Belize is a small country in Central America, the only whose official language is English. It is one of the region’s most popular residency options, especially with retirees. Thanks to its year-round warm weather, stunning scenery and accessible residency program, it is also starting to catch the interest of the location independent community. This guide covers how to acquire residency, how taxation works in Belize and how to open a bank account.
Residency options
In order to become the legal resident of a new country, you will usually need to apply and be approved for some sort of resident visa before you move. The application process will be complex and sometimes costly. In this respect, Belize is different. In order to become a resident, all you need to do is show up and pay a monthly extension fee (50 BZD for the extensions up to six months, 100 BZD thereafter) once your initial visa-free allowance has expired. Make sure to state to the immigration officer that your purpose is to stay long enough to qualify for permanent residency when visiting the Immigration Department office for your first extension. There are essentially two requirements, the first being that you must be able to enter Belize visa-free and the second being that you must be able to prove that you can support yourself during your stay (working is not allowed until you become a permanent resident). Plan on having access to at least 2000 USD per month (in most cases, however, no proofs will be asked by immigration). After one year in the country (50 weeks to be precise), you can apply for permanent residency (provided that you spent no more than 14 consecutive days outside of the country). There is no obligation to apply for it, however, and you could continue extending your stay on a monthly basis. I do recommend applying if you qualify as permanent residency will allow you to work locally, will allow you to leave the country for longer than 14 consecutive days and will also make it easier to open bank accounts, buy property etc. To apply, simply show up at the immigration office with the documents listed here and the fee for your nationality.
Visa runs and frequent visits
Visa runs make no sense in the context of Belize, as it is possible to extend a stay indefinitely without leaving the country. As for frequent visits, they are allowed for visa-free nationals.
Taxation
When it comes to tax optimization, Belize is a fairly interesting country. Thanks to its International Business Company (IBC) structure, a resident can run an international business tax-free provided that certain conditions are met. Companies operating within Belize can also be run tax-free, provided that they are based either in the Commercial Free Zone at Corozal or in one of the Export Processing Zones. There is a personal income tax, with a flat rate of 25% (the first 15000 USD or so is exempt and so is pension income).
Compliance
While IBCs are be exempted from filing a tax return, individual tax residents and special zone companies are not and must file on an annual basis. It is important to note that in order to qualify as a tax resident, you must spend at least 183 days in-country during a calendar year.
Powerful tax strategies
You can find powerful tax strategies in The Freedom Surfer course, especially in module two and three.
Banking
Belize has been trying to establish itself as an offshore banking centre for a number of years. There are plenty of banks to choose from and the selection of available products and services is decent. With that said, the quality of the banks simply does not compare to that of the US, Hong Kong, Singapore and most of the other major financial centres. The fees are also on the high side and reputation can be an issue especially when it comes to receiving payments from abroad. Overall, I would only recommend banking in Belize if you cannot open an account in a better jurisdiction or with one of the new digital banks (N26, Wise, Neat etc). Also, do note that Belize participates in the OECD’s CRS.
Opening an account
The easiest way to open an account is remotely, unless you are a permanent resident. You will need to gather A LOT of documents including reference letters from banks and professionals, a proof of address and two proofs of ID (hence why it is better done remotely, from your home country where you can easily source any additional documents the bank might ask for). All documents will need to be certified and mailed to the bank in Belize. You will also need to deposit 1000-10000 USD in order to activate the account.
