Closing Property in Belize: A Step-by-Step Guide

Background on Belize

Belize, formerly British Honduras, gained its independence from the United Kingdom on September 21, 1981. The country’s legal framework is rooted in English Common Law, and it is a member of the Commonwealth of Nations.

Purchase and Transfer Procedure

1. Offer to Purchase (Buyer initiates)
2. Contract for Sale (Seller completes)
3. Title Search (Buyer conducts)
4. Preparation of Transfer Documents (Seller prepares)
5. Closing and Transfer of Funds (Buyer to Seller)
6. Recording/Filing (Buyer handles)
7. Payment of Fees/Stamp Duty (Buyer is responsible)
8. Follow-Up with the Lands Department (Buyer ensures completion)

The buyer is accountable for the title search, property transfer, and all related expenses. Legal fees typically amount to 2% of the selling price, with a minimum charge and additional costs. Alternatively, buyers may choose to employ a closing agent (contact us for recommendations). Note that purchasing real estate from a resident requires prior notification to the Central Bank of Belize.

Stamp Duty Explained

Stamp duty, essentially a transfer tax on real property transactions, is structured as follows:

• Nationals (including Commonwealth Countries Citizens): 5%
• Non-nationals: 8%
• The first US$10,000 of the property value is exempt from stamp duty.

This tax is regulated by the Stamp Duties Act. Additionally, a 12.5% General Sales Tax (GST) may apply to developed properties.

Capital Gains Tax

Belize does not impose a Capital Gains Tax.