In Belize, there is a property tax based on the value of a property. The property tax is usually paid annually and is calculated based on the market value of the property. The tax rate ranges from 0.75% to 1.5% of the property’s market value, with the rate being set by the local government.
Capital Gains Tax (CGT)
CGT is not applicable in Belize as there is no separate tax for capital gains. Instead, gains from the sale of real estate are included in the individual’s taxable income for the year and are subject to the standard income tax rate of 25%.
Inheritance tax is not levied in Belize.
Gift tax is not applicable in Belize.
Tax on Property Income
Income from renting out property in Belize is subject to income tax, with the tax rate being 25%. The income must be reported to the tax authorities and the appropriate taxes must be paid.
Tax Advantages in Buying a House in Belize:
- No Inheritance Tax: Since inheritance tax is not levied in Belize, there are no additional taxes that need to be paid upon the transfer of ownership of a property to an heir.
- No Gift Tax: The absence of gift tax in Belize makes it easier for individuals to transfer property ownership to their loved ones.
- Low Property Tax Rates: The property tax rates in Belize are relatively low, making it more affordable for property owners to keep their property.
Further Information on Taxes and Fees in Belize:
- The Government of Belize website (https://www.belize.gov.bz/) provides information on taxes and fees in Belize, including property taxes and other taxes.
- The Belize Tax Authority (https://www.belizetax.gov.bz/) provides detailed information on taxes in Belize, including tax rates and deadlines for tax payments.