Added 10/12/07

Growth in Belize tourism boosts rental market

Belize’s tourism market is now the country’s second best money-spinner. The developing eco tourism now equates to 18 percent of the country’s income.
The growth in tourism means that the demand for rental properties is on the up and local agents have estimated rental yields ranging from 4 percent to 9 percent with an income tax rate of only 1.75 percent.

The government has also put in place some enticing incentives for local and foreign developers with emphasis on resorts, infrastructure and tourism services.
The fact that all business is conducted in English adds to the attraction of Fly2let investors.

Although the country borders Mexico and Guatemala, Belize has an English speaking populace, and up until 1973, was known as British Honduras. Belize gained independence from the British in 1981 but has retained its membership as a Commonwealth state.

An upsurge in tourist numbers has meant that property prices in Belize are rising steadily, but remains affordable. Property reports from local experts show a 15 percent annual increase in urban areas and a huge 30 percent along coastal areas. As a tax shelter, Belize also lends itself to a retirement market due to zero capital gains tax and inheritance tax, and extremely low property tax at 1 percent of the market value.

There are no restrictions on foreigners buying property in Belize and all negotiations and paperwork are in English. The only restrictions relate to the purchase of land exceeding half an acre within a town or city, or 10 acres within rural areas to which purchasers would require special permission.

Property investment prices are dependent on what you buy and where you buy it. For example, a small house in a rural community would cost from $5,000, and a village home approximately $15,000. However, a villa in a luxury beach resort could cost in excess of $500,000.