FAQ
How much will I need to retire in Belize comfortably?
Retiring in Belize and associated costs can vary wildly based on a few things like location, lifestyle and even the foods and beverages you choose to consume. The quick and easy answer is that you can live comfortably on about 60% of what you currently spend.
The most expensive place to retire would be the Island of Ambergris, where a healthy Expat population currently resides in San Pedro and surrounding areas, and have driven prices on real estate to the highest in the country. Being an island, of course everything has an added cost of transportation in order to get to the market there, plus the cost of traveling back and forth to the mainland.
Costs on the mainland in the areas away from the sea, like San Ignacio and Belmopan, will generally be less for real estate and a little less for food. Belize levies a tax on imported goods, so the more you can live like a local the cheaper it will be. The coastal areas like Hopkins and Placencia, will cost somewhere in between the areas of San Pedro and San Ignacio, with Hopkins being the less expensive coastal village and Placencia a Iittle more. I have known people who can live perfectly well on $1500 per month, but $2500 seems to be the norm for couples who like to go out to eat a couple times a week and enjoy the natural activities of Belize like hiking, fishing, swimming and snorkeling. Comp[ared to coastal areas with similar climate in the USA, the cost for real estate is exponentially less expensive and prices are always on the rise in these communities.
Belize’s agriculture industry is the driving force of the economy besides tourism, so locally produced vegetables, fish, chicken, pork, beef and other farm products can be as much as half of the cost in the other countries.
Once you’ve found your property and developed it, your cost to live there is largely dependent on your lifestyle. If you need Jack Daniels, Campbell’s Soup and USDA imported steaks, you will likely be spending much more than the person who can enjoy the local rum, a cold beer and organic grass fed local beef on the grill, then you will find yourself living at about 30% less than your friends with the imported tastes.
There is the Qualified Retired Persons program established by the government to reduce the cost of moving here and includes bringing in a container of household goods, vehicles and even boats with no duty assessed, and you can qualify for this program with proof of only $24,000 USD annually. Exact requirements and costs for this program can be found here: https://www.belizetourismboard.org/programs-events/retirement-program/#1490202032346-1e76d79c-10c0
Do I need to be present in Belize to buy property?
The good news is that you don’t have to be physically in Belize in order to purchase any type of property. It’s possible to seek help from an agent who will act on your behalf. As your agent, we will look out for your interests and suggest capable law teams to represent you based on the size of the transaction, so you know you will be getting the best possible value for your fees.
Is this a difficult process?
Buying property in Belize is nearly the same as the US, as the British set up the laws for real estate the same as they did in the US.
Compared to real estate purchases in other countries, the process in Belize is simple. There is the need to establish proof of identity, confirm the availability of funds, and in general make sure that there are no questions about how the seller will be paid or who will own the property once the transaction is completed.
This is another area where having someone to act on your behalf is a good idea. Even if you happen to be in the country, someone who understands real estate laws and can manage the financial aspects for you is a good idea. Buyers can take advantage of using Tropicool as a Realtor, because we will direct you through the proper channels at NO COST TO YOU.
We are available throughout and after the sale and can recommend everything from lawyers to landscapers to building contractors.
Can I buy Belize Property with US dollars?
Currently, it’s possible to purchase properties in Belize with US currency. There’s also the option of making the purchase in Belize currency. The rate of exchange between the two currencies is constant. You can expect the rate to always be stable at two Belize dollars for every US dollar. We will recommend the best way to exchange funds based on individual needs.
Do I need a lawyer?
While it’s not required to have legal counsel who works specifically for you, it’s highly recommended. A real estate lawyer based in Belize can provide a number of services designed to protect your interests. For example, the lawyer can conduct a title search and ensure that the deed for the property is clear of any tax or other obligations. If there are any questions as to ownership, the lawyer can identify those and make sure you’re aware of them. We use a variety of legal firms in Belize, again based on individual need and the scope of the transaction.
Your legal counsel can also review all of the documents related to the sale. That includes the financial transactions, the registration of the new record of ownership, and even ensuring that you understand how and when property taxes must be paid.
How long does the process of closing take?
Several factors will influence how long it takes to close the sale. The type of property will have some impact since there are matters to address with commercial properties that usually do not relate to purchasing residential properties. If a bank or other public holiday takes place while the sale is in progress, that could delay things by a few days.
On average, expect the closing process to take somewhere between 30 and 90 days. Assuming there are no complicating factors to resolve, everything should be completed closer to the 30-day mark than 90 days.
How much will I pay for closing costs?
Many people are surprised to learn that closing costs in Belize are easy to calculate and are often lower than buyers expect. One of the reasons why the costs are so low is that Belize does not have any type of capital gains tax.
You will pay what’s known as a stamp tax. The tax is calculated based on the declared purchase price of your new property. Currently, the first $10,000 of that declared price is deducted from the total used to determine the stamp tax. Stamp tax currently of 2022 is at 8%, so if you paid $50,000 for your property, tax would be based on 8% of $40,000 or $3200.
In addition to the stamp tax, you will pay between 1.5 and 2.5% to a law firm to do a title search and ensure a clear unencumbered title, file the title and deliver the legal deed to you once completed by the government.
A safe estimate of the added cost to buyers then is 10% of the purchase price, including the stamp tax and all filing fees.
How much are the annual property taxes in Belize?
Another pleasant surprise awaits you when discussions of property taxes arise. You’ll find that most of the properties in Belize are assessed at an average rate of 1-1.5% of the unimproved value of the property. This usually equates to less than $50 annually unless we are speaking about large tracts of land.
Is there financing available?
Most people looking to borrow money to buy land or homes in Belize use some form of financing in the US, with one of the most popular ways to take a home equity loan on the property you might own in the US. Interest rates in Belize are high.
The other option is to find properties that are owner-financed or partly owner financed. Topicool Realty has been a leader in matching folks who want to sell with financing with buyers who are looking for financing. Let us know in initial contact that you are seeking a financed property, and we will see what we can find for you.
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