The Home Buying Process and Costs

Buying a home is a big step for people, and can be very challenging. Whether you’re buying your first home, second home as a vacation home, or an investment property, it requires a lot of work and concentration. After all, this is a big investment. Here is the buying process and costs that will arise:

1. Determine where you want to live and find the perfect property on Home 4 Good Belize.
2. Work with a Real estate agent (if you choose to)
3. Schedule a tour or visit of the property
4. Submit Offer to Purchase form to the respective agent or home owner. (This process may include a negotiation period with counter offers).
5. Acceptance of Offer
6. Sales Agreement drafted outlining the price, payment schedule, and terms.
7. Open Escrow Account and deposit earnest (security) money.
8. 30 to 60 days for due diligence (schedule inspections, evaluations, survey and title search), but vary according to each sale.
9. Closing Date: Seller surrenders legal title and transfer of ownership documents and Zero Balance Property Tax Statement to the Buyer; Buyer authorizes release full payment to Seller via wire transfer
10. The Keys are delivered: The Buyer(s) has full possession of property

DEPOSIT/EARNEST MONEY

Normally 10% of purchase price – less on higher value properties.

STAMP DUTY

5% of purchase price, payable to the Government of Belize by the buyer. The first $20,00BZ ($10,000US) of purchase price is exempt.

REGISTRATION FEE

$30BZ ($15US) for registration of new titles and payable to the Government of Belize by the Buyer.

CLOSING COSTS

Approximately 1.5-2% of purchase price for closing cost & legal fees refer to the associated fees for:

1. Carrying out a basic title search
2. Preparation of transfer documents
3. Following the signed documents through the transfer process
4. Ensuring that the correct amount of government “stamp duty” is assessed
5. Payment of government registration fee
6. Issuing of the title in the new owner’s name

MOVING

This depends on where you are relocating from

Belize is one of very few countries in the world that are a tax ‘safe haven’, even offering tax free living to qualified retirees from any country in the world. Properties are assessed by the Department of Natural Resources and property taxes are due on April 1st of each year. Property taxes range between 1% – 1.5% of the assessed value. While there are no capital gain taxes, property transfer taxes are usually around 5% for residents or CARICOM country affiliates, and 8% for non-Belizean’s.

All of these taxes are based on the total purchase price of the property.