Guide to Property Taxes in Belize

Nonresidents are taxed only on their Belize-sourced income. Married couples are taxed separately.

Income Tax

Personal Income Tax

Income is classified according to sources and is taxed accordingly. Income tax is levied at a flat rate of 25%.

Non-residents who generate income from Belize must also submit a tax return. This applies to individuals earning income through employment, business activities, or rental and investment income from Belizean sources.

Taxpayers can claim expense allowance when they file their income taxes. The process is as follows:

1. Compute the total business taxes paid for the tax year.
2. Compute for the income tax payable, deducting income-generating expenses from the gross revenue.
3. Compare results. If the income tax payable is bigger than the business tax, the taxpayer doesn't have to pay the difference. If the business tax is greater, proceed to the next step.
4. Subtract income tax payable from business tax.
5. Use the difference as an expense allowance on the profit and loss statement when submitting the income tax return for the year.

Deductible income-generating expenses are as follows: repairs, property taxes, insurance, and mortgage payments.

Business Tax

Nonresidents receiving rental income pay a business tax of 3.00% on the gross rental income. Business tax is due monthly and is generally a final tax.

If taxpayers want to deduct income-generating expenses, they can opt to file an income tax return at the end of the tax year.

Capital Gains Tax

There is no capital gains tax in Belize.

Land Tax

Land tax is levied at a flat rate of 1% on all unimproved land located in Belize. Property owners are liable to pay this tax.

Buying and Selling Costs/Taxes

Property Holding Tax

Real Property Tax

A real estate tax is levied on properties located in Belize. The tax is imposed on the value of the property, with rates varying between municipalities, ranging from 0.75% to 1.50%.