Taxes in Belize: the US Expat’s Guide

If you want to move to a country with stunning beaches, lush rainforests, and world-class scuba diving and snorkeling sites, Belize might just be right for you. Belize offers natural beauty, adventure, and a much lower cost of living than many expat hotspots. And if that weren’t enough, taxes in Belize are fairly low, too.

If you’re considering a move to Belize, it’s critical to understand the tax implications. We know how hard it can be to find accurate yet understandable tax information online — so we’ve put together a brief Belize tax guide. Read on to learn what the tax system in Belize is like, who has to file a return, how to minimize your tax liability, and more.

Snapshot of taxes in Belize

• Primary tax form(s): BTS203
• Tax deadline: March 31st
• Reporting website: IRIS Belize Online
• Administrative language(s): English
• US-Belize tax treaty? No
• US-Belize totalization agreement? No

Understanding Belize’s tax system & deadlines

Belize Tax Service (BTS) is the governing tax body in Belize, responsible for administering tax laws, collecting tax revenue, and assisting taxpayers. The BTS considers anyone who spends more than 182 days out of the year in Belize a tax resident.

Tax residents and non-tax residents alike are only subject to taxation on Belize-sourced income. If they have Belize-sourced employment income exceeding $26,000 BZD (~$12,902 USD), they must file a tax return (BTS203). 

Individuals with certain types of Belize-sourced income (e.g. dividends, rental income) or certain professions (e.g. director, consultant) may also need to file a business tax return (BTS100), even if their income falls below the threshold. Businesses incorporated in Belize with gross incomes above $75,000 BZD (~$37,216) must file business tax returns, too. 

The tax year runs from January 1st to December 31st, with tax returns due on March 31st. Taxpayers can submit returns online through the IRIS Belize Online platform or send a paper copy to their nearest BTS office.

Income taxes in Belize

Employment income tax rate

The government of Belize levies a flat tax of 25% on all Belize-sourced employment income exceeding $26,000 BZD (~$12,902 USD). The employment income tax rate is the same for both residents and non-residents. Certain types of income are exempted from taxation, however, such as: 

• Pensions or retirement payments from foreign countries
• Social Security payments
• Scholarships
• Interest from:
  • Belizean notes or bonds
  • Investments in certain industries or projects
  • Savings & term deposits

Given that many retirees can avoid taxation altogether, Belize is becoming an increasingly popular retirement destination.

Corporate income tax rates

Businesses based in Belize pay taxes on gross revenue exceeding $75,000 BZD (~$37,216) at rates that vary based on where the income comes from:

• Dividends: 15%
• Rents, royalties, premiums, and other real property income: 3%
• Professional, vocational or occupational: 6%
• Radio, television, newspapers, domestic airline businesses, gas stations: 1.75%
• Telecommunication services: 19%
• Financial institutions: 15% (if licensed under the Banks and Financial Institutions Act); 8% (within a PIC group) 
• Insurance companies: 1.75%
• Gaming establishments & casinos: 15%
• Real estate commissions: 15%
• Electricity utilities: 6.5%
• Other types: 1.75%

Churches, charities, and educational institutions are exempted from taxation. 

Non-resident withholding taxes 

Non-residents pay higher rates of taxation on certain types of Belize-sourced income: 

• Dividends: 15%
• Insurance Premiums: 25%
• Interest on Loans: 15%
• Management fees: 25%
• Rental of plant & equipment: 25%
• Technical Services: 25%

Taxes on these types of income are withheld at the source and must be reported on a business tax return.

Deductions, allowances, & other tax breaks

Personal 

The BTS offers different amounts of “personal relief” — aka personal allowance — based on income:

Income (BZD)	Income (USD)	Allowance (BZD)	Allowance (USD)
Up to $26,000	Up to ~$12,902	$25,600	~$12,703
$26,000 to $27,000	~$12,902 to ~$13,398	$24,600	~$12,207
$27,000 to $29,000	~$13,398 to ~$14,390	$22,600	~$11,214
Above $29,000	Above ~$14,390	$19,600	~$9,726

You can also claim certain personal deductions:

• Standard deduction: $100 BZD (~$50 USD)
• Charitable contributions: From $250 BZD (~$124 USD) up to ⅙ of your overall taxable income 
• Educational expenses: $400 BZD (~$199 USD) per child, up to $1,600 BZD ($794 USD)
  • Note: You can only claim educational expenses on children that are not your own. Your own childrens’ educational expenses are factored into the personal allowance

