ‘condos’ are not in the new registration zone then they should be referred to as ‘units’ or ‘residences’ and, in most cases, they will be titled via corporate share certificate(s).
It is also important to note that Belize has a lot of parallels to the US & Canada when it comes to real estate and real estate appreciation. Condos rarely see the same level of appreciation and most of the condo projects in Belize (especially presales) are co-op share ownership.
1. Fee Simple Title
Fee Simple Title is Freehold ownership, which is by definition;
A permanent and absolute tenure in land with the freedom to dispose of it at will, especially (in full fee simple absolute in possession ) a freehold tenure, which is the main type of land ownership. Fee-simple title is an interest in land. Land owned in fee simple is owned completely, without any limitations or conditions. This type of unlimited real estate is called absolute. A fee simple is generally created when a deed gives the land with no conditions, usually using the words like “to John Doe” or “to John Doe and his heirs”. (source)
In British Common Law, a Fee Simple, Freehold Ownership, or Fee Simple absolute is real estate in land or physical property and is of freehold ownership. A “fee” that is used as the basis for the title is a vested, inheritable, present possessory interest in land and physical property. A “fee simple” is real property held without a limit of time. This means absolute and permanent ownership of property under the governing common law.
A Fee-Simple Title and Freehold Ownership is the highest possible form of property ownership. There are also properties that are known as a “fee simple absolute,” which is without limitations on the land’s use.
As Mark Twain famously said, “Invest in land; they are not making any more of it.”
If you’ve bought land or a house in Belize, it’s likely you own the property outright with a fee-simple title. This is the strongest form of property ownership and means that you own the “real property”. The fee simple way of owning real estate is the most common type of homeownership in the USA & Canada. Belize is also one of the few countries in the region with fee-simple titles and full foreign ownership. The fact foreigners can own a property outright with a fee-simple title is one of the major draws and advantages of off-shore real estate investment in Belize.
When you buy land or a home in Belize you will receive a “fee simple” title to your property which gives you full and complete ownership, unlike some Central and South American countries where the title is held in trust by a bank or similar institution. Other countries will offer leasehold ownership to foreigners which means you only own the land/property for a set period of time.
Belize is part of the British Commonwealth and with that, Belize has a legal system that is based on British Common Law. This comes with fee-simple land and property ownership. Property purchasers can take title to freehold property in Belize.
The Land Laws of Belize and property ownership Laws of Belize are derived mainly from the Common Law and English Statutes of the 19th century. The Law of Property Act, Chapter 190 has a lot of similarities to the Real Property Act 1925 of England and are nearly mirror images of each other. Other relevant statutes and laws that Belize has used and implemented include the Registered Land Act, Chp 194 which is a statute that governs all land transactions in Belize.
2. Strata Title Ownership
It should be noted that true condominiums only exist in the New Registration zones where the Strata Act is applicable. This includes San Pedro Town, Seine Bight, and Belize City are the only locations that have true condos with Strata Titles. Strata Title enables one to pass physical title to a ‘slice of air with a building in it’ without owning the land that is below it. i.e.: one can purchase and take title to a 3rd-floor unit without owning the shadow footprint of the land below.
If a condo has strata title, it provides a higher level of ownership and is a true ‘condo’. In Belize, every property has an individual land title, when you purchase a home or land in Belize you receive a copy of the land title. When you buy a property with a fee-simple title you take possession of it when you purchase a house or a piece of land in Belize.
When you buy a property that is part of a strata title, you own your unit or condo. When you own a strata title property or condo, you have individual ownership over your apartment, unit, condo, or townhouse.
The Strata Titles Registration Act, Chapter 196, of the Laws of Belize, governs the issuance of titles to condominiums in Belize. These condo titles are referred to as “Strata Title”. The Strata Titles Act essentially enabled developers to construct condominium developments in Belize and to issue freehold titles to each unit created in those Developments.
Condominium structures in the Caribbean are very rarely high-rise buildings. They are commonly relatively small two to four-story buildings. This is largely due to building restrictions set by the CBA (Central Building Authority). Unlike large metropolis cities, the structures in Belize are rarely above 3 to 5 stories and are primarily used by vacationing foreign residents. Developments that offer Strata Titles are most commonly found in San Pedro, Ambergris Caye, Hopkins, and Placencia.
When a developer of a condo project applies for Strata Title, the titles of the various units are issued to the Developer and are put in the developer’s name. As each individual unit is sold, the developer transfers the strata titles to the new owners (purchasers).
A property or development in Belize can only apply for strata title when the unit is built or near completion. This makes it challenging to obtain Strata Title since most of the capital for investment is tied up in development. Because of the laws pertaining to Strata Title, and having to be at or near completion to apply (and the application takes time for approval), most condos or units offer co-op share ownership for presale, which can have risk. The tedious Strata Title process is why so many condos go the co-op share ownership route. If you are looking at buying a condo in Belize, we suggest ensuring the property at least has a strata title.
