Belize Country Monograph

BELIZE COUNTRY MONOGRAPH

A Publication of Live and Invest Overseas

BELIZE COUNTRY MONOGRAPH

By: Roxana Lupu Published by Live and Invest Overseas Altos del Golf, Loma Alegre, Calle Los Tulipanes, Casa B1, Panama City, Republic of Panama

Publisher: Kathleen Peddicord

Copyright © 2011 Live and Invest Overseas. All rights reserved. No part of this report may be reproduced by any means without the express written consent of the publisher. The information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. www.liveandinvestoverseas.com

Belize Country[Escriba Monograph texto]

T A B L E O F C ONTENTS Government ...... 3 Economy and resources ...... 4 Climate ...... 4 Population and society ...... 5 Infrastructure ...... 6 Practical information ...... 6 Special benefits for retirees ...... 7 Cost of living ...... 7 Cost of housing ...... 9 Health care ...... 9 Taxes ...... 10 Territoriality and Residence ...... 10 Gross Income...... 10 Deductions and Allowances ...... 10 Tax Credits ...... 10 Other Taxes ...... 10 Tax Authorities ...... 11 Further Reading ...... 11 Recommended Resources ...... 11

Area: 22,963 square kilometers/8,866 square miles

Capital: Belmopan

Major towns/cities: Belize City, Dangriga, Orange Walk, Corozal, San Ignacio

Major ports: Belize City, Dangriga, Punta Gorda

Physical features: tropical swampy coastal plain, Maya Mountains in south; over 90% forested

Government

Head of state: Queen Elizabeth II since 1981, represented by Governor General Sir Colville Young since 1993

Head of government: Dean Oliver Barrow since 2008

Political system: liberal democracy

Administrative divisions: six districts

Political parties: National Alliance for Belizean Rights or NABR; National Reform Party or NRP [Cornelius Dueck]; People's National Party or PNP [Wil Maheia]; People's United Party or PUP [John Briceno]; United Democratic Party or UDP [Dean Barrow]; Vision Inspired by the People or VIP [Paul Morgan]; We the People Reform Movement or WTP [Hipolito Bautista]

Armed forces: 1,100, plus 700 militia reserves (2002)

Death penalty: retained and used for ordinary crimes

Defence expenditure: (% GDP): 1.4 (2009)

Education expenditures: (% GDP): 5.1 (2007)

Economy and resources

Currency: Belize dollar

GDP (US$): 2.65 billion (2010)

Real GDP growth: 1.5% (2010)

GNI per capita (PPP) (US$): 8,400 (2010)

Consumer price inflation: 4.1% (2010)

Unemployment: 13.1% (2009)

Public debt (%GDP): 40 (2010)

Major trading partners: U.S., Mexico, U.K., Cuba, Spain, China

Industries: clothing, agricultural products (particularly sugar cane for sugar and rum), timber, tobacco

Exports: sugar, clothes, citrus products, forestry and fish products, bananas. Principal market: U.S. 30.7% (2009)

Imports: foodstuffs, machinery and transport equipment, mineral fuels, chemicals, basic manufactures. Principal source: U.S. 33.65% (2009)

Arable land: 3.05%

Agricultural products: sugar cane, citrus fruits, bananas, maize, red kidney beans, rice; livestock rearing (cattle, pigs, and poultry); fishing; timber reserves

Climate

Belize's climate is classified as subtropical, with a cool continuous air stream flowing over from the Caribbean Sea. The annual mean temperature reads 79 degrees Fahrenheit, with highest summer temperatures rarely exceeding 96 degrees Fahrenheit and lowest winters hardly ever below 60 degrees Fahrenheit. Coastal towns and communities in the higher elevated regions of the country are normally cooler than inland regions like Belmopan, the nation's capital.

Annual rainfall figures are usually between 50 and 170 inches. The southernmost districts of Toledo and Stann Creek receive the highest amounts of rainfall. Traditionally, the rainy

season falls between June and November and the dry season between February and May. However, due to the recent changes in global weather patterns, habitual weather predictions are becoming less reliable. The average humidity is 85 percent, which is nicely balanced by the cool breezes coming in from the Caribbean Sea.

