Investment Incentives
A variety of investment incentives are offered by the Government of Belize (GOB). These provide investors with the legal framework to engage in economic activities and were developed to grant relief to genuine investors wishing to establish a business in Belize provided their investment proposal meets the approval of the Government of Belize. As a general rule, when assessing investment proposals, GOB focuses on the economic and social benefits to be obtained from the investment, including environmental sustainability. The following provides an overview of the standard assessment guideline:
Investment should be socially and economically acceptable and legally doable.
Listed below are the salient government incentive programs and avenues currently in place:
Investment should be socially and economically acceptable and legally doable.
- Bring revenue to Government.
- Bring meaningful employment to the country.
- Bring foreign exchange.
- Preserve and possibly enhance the environment and respect the cultural heritage of Belize.
Listed below are the salient government incentive programs and avenues currently in place:
- Fiscal Incentive (FI) Program
The Fiscal Incentive Program aims to encourage genuine investment in Belize for both existing and prospective investors through the granting of Customs duty exemptions. The Program provides a legal and fiscal framework to stimulate productive economic activities that will ultimately contribute to the overall development of Belize.
Full Duty Exemption:
Categories:
Several categories of items may benefit from full or partial relief from Import Duty, depending on the nature of the business. Examples of categories that may be approved are:
Who Qualifies?
Full Duty Exemption:
- Duty exemption of up to a maximum of 15 years to companies granted an Approved Enterprise Order.
- Duty exemption may be renewed for a further term of 10 years or a total of 25 years for companies engaged in agriculture, agro-industrial products, mari-culture, food processing and manufacturing with operations centered on export, and that are highly labor intensive.
Categories:
Several categories of items may benefit from full or partial relief from Import Duty, depending on the nature of the business. Examples of categories that may be approved are:
- Building Materials and Supplies
- Plant, Machinery, and Equipment Specialized Tools (excluding hand tools) Utility and Transport Vehicles
- Fixtures and Fittings
- Office Equipment and Appliances
- Spare Parts for Plant, Machinery & Equipment
- Agricultural Machinery and Supplies
- Raw Materials or other items for the sole use of the approved enterprise.
Who Qualifies?
- A company applying for a development concession must be an incorporated entity under the Laws of Belize.
- Business activities must provide benefits to the economy of Belize.
| BelizeINVEST FI Brochure.pdf |
- Designated Processing Areas (DPA)
The Designated Processing Area (DPA) Program (DPA Act, No. 27 of 2018) is intended to support investments that engage in international trade and value addition inclusive of technology transfer, generation of employment and production according to standards of the intended market.
WHAT ARE THE ELIGIBLE ACTIVITIES?
Any company that is registered and formed in Belize, and is involved in any of the following activities: Manufacturing, Agro-processing, Aquaculture, Data Processing (IT Enabled Services), Developer of an Industrial or Business Park.
BENEFITS OF DPA PROGRAM (UP TO 10 YEARS WITH AN OPTION TO RENEW)
WHAT ARE THE ELIGIBLE ACTIVITIES?
Any company that is registered and formed in Belize, and is involved in any of the following activities: Manufacturing, Agro-processing, Aquaculture, Data Processing (IT Enabled Services), Developer of an Industrial or Business Park.
BENEFITS OF DPA PROGRAM (UP TO 10 YEARS WITH AN OPTION TO RENEW)
- Import Duty and Tax Exemptions
- Exemptions from property and land taxes on the designated area
- Exemptions from Excise and Consumption (GST) taxes on imported inputs
- Preferential Tax Rate based on Chargeable Income as per the Income and Business Tax Act (Amendment Act, No.26 of 2018)
- Opportunity to open foreign currency bank accounts in Belize
- Opportunity to sell, lease or transfer goods and services between DPA companies
- Customs inspection at the designated area for expediency
- Work permits may be granted for up to 15% of workers of the DPA (Senior Management or Technical Staff)
- Supplies Control and Import Licenses does not apply to inputs used for exports
- Exemption from the Trade Licensing Act
| BelizeINVEST DPA Brochure.pdf |
- Commercial free zones (CFZ)
The Free Zones Act of 2005 was established to attract foreign investment and provides for various activities including manufacturing, processing, packaging, warehousing and distribution of goods and services. Merchandise warehoused in a CFZ may be sold free of duty wholesale or retail:
Benefits of CFZs in Belize
Duty exemptions available to investors in a CFZ on:
Who Qualifies?
Any private or public party or group of parties may establish wholesale or retail businesses on property it owns or leases within a CFZ, provided it has obtained approval from the CEO of the Commercial Free Zone Board of Directors.
Application Requirements:
Interested parties must submit an application to the CEO of the Commercial Free Zone Board of Directors for review and approval. The CEO may approve a submitted application if the proposed business enterprise:
- To diplomats of other countries.
- To ships that dock at ports in Belize.
- For direct export whether by sea, air or land.
- For entry into national customs territory (related import duties and taxes become payable upon entry into national customs territory).
Benefits of CFZs in Belize
Duty exemptions available to investors in a CFZ on:
- Merchandise, articles or other goods entering a CFZ for commercial purpose.
- Fuel and goods including building materials, furniture, equipment, supplies and parts required for the proper functioning of the CFZ business.
