Moving to Belize

Formerly known as British Honduras, Belize is a small country at the northeastern coast of Central America, which borders Mexico, the Caribbean Sea and Guatemala.

It doesn’t seem to have major issues with Mexico, but Guatemala does claim sovereignty over all or a part of Belize.

It’s unlikely this will result in war, as both countries have agreed to submit their dispute to the International Criminal Court.

(That being said, just because they say X, doesn’t mean you should assume Y is impossible!)

Because Belize is a former British colony, the official language is English.

For expats who cannot speak any other language (like Spanish) this is a definite advantage.

In addition, Belize is a parliamentary constitutional monarchy, which is a sigh of democratic relief compared to some other Latin American countries.

Belize geography and climate

Belize is 60% covered by forests, and partially because of the thick jungles it’s also a major transit country for drugs into Mexico. Other factors are the coastline, borders and limited enforcement capacity.

It has a tropical climate, with pronounced wet and dry seasons.

The average temperatures are pleasant, but the humidity is pretty high.

I’ve been living in Southeast Asia for over a decade, and now moved to Latin America, so this isn’t a big issue for me anymore, but for fresh expats, I’d say it’s definitely a factor to keep in mind!

Belize is often known for its massive coral reefs, huge terrestrial and marine biodiversity.

It also gets hit by hurricanes every so often.

Belize demographics and crime

Belizeans are reproducing at a decent rate, and the country’s population is growing steadily. In 2024 there was a 1.4% annual population growth, with the country’s population reaching roughly 417,000.

One of the country’s major drawbacks is violent crime, particularly gang-related violence in parts of Belize City.

Drug trafficking, organized crime and gang activity contribute to the problem, and Belize has historically recorded a relatively high homicide rate for its population size.

Another country which hasn’t learned that a “war on drugs” is stupid and never NEVER works.

Belize taxes and financial side

For financially minded expats, Belize also has some interesting characteristics.

It used to be a “tax haven”, but has, unfortunately, lost some of its lustre.

• Belize is not a tax-free country in general, HOWEVER it uses a territorial tax system, meaning foreign-source income is generally not taxed in Belize.
• This makes Belize attractive to us expats who earn money from overseas clients, investments or other foreign sources.
• However, income connected to work or business carried out in Belize can be taxable. The exact treatment depends on how you earn your money and where the income is considered to originate.
• It has also introduced stronger international tax-transparency rules, so you cannot simply hide foreign income there.

Some non-residents can open Belize-dollar bank accounts, although additional approval may be required for other applicants.

If you don’t plan to live in Belize, but just use it as a Base, here’s something interesting: foreigners can establish a Belize company without necessarily living in Belize, typically using a registered agent.

A Belize company can then also potentially open a local bank account with non-resident directors or signatories. However, the company must pass the bank’s KYC and source-of-funds checks, so incorporation does not guarantee that a bank account will be approved.

Finally, the Belize dollar is pegged to the U.S. dollar at BZ$2 to US$1, a fixed exchange rate that has been maintained since 1976.