3. Leashold Ownership
In Belize, most residential real estate and land are owned on a fee-simple basis (this is similar to the US & Canada). This is not the case in most of Central America & The Caribbean where land and home sales are in leasehold ownership which are long-term leases with the national government or have layered trusts. Belize is one of the only countries in the region that offers full foreign ownership and fee-simple title.
Under the leasehold model, one party owns a property while the tenant can use the land for a set number of years. This is common in Costa Rica, Mexico, Panama, etc. Most countries in the region have restrictions on foreign ownership. This is not the case in Belize, where you truly own real property. Generally, Leases involved in these arrangements are usually long-term, typically lasting 55 years to 99 years or more.
Some owners may grant something called a “life lease” where the tenancy remains until the lessee passes away. This means the property itself can not be passed on or inherited. In that case, the property reverts back to the grantor.
If you enter into a leasehold arrangement, you’ll have to pay a fee to use the land, unlike fee simple ownership which requires no rent payments or renewals. With fee simple, you do not have to renew the lease as you own the property outright. With a fee-simple title, you own any home on the land forever. But with leasehold, when the lease ends, both the land and home will revert to the previous owner – unless you negotiate a new lease or renew the lease before the old one expires.
When you own a property with a leasehold property you only “own” the property or real estate for a fixed period of time. When you agree on a leasehold property, there will be a legal agreement with the landlord (sometimes known as the ‘freeholder’) called a ‘lease’. This tells you how many years you’ll have rights to the property. Ownership of the property returns to the landlord when the lease comes to an end or expires.
There are a lot of restrictions on foreign ownership in countries like; Costa Rica, Honduras, Panama, Mexico, etc. These countries often have leasehold contracts or require a trust to own real estate. That is not the case in Belize. Belize has no restrictions on what foreigners can own. There are some condo developments in Belize that are leasehold or co-op share ownership and usually use this structure if they’re bought through shared ownership or a co-op.
4. Co-Ownership Shares or Housing Cooperative
This ownership structure is popular and is known to North Americans as “Co-op”. This is the weakest form of ownership in Belize and the buyer does not have any form of title. There are numerous downsides to this form of ownership, mostly being that share certificates cannot be mortgaged by a lending institution, and insurance on the unit is challenging. A housing cooperative or “co-op” shares are a type of residential real estate option that is actually a corporation that owns the real estate.
The ‘owners’ within the development do not own their units outright. Instead of owning the units, each resident is a shareholder in the corporation based in part on the relative size of the unit or equity stake the unit that they live in has. A co-op share ownership in real estate is a way to own a primary residence, through the shares of the corporation. With housing cooperative or co-op share ownership owners own the shares, they however don’t own their units outright or the land itself; instead, each resident is a shareholder in the co-op.
Some co-op shares real estate options allow owners to sell their co-op shares (equity in the unit) in the open market, depending on the development. Often they have restrictive clauses that limit resales. This limits the liquidity of the property.
In Belize, when a condo appears to be cheap or “too good to be true” it is generally because they have co-op share ownership. Co-ops when it comes to real estate in Belize can be less expensive than homes or true strata title condos since they operate on an at-cost basis, collecting money from residents to pay expenses. Often padding additional profits to the developer.
Even though co-op share ownerships appear to be a great deal, they often come with more risk and a low level of ownership control. Before buying shares in a co-op ownership condo, be sure to check out the company’s financial situation and the fees involved.
A lot of presale condos use co-op share ownership. The resale is very difficult since the unit cannot be mortgaged and they are very difficult to insure in Belize.
5. Trust Ownership
In Belize, you can own property in a Trust. Which is commonly done through an IBC (International Business Company). Belize uses IBC laws as a form of asset protection. Trust ownership in Belize is commonly used in conjunction with an IBC (International Business Company). By using a trust to hold shares in the IBC, an additional layer of legal protection is provided for the owner of the property.
Trusts have become one of the dominant instruments to facilitate international finance and hold property internationally. The reason for setting up a Trust is that every individual or company has the desire to protect, preserve and enhance their wealth, and Belize has become one of the top destinations for international financial services looking to diversify a Trust investment. Belize real estate is a great means for realizing the goals of wealth growth, protection, and preservation. Belize allows the creation of a trust, except for a unit trust (for a co-op share ownership condo) and the trust ownership must be in writing.
The main advantages of Trust Ownership are as follows:
Saving on Inheritance Tax or Estate Tax: Even though Belize does not have any estate tax or inheritance tax, a country outside Belize may have enforceable taxes. Through a Trust or IBC, on death, the inheritance tax, normally assessed on the value of the shares, would generally be eradicated.
Asset Protection: Assets (like real estate) within a trust usually cannot be reached by creditors who might arise as a result of financial difficulties, litigation, divorce proceedings, etc.
