Land Matters
Yes, foreigners can purchase land in Belize. Belize has a welcoming approach to foreign investment in real estate, and there are no restrictions on non-citizens buying property. Under Belizean law, land ownership can be held in various forms, including freehold, leasehold. Freehold title grants the owner absolute ownership rights over the land, while leasehold title allows for the temporary use of the land for a specified period under a lease agreement.
All purchasers of land or real estate in Belize are urged to seek the services of a competent Belize real estate attorney. Buying land in Belize, like any real estate transaction, carries certain pitfalls that prospective buyers should be aware of. One significant challenge is the potential for unclear land titles or disputes over ownership.
Having a title search conducted is therefore a necessity. It offers invaluable benefits to prospective buyers. Firstly, it provides essential clarity regarding the property’s ownership history, helping to confirm that the seller has legal authority to transfer ownership rights. Additionally, a title search can uncover any existing liens, encumbrances, or legal disputes affecting the property, allowing buyers to assess potential risks and make informed decisions. By obtaining accurate and comprehensive information about the land’s title status, buyers can avoid costly legal issues and ensure a smooth and secure transaction process, thereby safeguarding their investment and peace of mind.
Apart from the due diligence factors, purchasers of land in Belize should also be aware of the following costs associated with closing a land or property purchase (closing costs):
How much are closing costs?
Closing costs are divided into three components and are cumulative. These are:-
- Attorney’s fees
- Stamp Duty (payable to the Government of Belize)
- Incidental costs
Attorney’s Fees
Attorney’s fees are calculated at the rate of 2% of the purchase price or US$1,000, whichever is greater.
Attorney’s Fees include any or all of the following services (as required):
- Confirming that the seller is the legal owner of the property
- Drafting the Agreement for Sale, or in the alternative, reviewing the agreement for sale
- Performing a comprehensive title and judgment search
- Assisting with the removal of any charge or mortgage registered against the property
- Assisting with bringing any outstanding property taxes current
- Providing escrow services
- Drafting and overseeing the execution of land transfer documents
- Ensuring escrow funds are properly disbursed
- Lodging the land transfer documents
- Attending to the payment of the Stamp Duties
- Providing receipts for same to the client
Stamp Duty
Stamp Duty is payable to the Government of Belize (GoB) on all land transfers where the value of the land is more than US$10,000. It is calculated at the rate of 8% for a foreign purchaser (or a company with majority foreign-owned shareholdings), and 5% for Belizean residents, on the purchase price/assessed value of the land (less the US$10,000 deduction). The GoB has the discretion to assess the market value of a property at higher than the purchase price, at which point it may request the payment of additional stamp duties.
Incidental Costs
Incidental costs include for example the cost of couriering documents to the different parties.
Both foreigners and Belizeans are allowed to purchase land in Belize.
Please note that as of recent, the Lands Department is taking up to a year to complete a land transfer. We have no control over this.
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