Business

Businesses can claim itemized deductions on:

• General Sales Tax (GST) collected
• Charitable contributions from $500 BZD ($248 USD) up to $30,000 BZD ($14,886 USD) per year
• Earnings replacement duty on fuel paid on importation
• Excise duty
• Supply sales by the quantity fuel importer to another quantity fuel supplier
• Funds received as an agent
• Accommodation tax

Other taxes in Belize

Property taxes

A few types of taxes related to the purchase, holding, and sale of property in Belize include:

• Property tax: 1% to 1.5%
  • Note: Certain municipalities charge different rates
• Transfer tax: 8%, with the first $10,000 USD exempted
• Speculation tax: 5% on undeveloped property of 300 acres or more

Social security taxes

Belize levies social security taxes at the following rates:

• Employees: 1.88% to 4.5%, capped at $93.60 BZD (~$46.45 USD) per month
• Employers: 5.5% to 8.13%, capped at $114.40 BZD (~$56.77 USD) per month
• Self-employed: 7%, capped at $89.60 BZD (~$44.46 USD) per month

VAT

The VAT in Belize — referred to locally as the General Sales Tax, or GST — is 12.5%. Most goods and services are subject to the GST, though some products are tax-free, including certain types of:

• Staple foods
• Utilities
• Healthcare supplies & medication
• Domestic appliances
• School supplies

Businesses with an annual turnover of $75,000 BZD (~$37,216) or more must register for the GST, apply it to relevant goods and services, and remit the proceeds to the government.

Estate, inheritance, & gift taxes

Belize does not have a tax in place for estates, inheritances, and gifts.

US taxes for expats in Belize

Due to the US’s citizenship-based taxation system, all Americans (both citizens and permanent residents) are subject to US taxes. This is true even for those who have moved abroad. Anyone whose income exceeds a certain threshold must file, and potentially pay, federal income taxes.

Expats don’t have to file their income tax returns until June 15th, thanks to an automatic two-month extension for Americans abroad. You can extend this deadline even further to October 15th upon request. However, anyone who owes taxes must still make an estimated payment by April 15th.

Americans who are also subject to taxes in Belize risk double taxation. The good news? Expats can often avoid having to pay taxes on the same income to two different countries with the right tax strategy.

Tax Breaks

Americans living abroad may be eligible for special tax breaks, which include the:

Foreign Tax Credit (FTC)

The Foreign Tax Credit, aka FTC, gives Americans dollar-for-dollar US tax credits on any foreign income taxes they’ve paid. While it tends to be less impactful in low-tax countries like Belize, it can still reduce your US tax burden. Taxes are eligible for the FTC if they’re legal, paid, based on income, and charged in your name. You can claim it by filing Form 1116.

Foreign Earned Income Exclusion (FEIE)

The Foreign Earned Income Exclusion, or FEIE, lets Americans exclude up to $120,000 of their foreign-earned income from taxation in 2023. In 2024, the FEIE limit increases to $126,500 to account for inflation. Note that the FEIE applies only to actively earned income like salary and wages — not to passive income (e.g. distributions, dividends, rental income).

To be FEIE eligible, you must meet the requirements of either the Physical Presence Test or the Bona Fide Residence Test. Doing so also qualifies you for the Foreign Housing Exclusion — a provision that can help you offset certain foreign housing costs (e.g. rent, utilities, parking). To claim the FEIE, file Form 2555.

Reporting obligations

Living abroad does afford expats some unique tax breaks, but it can also come with new or different reporting obligations. Two of the most common reports expats have to file include the:

• Foreign Bank Account Report (FBAR): Americans with more than $10,000 in total across all of their foreign financial accounts must file the FBAR, aka FinCEN 114
• Statement of Specified Foreign Assets: Americans with over $200,000 in foreign assets on the last day of (or over $300,000 in foreign assets at any point during) the tax year must file Form 8938
  • Note: These thresholds vary for married couples and Americans living within the US

Resources:

1. Belize Taxes: Everything You Need To Know
2. File Your Personal Income Tax Form
3. Belize Business and Income Tax Guide
4. Tax Regime – Business Tax
5. Guide to the Completion of the Employee Income Tax Form
6. Foreign Ownership in Belize
7. Contributions – Social Security Board, Belize
8. Self-Employed Persons – Social Security Board, Belize
9. GST Zero Rating: Other Supplies and Imports
10. Cost of Living in Belize (May 2024)