Avoiding Probate: Through trust ownership, assets can be smoothly passed on to the next generation without disruption, substantial costs, delays, loss of confidentiality, etc.
Lifetime Tax Savings: During a lifetime, substantial income and capital gains tax advantages may result from setting up the trust.
Trust Ownership uses a Trust to own the property. A Trust is a specific legal relationship, that is used in British Common Law. By means of a Trust, the owner of certain assets (“Settlor”) transfers these assets to an independent other party (“Trustee”). The Trustee, in turn, is legally bound to maintain and manage these assets for the benefit of another person or group of persons (“Beneficiaries”).
The core principle of the Trust lies in the separation of the legal title (ownership) of the asset from the benefits derived from that asset. The control over the asset (right to dispose of) is also separated from the benefits derived from that asset.
IBC Property Ownership
There are different types of titles and ownership structures in Belize but are still good and all legal. When you buy property in Belize, you have a few options when it comes to the ownership structure. A lot of real estate transactions in Belize are through corporations and have property ownership in an IBC with fee-simple title. Owning a property in an IBC is still fee-simple full ownership with an added layer of asset protection and tax optimization.
When you buy a property in an IBC there is no stamp or transfer tax when a property is held in an IBC (International Business Company). When you buy a property, you own it outright. We have a lands department, which manages the titles of each property. I always suggest buying a property in an IBC or having a property put in an IBC (especially as a foreigner). There is no stamp or transfer tax when a property is in an IBC. If a property is not held in an IBC, there is an 8% stamp/transfer tax when you buy or sell the property as a foreigner or non-resident and a 5% if you are a resident or Belizean (or Belizean corporate entity). When the property is in an IBC, you don’t pay the stamp or transfer tax, you have an added layer of asset protection (if someone sues you in the US, they can’t touch your Belize asset), and you have improved liquidity when you sell the property and remove liability.
You own the IBC, and the IBC owns the property with fee simple title. The advantages are;
Tax optimization as you don’t have to pay stamp or transfer tax.
Asset protection.
Improved liquidity.
Faster transfer of ownership.
Ownership ambiguity.
If you are looking to get the most out of your Belize investment and have the best value when it comes to Belize real estate, we suggest buying land and owning a property with a fee-simple title. We also suggest using an IBC (whether buying a property in an IBC or having it put in an IBC). The most desirable thing about Belize real estate is the fact that Belize has full foreign ownership and foreigners (Americans & Canadians) can own a property outright with a fee-simple title. When you purchase a condo (especially something with co-op share ownership) you erode the largest value of buying and investing in Belize.
There are two types of Residency status in Belize. If you are looking for residency status in Belize you can apply to be a; Permanent Resident or Temporary Resident.
Permanent Residency is applied when a person (or persons) wants to make Belize their home and will be staying in Belize for a long period of time. The applicant has plans to reside and live in Belize.
Temporary Residency can also be granted to people looking for status in Belize and show they have invested in Belize. A temporary resident can be a person who has made a substantial investment in Belize (often Belize Real Estate) but due to commitments outside Belize cannot meet ordinary Permanent Residence restrictions.
Temporary Residence status is given for a period of only one (1) year and becomes renewable at the end of that given period. If someone is applying for the investment residency, they need to show every year that the investment has remained in Belize.
The “Temporary Investment Residency” allows investors in Belize to obtain residency if they show they have invested over $500,000 BZ ($250,000 US) in Belize. This is most commonly done through real estate. The reason it is called “Temporary” is that you have to show every year that the money has remained in Belize.
For persons applying for Temporary Residence in Belize, you are required to
Show evidence of investments in Belize valued at not less than five hundred thousand Belize Dollars – BZ$500,000 ($250,000 US)
Copy of Receipt of Acceptance (Provided by Immigration Department upon submission)
Completed Application form
Letter stating reasons for applying for Temporary Residence
Complete Copy of Passport
Police Record (From Belize)
Police Record from last country of residence (no longer than 6 months from date of issue)
A medical certificate, HIV, VDRL, and TB results
Evidence of place of residence in Belize, i.e., rental/lease agreement with a current utility bill showing the applicant’s name and same address OR property title with property tax assessment
Evidence of investments in Belize officially valued no less than $500,000bz and where available
Real Estate Ownership
Business bank statements
An official valuation of equipment and buildings to be used in business/investment
Company Registration Certificate
Articles of Association and/or Summary of Share Capital.
Trade license in Belize
Belize Social Security Registration
Belize General Sales Tax Registration – Belize Business Tax Assessment
Income Tax Letter
Recent Bank Statement (If Applicable) Statement must show transactions to Belize/banking activity in Belize
Marriage Certificate (If Applicable)
(3) Passport-size Photographs
Social Security Card (If Applicable)
Contribution History from Social Security or Declaration stating non-contribution and why.
