Belize sits 12th out of 217 in our world ranking, with a FiScore of 9 out of 10. That puts it just behind Macau and ahead of the United Arab Emirates.
The number surprises people, because Belize is usually filed under "offshore company brochure" rather than "place to live". Both the score and the surprise have the same explanation, and it is worth setting out properly.
Why the score is what it is
| Tax | What Belize takes |
|---|---|
| Foreign-source income | nothing, whatever the amount |
| Business tax | 1.75% of local turnover for trade and general activity |
| Capital gains | none |
| GST | 12.5% |
Belize is territorial. Only Belize-source income enters the tax base, and that includes pensions, social security, annuities and investment income earned abroad. There is no remittance test: you can bring the money in and spend it locally.
The headline corporate figure you will see elsewhere is 25%. That is the income tax on profits, which most trading businesses do not pay: they pay the business tax on turnover, and for ordinary trade that is 1.75%. Our ranking uses the standard regime, which is why Belize scores where it does. The country page shows the full schedule.
The QRP, and the number that makes it unusual
The Qualified Retired Persons programme is the reason Belize belongs in a serious discussion rather than a brochure.
| Condition | |
|---|---|
| Age | 45 and over |
| Income | USD 2,000 a month from a foreign source, or USD 24,000 a year |
| Accepted currencies | USD, GBP, EUR, CAD |
| Application fee | USD 1,000 |
| Presence required | 30 days a year |
That last line is the one to read twice. Almost every residence programme in the world is built on the 183-day rule, which means giving up half your year. Belize asks for thirty days. Panama's Friendly Nations route asks for capital; Paraguay asks for a registration; Belize asks for a month on the beach and USD 2,000 a month.
A QRP holder is exempt from all Belizean tax on income from outside Belize. And since a recent change, a QRP member may also run a business in Belize, on condition of investing at least USD 500,000 and employing five Belizeans.
What the score does not tell you
Three things, and none of them is fiscal.
Thirty days is not tax residence anywhere else. Spending a month in Belize does not, on its own, get you out of the tax system you are leaving. If you keep a home, a family or a centre of interests in your old country, that country will keep taxing you, and Belize will not argue on your behalf. The QRP is a door in; it is not a door out.
Belize is small and its institutions are small. Banking is slow and expensive, correspondent relationships are limited, and a Belizean account can complicate your life elsewhere.
The offshore reputation is real, and it follows the country name. Belize has spent thirty years being sold as an IBC jurisdiction. That history does not stop you from living there, but it does mean that "I am resident in Belize" is a sentence you will explain to banks more than once.
Who it actually suits
Someone over 45, living on a foreign pension or portfolio, who wants a legal residence without surrendering half the year, and who is prepared to do the real work elsewhere: properly leaving the tax residence they came from. For that person, 30 days and USD 2,000 a month is one of the best offers in the world.
For a working founder, it is not: your business income would be Belize-source, and you would be back on ordinary rates.
Sources
- Territorial taxation and exemption of foreign income: Bright!Tax, Belize country profiles
- Business tax at 1.75% of turnover: Belize tax schedules, see our country page
- QRP conditions, 30-day presence and the USD 500,000 business option: Belize Tourism Board, Wrobel & Co. Attorneys-at-Law