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No Capital Gains Tax, No Estate Tax, A 1.75% Income Tax on Real Estate Rental Income
Properties in Belize
Investment
Why you should invest in Belize real estate?
There are many reasons why investors are choosing this Central America destination. Belize is the Caribbean’s Fastest Growing Market for Tourism & One of The Top Tourist Destinations In The World. With no Capital Gains Tax, No Estate Tax, And A 1.75% Income Tax on Real Estate Rental Income the return of investments is very clear. In addition to the stable economy the Belizean currency is tied to the US Dollar at a rate of 2:1 so there is no concern with fluctuating exchange rates.
Belize is only a few hours away from many cities in the U.S, and accessible via short directlights from many large population centers USA. Direct Flights: Atlanta, Houston, Miami, Denver, Las Angeles, Minnesota, Canadian Direct Flights: Calgary, Toronto.
Belize has a strong stable economy aside from tourism and although tourism in Belize is booming, it only represents about 30% of GDP. The top export of Belize is raw sugar, followed by bananas, and then fruit juice.
Belize is the only country in Central America with English as the official language. This is important, because when dealing with emerging/developing nations, especially in Central and South America, you don’t want to rely on someone’s translation for key documents you need to sign. English is the official language used for all real estate transactions, legal matters, and business contracts.
Belize is governed by British Common Law, which means real estate investors can have full property ownership with land title, and title insurance is available, just as in the US and Canada. There are no restrictions on foreign land ownership, and property rights are respected. Property is owned with fee simple title.
Top English-Speaking Retirement Haven in the Caribbean.
Demand
Drive
growth
#1
Number 1 Island In The World
#2
Among Top 10 Destination in Central America
#1
Among Top 25 Destinations in The World
1%
Fastest Growing Tourism Destination in Caribbean
1%
Increase in Overnight Tourist Arrivals
1%
Average Annualized Growth
tax rate on real estate rental income is 1.75%
Taxes in Belize are very favorable for investors.
The income tax rate on real estate rental income is only 1.75% and property taxes on most new properties are only a few hundred dollars a year.
Also, Belize possesses some of the strongest banking privacy laws in the world and has decided not to sign information sharing and tax treaties with the United States.
Privacy Protection, Hidden Assets in Belize
You may have read or heard me speak about the reasons buying property in Belize is a good choice compared to other countries. One of those reasons is for PRIVACY PROTECTION.
Certain countries are litigious. Certain professions are more litigious than others, which has people considering buying property worldwide using ENTITIES.
There are tax benefits for owning property in an entity. A lawyer or a tax advisor would guide you in understanding the benefits and how it would impact your situation.
If you would like a recommendation for a lawyer or tax advisor, contact us, and we’ll send you who we trust in our network.
different ways you can own your property
In Your Name – The most common way of owning property is in your name.
Foreign Limited Liability Company – This is another popular way to own property. A limited liability company (LLC) is a business structure in the United States whereby the owners are not personally liable for the company’s debts or liabilities.
Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.
own version of acceptable LLCs.
Each country has its own version of acceptable LLCs. You can own a US LLC and buy a property in Belize. You will need to register your LLC with the company’s registry. We help our clients with this step when needed.
Belize Chapter 250
This is Belize’s Limited Liability Company. We help our clients set these up through our legal team.
International Business Company
This is an International company. An IBC is an offshore company formed under the laws of some jurisdictions as a tax neutral company, which is usually limited in terms of the activities it may conduct in but not necessarily from the jurisdiction in which it is incorporated.
You can have an IBC that only owns the property. Belize is an excellent country to own an IBC, but a Belize IBC can’t own property in Belize.
Ask Us How
How Can You Buy Property in Belize
To buy property in Belize with an IBC, you would need an IBC from Nevis, Anguilla, Cypress, BVI, Hong Kong, and many other places. Each occasion has a different setup and annual fees.
No matter what way you own the property, there are different advantages to each of them and completely dependent on your personal situation, business type, and objectives and preferences.
For privacy protection, the LLC, IBC, and Chapter 250 are the way to go. If you do not have a US LLC, you would want to establish it in a State that will protect your privacy as an owner, like Wyoming and Nevada. Plus, these states and a few others have no State Income tax. These Entities will conceal your identity so that the IRS or a lawyer can’t go after your assets in Belize.
