Tashdayne K. Says:
What do I need to know about buying property in Belize? Things like financing and getting approved for a mortgage there.
IL Belize Correspondent Shane Kenny Says:
Hi Tashdayne,
Buying property in Belize is relatively straightforward. Unlike many other Caribbean countries, Belize uses Fee Simple titles… essentially meaning you have complete and total ownership of the land and the properties on it.
This differs from Leasehold titles more commonly used throughout the Caribbean, where you are simply leasing the property from the government and don’t actually own it.
Belize also allows non-residents to own land.
That being said, there are a few things to know before purchasing in Belize:
- You will pay an 8% “stamp duty” before the Lands Department transfers the title to you. While there are plenty of real estate agents who will claim to have a way around paying this 8% tax, it is best to just calculate it into your budget and pay it. The offset to this tax is that annual property tax here is so low most people just pay 3 to 5 years at a time to not have to mess with it.
- It is possible to purchase land in Belize without the expense of a lawyer. However, I recommend finding a reputable lawyer just to make sure the details are checked and verified. The peace of mind is worth the added cost
- It can take a long time to receive your physical title. It’s not uncommon to wait up to a year for it to arrive. This doesn’t prohibit you from taking possession of the property or building on it, it’s just something to be aware of.
- Financing does not really exist in Belize. Nearly all property is purchased with cash, or owner financing. If you are able to draw a home equity loan off your primary home this may be your best way to finance a purchase in Belize.
Finally, finding a good real estate agent to work with is key. They will help guide you through the process and work with your lawyer up through closing and beyond. The Association of Real Estate Brokers of Belize is a great place to start looking for an agent.
You can read a detailed guide to buying property in Belize in Chapter 3 of our guidebook Escape to Belize, available on the IL Bookstore.
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