Owning Belize Real Estate with an IBC 

You probably already know the advantages of making investments in offshore markets like Belize if you're considering buying or selling real estate in Belize. It may not be common knowledge, but establishing an International Business Company (IBC) to own your property or purchase a property already owned by an IBC has several advantages and is recommended when buying or owning real estate in Belize. Managing real estate in Belize is just one of the numerous responsibilities of an IBC.

Belize is one of the greatest low-tax countries in Central America and the Caribbean.The Caribbean is a desirable location to establish an offshore business. Despite recent changes in the tax code for IBCs, they still provide expediency an tax breaks when purchasing real estate in Belize. When you purchase or sell a property as a foreigner or non-resident, you must pay 8% stamp/transfer tax if the property is not held in an IBC; if you are a resident or Belizean (or Belizean corporate entity), you must pay 5%. You have an extra layer of asset protection (if you are sued in the US, the lawsuit cannot touch your Belizean asset), you don't have to pay stamp or transfer taxes, and you have better liquidity when you sell the property and absolve yourself of liability when the property is in an IBC.


Advantages of Owning Belize Property in an IBC

Beyond tax optimization, owning real estate in an IBC has other benefits. The acquisition of a Belizean property through an IBC has several advantages. The following are some benefits of owning real estate in an IBC, which is why we at Belize Property & Caribbean Land Development Corp. advise purchasing real estate this way: tax optimization due to the lack of stamp and transfer taxes.

Asset protection since it guards the assets you own in Belize.

1.) Increased liquidity while purchasing or disposing of real estate.

2.) Quicker ownership transfer.

3.) Respect the privacy and ambiguity of the owner.

4.) Even when a property is owned through an IBC, you still have complete foreign ownership rights to it. 

5.) Property is owned by the IBC, which has a fee simple title over you. Belize is currently among the world's most prominent hubs for international banking.

The goal of the IBC rules creation and enactment was to offer competitive rates for asset protection and tax minimization planning. Among the characteristics of an IBC are:

• Stamp duty and all other municipal taxes are not applicable to IBCs.

• Quick and easy registration and property transfer as well.

• It is necessary to have just one director and one shareholder.

• Minimal requirements for filing (articles of association, memorandum, and certificate of incorporation).

• Exchange control absent.

• Minimal registration cost for recently formed companies.

TAX RATES

• Trade/Business/Real Estate Sale/Lubricants - 1.75%

• Professional Services/IFSC Domestic FS Provider - 6.0%

• Commissions- 5% or 15%

• Rental/IFSC Financial Services Provider - 3.0%

Countries That Have IBCs

There are many offshore nations and jurisdictions that use and implement IBCs. In any jurisdiction with minimal taxes, they are a typical corporate organization. The following nations have IBC legislation, and you could be able to own real estate in Belize:

• Anguilla, Antigua and Barbuda

• Barbados

• Bahamas

• Belize

• Brunei

• Virgin Islands in Britain (BVI)

• Cook Islands

• Comoros

• Dominican Republic

• Grenada

• Gambia

• Mauritius

• Islands of Marshall

• The Montserrat

• Maurus

• Sacred Lucia

• The Samoan

• St. Vincent and the Grenadines

• The Grenadier

• The Seychelles

• Venezuela.

An IBC is an offshore business that is typically created as a tax-neutral entity, which means that neither the jurisdiction of incorporation nor the nation in which it was founded would tax it.

The Differences Between an LLC and IBC

In many ways, an LLC and an IBC serve the same purpose. Many ask themselves, "Why wouldn't I just use an LLC?" as a result of this.

What distinguishes an International Business Company (IBC) in Belize from a Limited Liability Company (LLC)? While an LLC and an IBC are fairly similar to one another, there are some distinctions in terms of ownership and management laws.

The primary distinction between the two is that in Belize, an IBC may be owned by shareholders as well as by a board of directors. On the other hand, an LLC in Belize functions similarly to a hybrid of an LLC and a partnership, with managers in charge of the business's management rather than shareholders. If the LLC's owner resides in the jurisdiction where the LLC is formed, the LLC will still be subject to tax responsibilities. Because of this, owning real estate in Belize with an IBC is significantly more preferable than with an LLC.

In essence, an International Business Company (IBC) is a private company (much like an LLC) that is formed in accordance with local regulations and utilized as an offshore corporate entity for conducting business in foreign markets and internationally. One of the many uses for an IBC is the acquisition and ownership of real estate.

The Belize International Business Companies Act establishes an IBC in Belize. Nevertheless, it happens frequently that a Belizean property is held in an IBC that is located outside of Belize. Belize is well known for having some of the most sophisticated and user-friendly IBC rules in the world in addition to a developing financial offshore infrastructure.

Purchasing real estate, creating bank accounts, protecting assets, and engaging in a variety of other international business transactions are all made possible by an IBC for foreign or offshore investors.  Although there are anual charges from $100-$1000USD, the advantages of asset protection, anonymity, tax breaks and reduced bureacracy are worth it.  Whether for real estae aquisition and or other business purposes, an IBC is a smart option.

If you're looking for a strategy to accumulate wealth both now and in the future, an IBC or owning Belize real estate in one is an excellent instrument. In addition to planning for the future, owning property and making use of an IBC also creates a framework for wealth preservation and overseas retirement. Get in touch with us if you have any inquiries concerning IBCs and owning real estate within one. We can assist you in finding the answers to your inquiries and making sure everything is ready for your offshore investment and real estate investment.