Buying property in Belize is easy and advantageous when you understand the different tax laws. Don’t let buying in a foreign country be a foreign experience. We are here to help.
As always, if you would like to ask questions about Belize and your specific situation, schedule a call and together we’ll figure out your next steps.
Why not park some cash
Business is doing very well right now with sales
Business is doing very well right now with sales. Many of our sellers are interested in offering seller financing. Check with your tax professional, but offshore investments can be a tax deduction. We have a webinar where we talk about this very subject. Watch How to Passively Invest to learn more.
start planning 2021 tax mitigation strategies
With tax season around the corner, it’s time to start planning 2021 tax mitigation strategies. We’re happy to jump on a call to see how we may help point you to the right professionals, whether for asset protection lawyers, CPAs, Gold and Silver Dealers, and Minors. Either one of my team members or I can turn your dream into a reality and help you buy your own property in Belize.
it’s important to have options
If COVID-19 has taught us anything, we’ve learned that it’s important to have options. Some options include a diverse portfolio, precious metals, or assets outside of your home country. Remember, working from home or in Belize is always an option too!
Interesting Facts Supporting Belize
Thе Саlіfоrnіа-bаѕеd Еthісаl Тrаvеlеr Mаgаzіnе hаѕ lіѕtеd Веlіzе аmоng іtѕ соuntrіеѕ mоѕt lіkеlу tо bеnеfіt frоm оur trаvеl dоllаrѕ іn а роѕt-раndеmіс wоrld.
Real Estate Syndication and Passive Investing
Have you ever heard people say they are passively investing in real estate? Those people have passive income.
You may be wondering what real estate syndication, passive investing and active investing means or how it all works. Maybe you even have some questions, including:
- Is it just for the rich?
- How can you invest passively, and what are the benefits?
- What is group investing or syndication?
- Those are great questions, and sometimes it can be a bit overwhelming at first, but I’m here to help…
So, let’s dive right in!
Active investing is just what it sounds like. An active investment is one you are actively managing. Here’s an example: You are an owner of a property, and you manage it in some form… maybe you’re managing the whole property, paying bills, setting up contractors to work on the property, managing the reservations on Airbnb, VRBO or any other OTA (online travel agency), etc. You are an active investor because you are doing the work to maintain the property and its value.Passive investing is when you invest in a property or another investment, and there is little to no effort to earn or maintain it.Since we are on the topic of real estate, a great example of passive investing would be if you own a resort or condo or if you’re an investor in a group investment, and they take care of EVERYTHING. That is truly a passive investment.
Syndications are used all over the world. The majority of the malls, apartment buildings and high rise buildings are group investments or syndications. Most motion pictures are as well.Yes… You can syndicate pretty much anything you want!
Real estate syndication is a way for investors to pool their money and intellectual resources to invest in properties and projects much bigger than the investor can afford on their own.
This was kicked into overdrive when The Jumpstart Our Business Startups Act passed in 2012. This is the same Act that helped to create crowdfunding.
First, a sponsor finds a deal and operates it. This investor would be the active investor. He/she invests their time, sweat equity and money in the deal. They find the property, manage the day-to-day operations, raise the funds and other duties as needed.
The sponsor usually invests 5-20% of the total required equity capital. Then, other investors put in between 80-95% of the total. These investments have a minimum investment around $50,000. For that investment, the investor can make a return on that investment, and normally they are paid quarterly.
Syndications are usually structured as a Limited Liability Company or a Limited Partnership. The Sponsor participates as the General Partner or Manager. And the investors participate as limited partners or passive members. Everyone who invests receives some share of the profits.
To learn more, watch our webinar on How to Passively Invest. You’ll enjoy hearing from our Securities Lawyer and CPA, and they both discuss the benefits of passive investments and how to use retirement funds to invest.
diverse portfolio
interested in what syndication is?
If you’re interested in what syndication is all about then check out The Real Estate Guys Radio Show’s Secrets of Successful Syndication Seminar. They host it twice a year, and the next event in March is sold out. However, join us at the following event this fall by getting on the advanced notice list here . Whether you are interested in being a sponsor or investing in a syndication, you can enjoy this seminar!Due to SEC rules and regulations with different deals, some deals can only be shared with accredited investors and others can be shared with anyone. We normally have two to three options for investors to choose. In order to learn what those options are or how you can join a syndication, you’ll need to consider your investment philosophy and your needs and wants related to your retirement plans.
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