BELIZE - FIRST CLASS TAX HAVEN
Posted by Roy
For regular viewers of this site you will know that we have had a series of articles about tax havens. So far in our research we consider Belize to be a first class tax haven. As with all the information on tax havens consult your financial advisor if you are considering a move to any of the countries mentioned.
Belize, previously known as British Honduras is on the coast of Central America, shares borders with both Mexico and Guatemala and is flanked by the Caribbean Sea. It gained independence from the British in 1981 and is the only officially-English speaking country in Central America. It is rapidly becoming the hot-spot for those seeking a tax haven. It has no Capital Gains or Inheritance taxes and has double taxation treaties with USA and UK. Further good news is that under recent legislation, you can obtain “Qualified Retired Persons” status (QRP) which is implemented by the Ministry of Tourism. Do not let the word “retired” put you off – read on!
To obtain this category, you must be at least 45 years old, provide proof of an income and an address in Belize although there is no requirement to rent or buy a property. You must provide proof of a minimum, monthly income of $2000, or deposit $24000 in a Belize bank. Unlike some countries, there is no required minimum length of stay in-country for permanent residents
Those showing proof of such income have the benefits of official residency for themselves and their dependents and are allowed to import a car, boat, household goods and even a light aircraft, tax free.
QRP’s are exempt from all Belize taxes on income generated from sources outside Belize, whether that income is remitted to Belize or not. Thus, although QRP’s cannot be gainfully employed in Belize you are able to direct foreign-based activities and still maintain your tax free status. This means that QRP’s are actually accorded the same status as an International Business Company, which is also free of taxes. An IBC must conduct its activities outside Belize and is not subject to statutory audits and returns etc. However, it can have an office in Belize and costs as little as $1000 to set up.
With the increase of “E-Commerce” via the Internet, almost any business could operate as an IBC and individuals who are not “retired” have the possibility to enjoy a tax-free life in Belize providing your assets and business activities are placed under the correct corporate structure.
Is this a tax paradise? Well, there are a couple of drawbacks. Belize is in the official hurricane belt and despite having modern hospitals you would have to travel to Miami or Mexico for specialist treatment. Apart from this though it is a beautiful country, great water sports, archaeological treasures, Mayan Temples, plenty to see and do, relaxing lifestyle and friendly people. Really what more could you want.
In conclusion, Belize’s location, political and economic stability, modern communications and benign tax regime places it in the top bracket as one of the world’s best tax havens. So for us Belize is a first class tax haven, probably the best we have found so far.
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