Belize climatological information:

Population and society

Population: 321,115 (2010)

Population growth rate: 2% (2010)

Urban population (% of total): 52 (2010)

Age distribution (% of total population): 0–14 36.8%, 15–64 59.6%, 65+ 3.5% (2010)

Ethnic groups: 48.7% mestizos, 24.9% Creoles, Maya 10.6%, Garifuna 6.1%, East Indians, Mennonites, Canadians and Europeans, including Spanish and British 9.7% (2000)

Languages: English (official), Spanish (widely spoken), Creole dialects

Religion: Roman Catholic 49.6%, Protestant 27%

Education: (compulsory years): 10

Literacy rate: 76.7% (men); 77.1% (women) (2000)

Labor force: 10.2% agriculture, 18.1% industry, 71.7% services (2007)

Life expectancy: 66.53 (men); 70 (women) (2010)

Child mortality rate: (under 1, per 1,000 live births): 21.95 (2010)

Internet users: 36,000 (2009)

Infrastructure

Airports: 45 (2010)

Railways: none

Roads: total road network: 3,007 kilometers, of which 575 kilometers paved (2006)

Roads in Belize vary from two-lane paved roads to dirt or gravel tracks. The few paved roads are high-crowned, which can contribute to cars overturning. There are few markings or reflectors. Even in urban areas, most streets lack lane markings, leading many motorists to create as many lanes as possible in any given stretch of street or road. Bridges on the major highways are often of only a single lane. The Manatee Road, leading from the Western Highway east of Belmopan to Dangriga, is mostly unpaved, easily flooded after storms and without services. The Southern Highway from Dangriga to Punta Gorda is now complete and in good condition. Service stations are available along the major roads although there are some significant gaps in the rural areas.

Practical information

Visa requirements: visa not required

Embassy in the U.S.: 2535 Massachusetts Avenue NW, Washington DC 20008; tel. (202) 332-9636

American embassy: #4 Floral Park Road, Belmopan; tel. (501) 822-4011

Chamber of commerce: Belize Chamber of Commerce and Industry, #4792 Coney Drive, Withfield Tower First Floor, Belize City; tel. (501) 223-5330

Office hours: 8 a.m.-5 p.m. Mon–Fri

Banking hours: 8 a.m.–12 p.m. and 1 p.m.-5 p.m. Mon–Fri

Time difference: GMT -6

Chief tourist attractions: beaches and barrier reef; hunting and fishing; Mayan remains; nine major wildlife reserves (including the only reserves for jaguar and red-footed booby)

Major holidays: 1 January, 9 March, 1, 24 May, 10, 24 September, 12 October, 19 November, 25–26 December; variable: Good Friday, Easter Monday, Holy Saturday

Special benefits for retirees

Ten years ago, the government of Belize enacted legislation to allow Qualified Retired Persons (QRPs) to obtain permanent residency in this country. In many ways, this program is the most efficient route to foreign residency anywhere in the Americas. And, while the QRP visa allows you full-time residency, you can enjoy the benefits of being a QRP even if you spend as little as two weeks a year in Belize. The only requirements are that you or your spouse be 45 years of age or older, that you consider yourself to be retired, and that you show that you have at least US$2,000 a month in income to support yourself in Belize (from a pension or some other regular income).

In practical terms, the "consider yourself to be retired" requirement means that, as a QRP, you can't apply for a work visa. This is not to say that you couldn't do international, Internet, or even local Belize business as an entrepreneur. You just can't take on traditional "employee" work.

Under these circumstances, the benefits of the QRP program could be significant, especially if you have active business income from outside the States. In this case, as a non- resident American, your first US$92,000 in foreign-earned income would be exempt from U.S. tax. And, again, as a QRP, you're also exempt from Belizean tax.

Cost of living

Living the simple life in Belize can help you stretch your hard-earned money. This is good news for anyone seeking a place to live that offers a high quality of life on a fixed income, but this may mean planning for a different future. Tourists may not experience these cost savings, but full- and part-time residents quickly begin to see the benefits. First, many costs are less than before. Second, your lifestyle is different. It’s less about keeping up with the Joneses.

