Buying property is always a stressful process and it can be even more so when buying in a foreign country. However, Belize is part of the British Commonwealth with a legal system that shares the same British common law as Canada and the United States. However, there are five basic things that every buyer should know before starting the process of buying his dream property in Belize:

1. A foreigner can own property in Belize outright and has the same rights as a Belizean citizen to own the property. Since the Foreign Land Tenure Act was abolished in 2001, no licenses, permits, special permits or conditions are needed for a foreigner to obtain freehold title to land in Belize.
2. It is always advisable to seek professional legal advice when purchasing property, although you will often be told otherwise. There are experienced and reputable paralegals who will be familiar with local property title history and can often finalize a purchase. However, there may be significant issues related to how best to take title that can affect your closing costs and potentially affect how you sell your property. Take no chances, get qualified local legal representation.
3. Title insurance is very prevalent in the US and increasingly in Canada, but not as common in Belize. However, Belize is one of the few Central American countries that actually offers title insurance through one of the major US providers, Stewart Title. It is important to note that the Government of Belize guarantees most Belizean titles, while your local attorney can provide a title opinion that makes buying property as secure with respect to your title as it is in the US. USA and Canada.
4. Closing costs in Belize are very straightforward. Since there is no capital gains tax related to the purchase and sale of real estate, the Government levies a stamp duty of 5% on the stated purchase price of the property at the time of transfer of title. However, there is an additional 5% tax for foreigners and people who have resided in Belize for less than 3 years. It is important to fully review and understand your options before completing the sale to ensure you take title to your property in Belize that best suits your particular circumstances. Your attorney or paralegal closing fees should be budgeted at a minimum of $500 – $1500.
5. Local funding, although available, would not be a recommended course of action. Most foreign property transactions are made in cash or financed abroad. Belizean interest rates are usually much higher than what you will be used to in your local markets with fixed terms of only twelve months and only issued in Belize dollars. At the end of each year, the loan is paid off and then renewed at the current interest rate. A more reasonable alternative may be to borrow through an offshore banking institution and, as always, professional advice is very important.

Common sense should prevail when contemplating the purchase of property in any foreign jurisdiction and that should start with hiring an advisor who is on your side and does not commit to also act on behalf of the seller. Start by following the five factors above and you will go a long way in making this an exciting and joyful experience.