Inclusion of Spouse
Complete Copy of Passport
Police Record (From Belize)
Police Record from the last country of residence (no longer than 6 months from the date of issue) 4. Medical Certificate, HIV, VDRL, and TB results
Income Tax Letter
Recent Bank Statement (If Applicable) Statement must show transactions to Belize/banking activity in Belize
Marriage Certificate
Letter of Financial Support
(3) Passport-size Photographs
Social Security Card (If Applicable)
Contribution History from Social Security (if applicable)
Inclusion of Children
.1 Birth Certificate Copy
Complete Copy of Passport
Police record (From Belize. (If the minor is 12+years)
Police Record from last country of residence (no longer than 6 months from date of issue if child 12+ years)
Medical Certificate (All minors), HIV, DRL, and TB results (If the minor is 12+ years)
(3) Passport-size Photographs
School Letter
Letter of Financial Support
Notarized Letter of Authorization/Consent from the parent not making the application and
Notarized copy of ID If not in Belize.
Belize is one of the easiest countries in the region to obtain residency. There are quite a few ways you can apply and get residency and the route will depend on your personal circumstances. When you land in Belize, you are issued a 30-day tourist visa. You can stay in Belize as long as you want as long as you renew the tourist visa.
Secret Beach on Ambergris Caye, Belize has been growing and developing fast, and with all the new development there has been even more momentum around the West Coast. Between new homes being built, exciting new communities, and announcements of high-end resorts, the West Coast is really at a tipping point! Because of this, we wanted to update you on everything happening at Secret Beach.
You can see a Secret Beach 2022 Video below;
Everything around Secret Beach (the beach clubs, bars, restaurants, boutique hotels, homes, etc.) happened between 2016 and now. With the recent announcements, the trajectory is starting to take off!
You can see the growth and development of Secret Beach in the image and video below;
Six Senses Resort & Residences
Secret Beach has become one of the region’s most popular beach destinations, and it is also starting to attract high-end developments, including the recently announced Six Senses Resort Belize!
Between the Six Senses, Ixchel Resort, Habitat Belize community, and the other upscale developments coming to the area, you will likely see equity appreciation and property prices rise because of it.
The recent announcement of the Six Senses resort has been the biggest news for the area since Leonardo DiCaprio purchased his island, Blackadore Caye. Six Senses is one of the top internationally recognized luxury hotel brands. It will also be the first official 5-star resort brand on the island of Ambergris Caye and will be located near Secret Beach.
Ix Chel Resort Wellness Resort
At Secret Beach (just north of the beach bars), you have a new upscale boutique resort nearing completion. Ix Chel Wellness Resort is well underway and nearing completion. It brings an exciting new vision and design to the west coast with a vibrant atmosphere. Both resorts will bring more restaurants and businesses to the West Coast, further propelling the desire to live and stay in the area.
You can see photo renderings of the project below;
Belize Secret Beach Real Estate Investment
Off-beach, there are dozens of new homes, with more being added every month. There are also quite a few exciting new projects and communities underway off-beach (within a mile of the West Coast). Our team at RE/MAX Belize is excited to share those with you so you can see how much is happening in the area and the new opportunities available near Secret Beach.
Secret Beach changed dramatically over the last several years (2016 to 2023), and the next 6-years will see an even more substantial leap forward. By 2028, it will see even more development as these are only the first few dominos to fall. The West Coast is really at a tipping point, and there are still opportunities to buy off-beach Belize land for under $50,000 with financing available. Whether or not you build/develop the land, the Secret Beach properties are an amazing opportunity to be part of one of the region’s top emerging destinations!
The property near Secret Beach has a huge upside with little risk. You own an asset in an appreciating market hedged against inflation for less than a bank account annually. The only cost of ownership is the $75 to $90 per year property taxes (paid annually in April). You own the land outright, with a fee-simple title, financing is available, and the cost of ownership is almost nothing.
You are able to purchase a property and build. Or just secure the land and ride the organic momentum that will drive real estate value up.
Our team looks forward to chatting with you and making your Belize real estate dreams a reality!
There was an upturn of 3.2% in the GDP figures in the third quarter of 2022, but the change is unremarkable.
Despite indications of growth in some economic activities, most economists suggest the economy will continue to slow for at least the next few months.
Financial markets and other investments in the US, including property markets, remain unpredictable, creating a demand for more tangible assets and the diversification provided by overseas real estate.
The Bureau of Economic Analysis readings for the third quarter showed a +3.2% change in the US GDP in the third quarter, compared to -0.6% in the second quarter. Despite growth in some economic activities like industrial production, retail sales, and job growth, many economists still fear the possibility of a lurking recession. Investors tend to turn to hard assets at times like these, and since the US property market faces a price slump, they look for overseas property opportunities. “There are many reasons why investors turn to overseas real estate,” says Luigi Wewege from Caye International Bank, “but one of the major reasons is seeking a haven from the type of economic volatility we currently face.”
