The Land Laws of Belize are derived mainly from the Common Law and English Statutes of the 19th century. The Law of Property Act, Chapter 190 is similar to the Real Property Act 1925 of England in many ways. Other relevant statutes include the Registered Land Act, Chp 194 (1977). There are two types (categories) of Land in Belize. (a) Undeclared Land (b) Declared Land Transactions (transfers) done for Undeclared Land in Belize have to be recorded at the Titles Registry. On the other hand, transactions done for Declared Lands are to be registered at the Land registry. Both Registry offices are located in Belmopan (Cayo District). The Law of Property Act also allows for acquisition of property to take place in the instance that one has settled on a land for more than 30 years. In addition to mere settlement, one has to have continuous undisturbed possession of land for 30 years. If the Supreme court finds that possession is established, they may issue a declaration of Title in respect of said easement, right or privilege to the individual putting forward the claim. Such claims are not prevalent; however, it is good to know that such acquisitions are possible. There are three different ways that property purchasers can take title to Freehold Property in Belize. (a) Deed of Conveyance (b) Transfer of Certificate (c) Land Certificate (a) Deed of Conveyance: It is the oldest form of title ownership by a Deed of Conveyance. Ownership by way of conveyance is a registered right to ownership of property. Ownership by conveyance can be converted to a Certificate of Title via an application for first registration. The subsequent buyer is issued a Transfer Certificate of Title. However, a Deed of Conveyance is a valid legal title once an attorney has confirmed that the seller has good title to the property. (b) A Transfer of Certificate: This type of ownership is secure. A Transfer Certificate of Title is a physical title to a particular parcel of land. It is more costly and time consuming to transfer title on a Transfer Certificate of Title than Deed of Conveyance. (c) A Land Certificate: This is an absolute title and applies to property purchases in new or specially designated areas. The Government is in the process of re-registering all freehold lands under the Registered Land Act of 1987 to achieve an eventual uniform system of nationwide land ownership. However, this process is very time consuming as surveying is not yet completed. For further information You can read all the laws of Belize at www.belizelaw.org or contact us.
There are basic minimum costs, which must be met by both parties when it comes to property transfers in Belize. These are: Stamp Duty, Property Taxes, Recording of Registration Fees, and the Real Estate Company Expense. The property taxes are to be incurred by the sellers only. Most of the cost incurred by the purchaser applies to property recordings, registration, leases, mortgages and miscellaneous charges. When purchasing property in Belize there are certain things to take into account: a) Stamp Duty is a 5% charge on the declared purchase price of the property b) Registration Fee: $15 Bz dollars for the Title Document c) Title insurance : when purchasing property in Belize, Title Insurance is not necessary. d) Capital gains tax : there are no capital gains tax in Belize. Other services that may bear additional charges based on the request of the purchaser includes: (a) Title search, (b) Valuation report, and (c) Registration of new mortgage
Property Exchange or Transfer When properties are sold or exchanged, the Department of Natural Resources charges a certain percentage per transaction. Purchase of Land by Non-Belizean – 1. Non-Belizeans pay 5% of the Selling Consideration as a Stamp Duty or Transfer Tax to the Government of Belize. 2. Registration and fees are nominal – $30.00 BZ. 3. Lawyer’s Fee for Legal Services for Conveying property is approximately 1-2.5% of Selling price. 4. Closing cost for a Non-Belizean is between 8 and 10% of the selling cost. Purchasing of Land by Belizean – 1. Belizeans pay 5% of the Selling Consideration as a Stamp Duty or Transfer Tax to the Government of Belize. 2. Registration and fees are $30.00BZ. 3. Lawyer’s Fee for Legal Services for Conveying property is approximately 1-2.5% of Selling price. 4. Approximate closing cost for of Belizeans is between 8 and 10% of the selling cost. Attoreny Fees Attorney fees start at roughly 2% of the sale price. In most cases the attorneys are contracted to provide the deeds and contracts for the property transactions. Other Fees a) registration fees b) recording fee c) registrar general’s fee d) fees for the publishing notices in the Government Gazette. There is no capital gains tax or inheritance tax in Belize. TAXES When real estate is sold. a land transfer tax is levied on the transaction. It is usually the purchaser who pays the tax however, both the purchaser and the owner can agree to share a percentage. PROPERTY TAXES Property taxes are between 1-1.5% of the set value of the land and made by the Department of Natural Resources. Taxes are collected on the 1st of April of each year. SPECULATION TAX The Speculation tax was implemented in 2002. The tax is levied at 5% of the undeveloped value of the land set by the Department of Natural Resources, and applies to property 300 acres and more. This is to discourage speculation on large tracts of land and is meant to encourage development. TAX HOLIDAYS The Belize Government grants tax holidays and other concessions to encourage both local and foreign investment in Belize. Under the Fiscal Incentives Act of 1990, tax holidays can be up to 25 years depending on the nature of the business and how much of it is locally owned. iFoundBelize Realty can assist you to meet with the appropriate organizations where necessary. Foreign investors may repatriate 100% of their investments and profits provided that they register all foreign exchange brought into the country with the Central Bank. The Central Bank will require that you send audited financial statements annually to thier offices. A minimum of $250,000.00 BZD must be invested so as to qualify for tax concessions in the country. All applications must be submitted to the Ministry of Economic Development. Again, we can assist you in the relative processes involved.