A guide to buying property in Belize

Property values here on Ambergris Caye have been on a steady, and steep, increase during the past 25 years or so. It seems that there is no end in sight to this trend, so any property bought today at a fair price will certainly be a good invesment for short, medium and long term planners.

Can I, as a foreigner, own property free, clear and outright in Belize? Yes, your right to own property is the same as a Belizean. You own it free and clear. You do not need any special permits, licences or the like. You pay a Government Stamp Transfer Tax when you buy, currently a little under 5% of the purchase price..

The very good news is that there is no Capital Gains Tax when you sell!

How do I make sure I am going to get what I think I am buying...in other words, how do I know the property has clear title? This is handled by your legal representative who can be a lawyer or a paralegal. He or she will do a "Title Search" which At Pelican Properties Ltd. we play our part by ensuring that any deposits paid do not pass beyond the Escrow stage until all paperwork is in order. This includes ensuring that the title for the property has been thoroughly researched and declared free and clear of all liens, judgements and encumbrances.

How many ways can I own a property in Belize? Basically, just two. The first way of owning property is you get title free and clear, either in your name or in your company's name. The property can be mortgaged with a lending institution. Titles, free and clear, are issued for land, houses, and true condominiums. Condominiums are surveyed and each condo gets a "Strata" title.

The second way of owning property is via. a Corporate Share Certificate or "Co-op." Co-ops are used when buying a condo or house within a planned community where each condo or house represents a share or shares of a company. We are seeing less and less of the Corporate Share Certificate kind of ownership these days but it's still around.

What other information might be useful?

1. Property prices in Belize are generally quoted in U.S. dollars.

2. Buying a property is fairly easy. From start to finish the process takes 30 - 90 days.

3. Some sellers offer financing. In most cases they will ask 9 - 12% interest. But, there is a slow trend towards lower interest rates being offered by sellers and recently we have seen rates as low as 7%.

4. As a foreigner you can get some financing in US dollars from Belize offshore banks. But, typically, the maximum you can borrow is 60-80% of the value of the property. Expect to pay about 10% interest, sometimes more, and, of course, the payments have to be in US dollars.

5. If you like a property and want to make an offer you do have to place an Earnest Money deposit with Pelican Properties Ltd. This is held in escrow for your protection. It can be as low as 1% and as high as 10% depending on the value of the purchase. We cannot submit an offer to the property owner without a deposit and of course the offer needs to be in contract format, something we'll draw up for you at the time.

6. The offer form is legally binding to both buyer and seller. There is always a proper due diligence period for the buyer included in the offer form.

7. At Pelican Properties Ltd. we will guide you through the buying process, always keeping you informed of progress.

8. You don't have to involve your US attorney in a typical Belize property purchase. Belize has experienced attorneys and paralegals to protect your interests. And, of course, your money will not be released to the seller until all the paperwork has been properly executed. Your U.S. attorney can preview any documents before you sign them but he'll be underworked. Offers and Agreements to Purchase are written in plain English and are very simple and to the point. Contrast that with the pages and pages of "Legaleeze" in a minature almost-impossible-to-read-without-a-high- powered-microscope documentation that each transaction in the USA or Canada seems to consist of. Don't get too "married" into using your U.S. attorney if you think you need legal advice..best to hire a Belize attorney as you're in his/her jurisdiction.

9. You do not need to be in Belize to buy or sell your property. Having said that, we strongly recommend you NOT buy property "sight unseen" in Belize. There have to be very special circumstances for us to recommend that this rule be broken!

10. Property taxes on Ambergris Caye are very affordable. For example, you might have a house or condo worth $300,000US or more. Your annual property tax will likely be under $400.00US.

11. Belize has very good property insurance. It is often referred to as "Fire and Allied Perils" insurance. One of the "allied perils" we have in Belize are hurricanes. Direct hits from hurricanes on Ambergris Caye are very rare. They can happen, though, but with proper insurance they should only be considered a "royal pain in the butt" rather than a financial catastrophe. Expect to pay as little as 1% of the insured value for concrete going up to as much as 2.5 - 5% of the insured value for an all-wood structure for 1 year of insurance.

12. When you purchase a property in Belize you do have to pay just under 5% Stamp Transfer Tax. This percentage is based on the value of your property purchase. If you bought a condo for $250,000US then the Stamp Transfer Tax will be around $12,500.00US. Note that when you sell the property you don't have to pay the Transfer Tax but the new buyer does. There is no Capital Gains Tax so your profits stay with you 100%.

After reading all of the above, why should I own property on Ambergris Caye?

1. It is almost certainly going to be a great investment.

2. You came to our island and loved it.

3. Paradise does not have to be "lost." You can own a piece of it!

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