Here are eight reasons to buy overseas real estate right now
1. Discounts Due to Currency Advantages
When buying with USD or another strong currency, you can buy much more property in a market abroad with a weaker currency. Currently, the USD is at historic highs, meaning enhanced spending power.
The current surge in the value of the US dollar is producing unexpected opportunities for property investors holding the currency in many overseas real estate markets. It’s at historic highs against the euro, the pound, and other key currencies.
2. Currency Diversification
Buying a house overseas allows you to gain the benefits of diversifying into another currency. Currency diversification through property enables you to gain the benefits of earning an income or equity gain of the property in that country’s money.
Buying with the current strong conversion rate for the USD can also mean that even if the property value does not increase in local currency, you will have appreciation if the exchange rates return to historical averages.
3. Cheaper Properties
Besides the advantage of currency savings, properties in many overseas countries are highly affordable compared to properties in many US beach towns. “Caye International Bank facilitates real estate loans in five currencies and low-interest rates, with negotiable amortizations and terms,” says Wewege.
4. Earn an Income
Whether you buy a second home or have your eye on investing some money, overseas real estate can generate an income that can help pay for the property running costs and create a nest egg in the local currency. Even if you plan to holiday at your overseas property, you can rent it out short term to others. Remember that most European countries have lower rental net yields for long-term rentals, but these increase with short-term rentals, especially in the coastal areas of the Mediterranean.
5. Privacy And Tax Advantages
Americans don’t have to report their personal or rental overseas property to the IRS. Therefore, your foreign property remains out of reach to lawsuits, your ex, and the US taxman. There are also some US tax advantages when you rent out the property. For example, the interest paid on your mortgage is deductible from your taxable US income, as is the cost of trips to check on your asset.
6. Diversify Your Portfolio
Investing some money on overseas real estate diversifies your investment risk because it’s in another market. But, as we said earlier, you also diversify your exchange rate risk and avoid liability risks.
7. Brings Residency Perks
If you want to fast-track residency to countries like Greece, Spain, and Portugal to access the Schengen Area, you can purchase a property as part of their Golden Visa Programs. In addition, some countries like Northern Cyprus and Montenegro don’t have a price limit on how much you can spend to receive residency.
8. Low-Cost Vacations
Besides investing your money wisely, buying overseas real estate means you can choose a place to holiday without adding expensive hotel stays. As a result, you can enjoy the benefits of holidaying (or even retiring) somewhere with a lower cost of living, and you can escape the cold winters of the US.
Final Take
As you can see, buying overseas real estate makes perfect sense right now, especially if you want to diversify your investments and create an income in another country. In addition, your investment can provide you with a dream holiday destination and a financially secure retirement. For more information on investing offshore and in Belize real estate contact RE/MAX Belize!
Buying Belize Real Estate is very easy and the process is much like in North America (USA & Canada). Belize is one of the few countries in Central America & the Caribbean where foreigners enjoy the same property ownership right as nationals in land ownership and tenure. When a foreigner buys property in Belize, they own it outright with a fee-simple land title. The preferred practice of owning Belize real estate is through a fee-simple title which is clear title freehold ownership.
Foreigners can own property in Belize as an individual or through a Belize Chapter 250 (Limited Liability Company) or with an International Business Company (IBC). A property (like Belize land) will have a title that would be issued by the lands department. Condominiums in Belize are purchased through a “Strata” title or co-op share ownership. There are a few types of property ownership in Belize and it is important to learn the differences.
Belize Real Estate Purchasing Process
The property purchasing process in Belize is similar to Canada or the US (countries with fee-simple titles). Before you purchase property in Belize or buy Belize real estate it is important to know and understand the process.
Belize Property Search
Before buying in Belize, make sure you know the area that is best suited for you, your lifestyle, and your investment goals. Check out the different areas and districts in Belize; Ambergris Caye, San Pedro, Caye Caulker, Cayo, Placencia, etc. Belize has a robust landscape from the island beaches of Ambergris Caye to the jungle mountains of San Ignacio. When searching for Belize property, decide what is most important to you; the beach, mountains, inland, river, etc.
Ambergris Caye real estate is popular due to the fact that the island and San Pedro Town is the country’s most popular destination with the highest level of growth. Let the Remax Belize team help you with your Belize property & Belize real estate search. We can help go over the different options and opportunities available in Belize.
There are a lot of opportunities in Belize and a diverse real estate market. In Belize, we do not have a formal MLS, so a real estate agent’s job is a little different. If you are looking at buying or investing in Belize, a Remax Belize real estate agent can help with the search.
Offer to Purchase Belize Property
After the Belize real estate search, and once you find the property you want to purchase, the next step is to put in an offer or draft up an agreement of sale. The real estate agent will require your full name and address to be able to draft up the agreement/offer.
