Verified Facts
The tax rates in Belize range from 0% to 25% for personal income, with a corporate tax rate of 25%, and a value-added tax (VAT) rate of 12.5%, making it a relatively low-tax jurisdiction for individuals and businesses.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Belize has a territorial tax system, meaning that only income earned within the country is subject to taxation, with some exceptions for certain types of income, such as foreign-sourced income earned by residents. To be considered a tax resident in Belize, an individual must have a permanent home in the country and spend at least 183 days in a calendar year within the country. Alternatively, an individual may also be considered a tax resident if they have a domicile in Belize, meaning they have a permanent home in the country and intend to reside there permanently.
The tax system in Belize is relatively straightforward, with a focus on simplicity and ease of compliance. The country has a small but growing economy, with a mix of agriculture, tourism, and financial services sectors. The government has implemented various incentives to attract foreign investment and encourage economic growth, including tax breaks and other benefits for businesses that operate in certain sectors or regions.
Personal Income Tax
| Income Bracket (BZD) | Tax Rate |
|---|---|
| 0 - 26,000 | 0% |
| 26,001 - 55,000 | 10% |
| 55,001 - 90,000 | 15% |
| 90,001 - 140,000 | 20% |
| 140,001 and above | 25% |
Personal income tax in Belize is relatively low, with a top marginal rate of 25%. Taxpayers are entitled to various deductions and allowances, including a personal allowance of BZD 25,000, as well as deductions for mortgage interest, charitable donations, and other expenses. Tax returns must be filed by April 30th of each year, and taxpayers can choose to file electronically or by paper.
Corporate & Business Tax
- The corporate tax rate in Belize is 25%, which applies to all businesses, including limited liability companies and partnerships.
- Small businesses with annual revenues of less than BZD 100,000 may be eligible for a reduced tax rate of 3%, under the Small Business Taxation regime.
- Belize has several free zones, including the Commercial Free Zone and the Export Processing Zone, which offer tax breaks and other incentives to businesses that operate within these zones.
- Businesses must register with the Belize Tax Service and obtain a tax identification number (TIN) in order to file tax returns and pay taxes.
- Companies must file annual tax returns by June 30th of each year, and must also make quarterly tax payments throughout the year.
VAT / Sales Tax
- The standard VAT rate in Belize is 12.5%, which applies to most goods and services.
- A reduced rate of 5% applies to certain basic necessities, such as food and medicines.
- Some goods and services, such as financial services and educational services, are exempt from VAT.
- Tourists may be eligible for a tax refund on certain purchases, under the Tourist Refund Scheme.
For Expats & Foreign Workers
- Expats and foreign workers are considered non-residents for tax purposes, unless they meet the residency rules outlined above.
- Belize has double taxation treaties with 13 countries, including the United States, Canada, and the United Kingdom, which can help to reduce or eliminate double taxation on income earned in multiple countries.
- Expats and foreign workers may be required to pay social security contributions, which are used to fund pension and healthcare benefits.
- Remittances to foreign countries are subject to a withholding tax of 25%, unless the recipient is a resident of a country with which Belize has a double taxation treaty.
- Expats and foreign workers may be eligible for a tax exemption on foreign-earned income, if they meet certain conditions.
- Expats and foreign workers must obtain a work permit or residence visa in order to work or live in Belize, and must also register with the Belize Tax Service.
Crypto & Investment Income
- Investment income, such as dividends and interest, is subject to a withholding tax of 25%, unless the recipient is a resident of a country with which Belize has a double taxation treaty.
- Cryptocurrency is considered a commodity for tax purposes, and is subject to capital gains tax when sold or exchanged.
- Investment gains from the sale of securities or other investments are subject to capital gains tax, which is taxed at the same rate as ordinary income.
- Taxpayers may be required to report cryptocurrency transactions on their tax returns, and may be subject to audit or penalties if they fail to comply with tax laws and regulations.