Belize is a Central American country located on the Caribbean coast, bordering Mexico and Guatemala. Its capital is Belmopan, while Belize City remains the country’s main commercial hub. The official language is English, with Spanish widely spoken. The official currency is the Belize Dollar (BZD), which is pegged to the US Dollar at a fixed rate of 2:1.
Belize is known as a traditional offshore jurisdiction, offering a stable legal system based on British common law and a flexible corporate framework governed by the International Business Companies Act (IBC Act). It is particularly attractive for international trade, asset protection, and privacy-conscious structures.
Legal Reforms and Regulatory Updates (Post-2019)
In response to OECD and EU recommendations, Belize significantly reformed its tax and regulatory framework in 2019. The previous ring-fenced offshore tax regime was abolished, and the country adopted a territorial tax system with new rules on economic substance.
Key implications of the reform:
- Introduction of mandatory bookkeeping and accounting
- Annual reporting and tax filings for certain companies
- Substance requirements for entities with “relevant activities” (e.g., financing, leasing, IP holding)
- No corporate tax on income generated outside Belize
Tax Regime in Belize
| Item | Regime |
|---|---|
| Corporate income tax | 0% (on foreign-sourced income) |
| Business tax on Belizean-sourced income | 1.75%–6% (depending on activity) |
| Tax return filing | Required if income is Belize-sourced or if engaged in relevant activities |
| Tax on dividends and interest | 0% |
| Withholding tax | 0% for non-residents |
| VAT | Not applicable |
| Double Tax Treaties | None (including no DTT with the Czech Republic) |
| Tax information exchange agreements | Yes (Belize is a party to CRS, FATCA, OECD MCAA) |
Typical Corporate Structures
Belize IBC – International Business Company
The IBC is Belize’s flagship offshore vehicle, ideal for holding, trading, IP ownership, and privacy-based structures.
| Tax residency | Not a Belize tax resident unless operating locally |
| Public register of directors/shareholders | NO |
| Nominee services | ALLOWED |
| Bearer shares | Immobilized and restricted |
| Accounting | MANDATORY (since 2019) |
| Audit | Required only if income exceeds USD 6 million |
| Substance rules | APPLY to companies with relevant activity |
| Reporting | Annual financial summary and tax filing (if applicable) |
| Online incorporation | YES (via licensed agents) |
Benefits of a Belize IBC
- No tax on foreign-sourced income
- No minimum capital requirement
- Low incorporation and maintenance fees
- High level of confidentiality (no public registers)
- Flexible company naming options (LTD, INC, S.A., etc.)
- Modern legal framework
- No exchange controls
Information Exchange and Substance Requirements
Belize complies with international standards on tax transparency. It is a signatory to CRS, FATCA, and the OECD’s MCAA. Information may be exchanged with foreign tax authorities upon request.
Companies carrying out relevant activities (such as IP holding, banking, insurance, finance & leasing, shipping, or holding companies) must demonstrate economic substance in Belize (e.g. local office, employees, management presence, operational expenses).
Document Legalization
Belize is a member of the Hague Apostille Convention, so all corporate documents can be officially certified via apostille for international use. Notarization and certified translations are also available upon request.
Common Uses for a Belize IBC
- International trading structures with no Belizean-source income
- Asset holding and group-level holding companies
- IP ownership and royalty collection (with substance)
- Investment into foreign real estate or securities
- Anonymity through nominee directors/shareholders or trusts
- Entry point to banking in the Caribbean, Dubai, Panama, etc.
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