Most real estate transactions in Belize are cash sales. That said, there are opportunities with financing available. Most real estate opportunities in Belize with financing available are through seller or vendor financing. Belize does not have the standard bank financing or mortgages people are used to in the US or Canada. If you are wanting to purchase Belize real estate with financing, talk to your agent and find opportunities with financing. Or include the financing terms in the offer/agreement.
When writing an offer or agreement, make sure you add any contingencies, clauses, or addendums you require. Or include details required for the closing and include any additional services needed for the property transaction to go through.
In Belize, we do not have traditional home Inspectors or property appraisals. If required, you can an hire engineer or trusted home builders to inspect the property of interest and write up a report. If you are purchasing raw land, you can request a copy of the land title and/or a property survey.
You are also able to purchase Belize real estate through a Self-Directed IRA or 401K. Be sure to let your RE/MAX Belize real estate agent know if you want to use a Self-Directed IRA or 401K when you are purchasing the property. After the agreement is signed by the purchaser and the seller, a color copy of your passport will be needed as well as a utility bill matching the address on the offer to purchase.
Escrow Down Payment or Deposit
If you are purchasing a property with financing, you will have to send the down payment to an escrow account or escrow agent. Even cash sale transactions it is suggested to use an escrow account and closing company.
After all the documentation is signed, everything will go to a Closing Company for the due diligence and transfer of property. When buying any property in Belize you want to ensure the process is done correctly. That includes initiating a title search and ensuring there are no liens or encumbrances on the property. When buying Belize real estate you also want to make sure that the seller is legally able to sell the Belie land.
The property history as well as corporate and IBC registration is also something that the Closing Company will take care of. A Closing Company will make sure past transfers of ownership were done properly and that the whole process is done correctly.
You also want the Closing Company to look over the proposed purchase agreement, making sure the information is correct and ensuring it’s in full compliance with the local and governing laws of Belize. A Closing Company is particularly important if you are choosing to finance a property with the seller because a payment processing company is often needed.
It is also common in Belize for a closing company to use an Escrow Agent and/or Escrow Account. This helps to protect the buyer and the seller during the real estate transaction. Since most real estate transactions in Belize are done in USD it is common for the Escrow Account to be in the US and with a US Bank account.
Real estate transactions in Belize are in USdollars and use a USescrow agent or account (a US account or US intermediary is needed for any transaction in USD). The closing costs are paid by the buyer. The seller is responsible for the real estate fee and commission. All money is sent to a USescrow and a closing company releases funds upon closing.
When an offer or sales agreement is submitted a down payment for escrow is required. If it’s a cash sale, it will be the entire balance on the property which will go to escrow during the closing process. If it is a financing agreement, the down payment (20% to 25%) will be sent to escrow during the closing process.
The closing costs are between 1% – 1.5% of the sales price. Due diligence consists of a title search and a company search if the property is in a company name. This is all handled by the Closing Company.
Property Closing & Transfer
Once all the legal processes and closing have been completed along with a title search and closing documents. The legal documents are signed by all parties and original copies are sent to the purchaser. With a financing agreement, the seller will carry the note on the property (similar to a bank in the US). If it is a cash sale agreement, all original documents will be sent to the purchaser (the new owner of the property).
If the property is not in an IBC there is a one-time Stamp Duty Fee of 8% paid to the Government of Belize (GOB). Stamp/Transfer Tax is a tax of 8% on the total sale price and the Government of Belize gives you the first $10,000.00 USD exemption. GOB reserves the right to reassess the Stamp Tax and if they feel you paid too little for the Belize property, if this is the case the purchaser will require you to pay the difference.
If a property is held in a corporate entity like an IBC all the shares will be transferred to the purchaser. IBC property ownership means there is no stamp/transfer tax and the transfer of ownership is much faster.
To learn more about the closing process for land and properties held in an IBC vs not in an IBC contact us at RE/MAX Belize. In Belize, you own a property outright with a fee-simple title. Foreigners have the same ownership rights as locals.
If you are interested in Belize property and/or buying Belize real estate, contact us at RE/MAX Belize! We are here to help with your Belize real estate search. We can help find your dream home in paradise or investment property in Belize!
Foreigners and Non-Belizeans are able to purchase land, real estate, and property in Belize. The full title of the land and property is granted to non-Belizeans just the same as it is given to Belizean nationals. Belize is one of the only countries in the region with fee-simple land title ownership and full-foreign ownership. Even though Belize has full foreign ownership and foreigners are able to own Belize land with a fee-simple title, there are a few types of Belize property ownership that buyers and investors should be aware of and not all types of property ownership in Belize are equal.
In Belize, when you buy land that has a title, the original or certified copies of Belize land documents registered with the Lands Department are issued as proof of ownership. The land title will have either the owner’s name or a corporate entity (like Chapter 250 or IBC). In Belize, for a land transaction to take place proof of ownership is required.