- Exemption from income tax, capital tax, gains tax or any new corporate tax levied by the Government of Belize during the first 10 years of operation.
- Exemption from such tax for the first 25 years of operation on dividends paid by a CFZ business.
- Imports or exports by a CFZ business do not require an import or export license.
- No restrictions on the sale of foreign currency or transfer of foreign exchange in a CFZ.
- No Government charges and taxes imposed on the use of foreign currency in a CFZ.
- CFZ businesses are allowed to open an account in any currency with any registered bank.
- Income tax deductions on the chargeable income of every developer and CFZ business after the first 10 years of operation.
- CFZ businesses incurring a net loss over the 10 year tax holiday may deduct the loss against profits in the 3 years following the tax holiday period.
Who Qualifies?
Any private or public party or group of parties may establish wholesale or retail businesses on property it owns or leases within a CFZ, provided it has obtained approval from the CEO of the Commercial Free Zone Board of Directors.
Application Requirements:
Interested parties must submit an application to the CEO of the Commercial Free Zone Board of Directors for review and approval. The CEO may approve a submitted application if the proposed business enterprise:
- Will conduct trade and investment activities such as a commercial office, warehouse, manufacturing, insurance services, financial services, banking services, offshore financial services and other professional or related activities.
- Will not have a deleterious effect on the environment.
- Gaming Control (Casino) Program
This system was modeled on par with similar standards adopted by successful gaming countries, and subsequently adjusted to create a modern program to suit the gaming industry. Gaming fosters economic growth and development through investments, which allows for job creation, transfer of skills and technology, earning of foreign exchange and linkages to the tourism sector and other sectors of the economy.
Benefits of Gaming Control Act
Types of Gaming Licenses
Who Qualifies?
Large hotels either established or in the process of construction can apply for a gaming license. Furthermore, every person with the intention of using or permitting another person to use his premises for gaming is required to apply for a gaming license.
Benefits of Gaming Control Act
- Smooth and simple application process.
- Designed specifically to encourage the hotel and tourism industry.
- Tourists and qualified Belizean residents over 18 are allowed to enter gaming room and participate.
- Gaming room allowed to stay open every day except Good Friday.
- No additional fees attached to usage of slot machines Renewable license granted for a period of up to five years Year-round sub-tropical climate.
- Additional tourist attractions offered by Belize.
Types of Gaming Licenses
- Gaming License – is granted for Casinos.
- Gaming Machine License – is granted for establishments featuring gaming machines such as any arcade machine, poker machine, slot machine, or any electro-mechanical device used in connection with or for the purpose of gaming.
- Online Gaming License – is granted when gaming occurs as a result of a player entering, negotiating, or receiving a bet by means of telecommunication.
Who Qualifies?
Large hotels either established or in the process of construction can apply for a gaming license. Furthermore, every person with the intention of using or permitting another person to use his premises for gaming is required to apply for a gaming license.
- Qualified Retired Person’s (QRP) Program
A special Retirement Program has been designed specifically for retirees who wish to live in Belize and can prove a permanent and consistent income from investments, pension or any other form of retirement benefit. Successful applicants are granted special Qualified Retired Person’s Status (QRP status).
Benefits of QRP Status:
Who Qualifies?
Anyone forty-five years and older can qualify for the program. A person who qualifies can also include his or her dependents in the program. Dependents can only include spouses and children under age of eighteen; however, it can include a child up to the age of twenty-three if enrolled in a university. An applicant must receive a monthly income of no less than US$2,000.00 through a pension or annuity that has been generated outside of Belize. In order to qualify for the program, all applicants are subject to a background check to be carried out by the Ministry of National Security.
Benefits of QRP Status:
- Exemption from all taxes on income and receipts.
- Exemption from all import duties and taxes on personal effects upon first importation into Belize.
- Exemption from all import duties and taxes every five years on a personal motor vehicle.
- Spouse and children under the age of eighteen included in program.
- Permission to conduct business from within Belize if business activities are carried on mainly outside of the country and are not conducted with Belizeans.
Who Qualifies?
Anyone forty-five years and older can qualify for the program. A person who qualifies can also include his or her dependents in the program. Dependents can only include spouses and children under age of eighteen; however, it can include a child up to the age of twenty-three if enrolled in a university. An applicant must receive a monthly income of no less than US$2,000.00 through a pension or annuity that has been generated outside of Belize. In order to qualify for the program, all applicants are subject to a background check to be carried out by the Ministry of National Security.
| QRP Pamphlet |
- Diaspora Retiree Incentive Program
The Diaspora Returnee Incentive Program was introduced in 2010 as a mechanism to foster the embracement of high value diaspora skills of Belizeans who are presently in the overseas and are considering repatriation. The program is aimed to attract Belizeans who have a reoccurring monthly pension or income from a granted source to be deposited and spent in the local economy.
Benefits of Diaspora Returnee Program:
Benefits of Diaspora Returnee Program:
- To enter and remain in Belize with dependents in accordance with current immigration laws at the time of entry.
- Exemption from all import duties on personal effects, tools of trade, personal transportation upon entry to Belize.
- Must be a citizen of Belize
- Has resided for at least ten (10) consecutive years outside the country of Belize – proven through presentation of official documentation.
| Diaspora Retiree Incentive Program |