The key to maintaining a low cost of living is getting to know the local vendors, farmers, and suppliers. We have several Belizean friends with higher standards of living than many "First World" residents. They purchase locally grown foods, which are far superior to the more expensive processed foods imported from abroad. They have more quality time with their family and friends because they can afford maids, cooks, and gardeners. They build their houses using readily available local materials and talent. If they need something that isn't on hand, they go to the Mennonites in Spanish Lookout who can fabricate just about anything for far less the cost of importing it. In Cayo you can enjoy a very fulfilling life for just over US$1,200 per month, if you own a house, buy locally and use the local resources.

Cayo Monthly Budget House Rental

Item U.S. dollars Remarks

Rent $600 HOA Fees $0 Property Taxes $0 Transportation $25 Occasional bus and taxi fares Gas $20 Used for cooking, monthly Water $55

Electricity $85 Average value, assuming seasonal variations

Telephone $75 Control line, monthly Internet $75 Cable TV $25

Household Help, fulltime $350

Food $200 Groceries Entertainment $75 Eating out, movies, bars, etc.

Homeowner's Insurance $0

TOTAL $1,585

House Ownership

Item U.S. dollars Remarks

Most places do not have HOAs. If they do, HOA Fees $100 dues are typically about US$100/month.

Most property taxes are less than Property Taxes $10 US$100/year. Large acreage and coastal properties are more.

Transportation $25 Occasional bus and taxi fees Gas $20 Used for cooking, monthly Average value, assuming seasonal Electricity $85 variations Water $55 Telephone $75 Control line Internet $75 Cable TV $25 Household Help, $350 Full-time Food $200 Groceries Entertainment $75 Eating out, movies, bars, etc.

Homeowner's Insurance $150

TOTAL $1,245

Cost of housing

Prices for a bit of sand on Ambergris, the most developed of Belize's islands, is affordable, but not super-cheap. Compared with most other Caribbean destinations, the price of real estate, including rentals, is not expensive. However, compared to most other destinations in this report, you wouldn‘t necessarily call Belize a bargain. On Ambergris you could easily spend over US$1-million on a comfortable beachfront mansion, but you can also buy a one-bedroom condo for as little as US$150,000, or purchase a two-bedroom unit for about US$250,000. Expect to pay rent of around US$1,000 in Ambergris and of around US$600 in Cayo (see the budget above).

Health care

One essential service in Belize that has been positively impacted by tourism and foreign retirees is the health care system. Primary, secondary, and tertiary care are offered through both public and private facilities. Fees are reasonable, most major insurance policies are accepted, and pharmaceuticals are readily available. Throughout the country, the government operates clinics and hospitals that cater to the local citizens. In addition, though, you'll find private clinics everywhere and private hospitals in Belize City, Cayo, Orange Walk, and Corozal. There is not yet a private hospital in southern Belize. The private facilities provide better quality care and are where foreign residents typically seek treatment. These are more expensive than the public facilities but still considerably more affordable than the cost of standard U.S. care.

Taxes

Territoriality and Residence

Personal income tax is charged only on income earned within Belize. Individuals residing in Belize for more than 183 days in the calendar year are not taxed on the first BZ$19,600 (US$9,800). On earnings over BZ$19,600 for those who meet the physical presence requirement and on earnings for those not meeting the requirement, income is taxed at the rate of 25%.

Gross Income

Employee gross income The rate of tax on chargeable income is 25%.

Capital gains and investment income None

Deductions and Allowances

Employees are allowed to deduct from their total income charitable contributions and education relief, apart from the BZ$19,600 previously mentioned.

Tax Credits

Companies established in the Commercial Free Zone can earn up to 2% of taxable income as tax credits by employing Belizean workers.

Other Taxes

Social security taxes The employer and the employees contribute to the Social Security fund. To give an example, for weekly earnings under BZ$70 (US$35), the Social Security contribution is BZ$4.40 (employer BZ$3.57, employee 83 cents).

Real property tax Property taxes vary but are about 1.5% of the assigned value of the undeveloped land, payable annually on April 1. In Belize, property taxes outside cities are based on land value rather than the developed value of the property, to encourage development. Property taxes on homes and other developed land even in cities are low, although the government has been increasing them in some areas.

Net wealth tax None

Tax Authorities

Income Tax Department.