When buying Belize Real Estate, it is advised to work with a Belize Real Estate agent and Closing Company. When buying land or property in Belize the real estate agent will draft a formal offer of purchase or agreement of sale and present it to the land owner. The Belize real estate agent will require the full name and address of both the “Purchaser” and the “Seller” with the legal name of the property (Lot Number & Parcel Number). The property will have an identification number which is given by the Department of Lands and Survey Office. Standard land and real estate agreements include a property title search.
The Closing Company and Real Estate agent will request records for the land with the Department of Land and Survey. This office provides information on who the land title is registered to (the owners), whether it is held in a corporation or individual name, and checks if there are any restrictions on the use of the land. They will also ensure there are any liens or encumbrances on the property.
Belize Land Laws
Belize is a British Common Law Country and with that comes strong real estate ownership laws. The land and real estate ownership laws in Belize are derived from the Common Law and English Statutes of the 19th century. The Law of Property Act, Chapter 190 in Belize is based on the Real Property Act 1925 of England. Other relevant statutes and laws in Belize include the Registered Land Act, Chapter 194 (1977) which is a statute that governs all land transactions in Belize.
There are mainly two categories under which land in Belize can be classified. These categories include;
Declared Land
Undeclared Land
Declared Land transactions in Belize are much easier as the property itself already has a title issued. Transactions done on Undeclared Land have to be recorded at the Titles Registry and require a much longer process. If the land is “Declared Land” the title is registered at the Land registry. Most real estate transactions and property purchases are in “declared land” with a real and absolute title.
Belize allows for full foreign ownership and freehold property ownership. Property purchasers can take title to freehold property in Belize in three different ways. They are:
Deed of Conveyance
Transfer of Certificate
Land Certificate
Fee Simple Land Ownership
Owning land or Belize real estate with a fee-simple title is the strongest form of property ownership. A Fee-Simple Title and Freehold Ownership is the highest possible form of property and land ownership. It means that you own the property outright.
If you’ve bought land or a house in Belize, it’s likely you own the property outright with a fee-simple title. If you own a property with a fee-simple title you will have a physical copy of the land title from the Belize Department of Lands. A fee-simple title is the strongest form of property ownership and means that you own the “real property”. Belize is one of the few countries in the Caribbean & Central American region that allows for full foreign ownership with a fee-simple title.
In Belize, not all properties and real estate have “fee-simple titles.” A lot of condos will use Strata Title or Co-Op Share ownership which is a less desirable form of property and real estate ownership in Belize.
Belize Property Taxes
When buying land or property in Belize, you will be shocked to learn how inexpensive and cheap the property taxes are. Most property taxes are 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. For example, property taxes for land around Belize Secret Beach start at $75 per year. Property taxes in Mahogany Bay are $108 per year.
Property taxes in Belize are paid annually in April and are to be paid each year. Property taxes in Belize for land and real estate are assessed and determined by the Department of Natural Resources. Belize is a low-tax jurisdiction and the property taxes in Belize are some of the lowest of any of the Commonwealth countries. Property taxes in Belize are almost unbelievably low for most off-shore owners and investors.
Stamp & Transfer Tax
When buying a property in Belize Belizeans pay 5% of the purchase price in Stamp Duty or Transfer Tax to the Government of Belize. Foreigners and non-nationals pay an 8% Stamp Duty or Transfer Tax to the Government of Belize when buying real estate or property in Belize. This is why so many foreign owners and investors purchase Belize real estate in an IBC. When you buy real estate in Belize that is in an IBC there is no stamp or transfer tax. Learn more about owning Belize property in an IBC.
For more information on Belize Real Estate, Owning Belize Land, & Land Titling in Belize contact our team at RE/MAX Belize! We look forward to helping you with your Belize Real Estate Search!
Belize Real Estate is becoming more and more of a hot topic for Americans, Canadians & Europeans as more learn about the tremendous benefits of owning real estate in Belize. Whether it be for investment or lifestyle purposes, Belize stands out amongst other countries in the Caribbean & Central America region for several reasons. These are the cornerstones of relocation to the county and are as follows:
English Speaking
When you consider that 90% of the U.S. only speaks English, this is a huge benefit of Belize. People love the fact that when they go to their doctor in Belize they can communicate in their native tongue or when they go to fill out legal documents they can read them in English.
British Common Law
Belize is the only English-speaking country in the region, this is a direct result of British influence over the years. The British also left something else extremely beneficial behind, their legal system. Other countries in the region (Mexico, Guatemala, Costa Rica, etc.) adopted the Spanish legal system, Napoleonic Civil Law. When it comes to Belize real estate there is a key difference between the two. That is, with British common law there is full foreign ownership. When Americans, Canadians, or any foreigners for that matter invest in property they receive a fee simple land title along with their property and truly own it.
When you invest in property somewhere with Napoleonic Civil Law there are two-tier ownership rights where residents can own, but foreigners must do so through a corporation with local directors or other grey area strategies. This is not the case in Belize, where foreigners have full ownership under British Common Law.
Proximity to the U.S.
Belize is 750 miles from the nearest point in the U.S. and has direct flights from L.A., Miami, Fort Lauderdale, Denver, Dallas, Houston, Atlanta, Newark, Toronto, Chicago, & more locations being added. The flight from Miami is roughly an hour and a half making it very easy for Americans and Canadians to get down in a very short period.
Fun Fact: Belize is within five hours of 82% of the U.S.!
Below you can see the direct flights to Belize;
46% of Belize is National Park & Marine Reserve
One of the things about Belize that most don’t know is that the official name of the territory was changed from British Honduras to Belize in June 1973, and full independence was granted on 21st September 1981. Given that Belize as a nation is relatively young, it has had the opportunity to model policies and characteristics from other countries that it feels are beneficial to the country.
One of the biggest things Belize has done in this regard is dedicated 46% of its land to a national park and marine reserve, one of the largest portions of a country in the world to be a national park. Not only is this beneficial from an ecosystem perceptive, but it’s also highly valuable from a real estate investment perspective. When you put a 46% restraint on development, you increase scarcity, which as we all know leads to appreciation.
Property Tax
In Belize, there are no capital gains taxes and property taxes are extremely low compared to what many are used to in the U.S. and Canada. For example, property taxes on a 60’ by 75’ piece of land would be roughly $75 per year paid annually in April.
Tourism & Rental Market
Belize is going through a state of high nightly rental demand with increasing tourism (44% over the past 5 years) without an equitable increase in the supply of nightly and monthly rentals leading to increasing rental rates and higher returns for investors. 2019 was the all-time high in tourism that Belize had ever seen, and the trend is showing absolutely no sign of slowing as Belize’s tourism in 2022 rebounded strongly after the pandemic.
The Belize Real Estate Market and Tourism are also looking promising in 2023. In fact, with the airlines adding as many flights as they have in recent years, Belize is expecting the growth to not only continue, but increase. With 70-75% of all tourists who visit Belize going to Ambergris Caye (San Pedro) during their stay, Ambergris Caye is the standout location for relocation and investment.
Ambergris Caye Real Estate
Ambergris Caye is the largest island in Belize measuring 27 miles long. Ambergris Caye is located at the northern point of Belize’s coastline with the Belize barrier reef just off the east Coast. Ambergris Caye is the top tourist destination in Belize and sees hundreds of thousands of tourists visit every year. Here are some quick facts about Ambergris Caye;
The largest of all Cayes and Islands in Belize, Ambergris Caye is widely known as the “Jewel of Belize”.
Belize’s largest island is 24 miles long and 3 miles wide
70% of overnight tourism comes to Ambergris Caye
12 miles from the mainland
#1 tourism destination in Belize
One of the best-kept secrets in tourism-driven markets is the distinct correlation between the change in tourism numbers and real estate appreciation. As tourism increases, we tend to see a proportionate increase and appreciation in property values.
Baby Boomers & Belize Real Estate
As many of you may know (or maybe going through the process) more baby boomers are looking to relocate from the U.S. every day. About four million people will retire every year, as of 2014. From 2014 to 2034, about 80 million people are expected to retire. This equated to roughly 10,000 people retiring per day for 20 years. Obviously not all these people will choose to relocate however, according to an AARP life survey, roughly 28,121,000 people will be relocating outside of the U.S., and the area with the largest expected growth is the Central America & Caribbean Region.
When you factor in our list of retirement benefits (English speaking, Proximity, Legal System, Etc.) it is more than safe to say that Belize will receive its fair share of baby boomers. This is only leading to more scarcity in the rental market, as when baby boomers move down, they generally take inventory out of the rental pool as they will live in it year-round as opposed to previous owners who would rent the majority of the year. When you factor these aforementioned thoughts together, you have the “perfect storm” for rental rates to increase and investor returns to increase.
There are many other benefits when it comes to Belize real estate. For the most part, Belize is still underdeveloped and sparsely populated so there is still plenty of room for growth, and property values haven’t come near adjusting to where they should be given the growth in tourism we discussed in the previous section of this post.
Another benefit of Belize is its economic and political stability. The economy here in Belize isn’t a one-legged stool, there are many facets to the GDP including agriculture, energy, transport & tourism. The government has shown it is a pro-foreign investment country by facilitating the process for foreigners and even bringing in the QRP program to reduce the costs and expenses of relocation to Belize.
If you have any further questions on Belize and looking to buy Belize Real Estate we are happy to chat via email or phone, feel free to reach out to RE/MAX Belize to chat and discuss your Belize real estate goals in further detail and get all your questions answered.
