MORE ON RETIRING IN BELIZE

Ever since the 1998 national elections, which brought about a tremendous turnover in government, we've been waiting anxiously to see how the new ruling party would make good on its promise to attract foreign capital to Belize. Our expectations have been far exceeded by a new, ground breaking act. The Government of Belize has passed sweeping legislation that promises to be the most substantial enticement ever, to attract retirees to Belize's shores. The Retired Persons (Incentives) Act, 1999, which should come into effect within the next few weeks, will accord tax-exempt status to "Qualified Retired Persons" (QRP), and the right to freely visit and/or reside in Belize, along with their spouses and dependents under age 18.

This Act is to be administered by the Ministry of Tourism. Mr. Dion Pascasio, Assistant Secretary within the Ministry, is the individual responsible for coordinating all the various aspects involved, including the application process. I recently spoke with him to clarify the general details, as well as some finer points.

The essence of the program is that it grants freedom of mobility to these designated individuals. While this special status does not come with any of the benefits of residency or citizenship, neither does it impose any of the obligations of such residency or citizenship. Effectively, it allows the qualified individuals to remain tourists in Belize on an indefinite basis. Mr. Pascasio explained that the Act is in its infancy, and, once implemented, we should fully expect it to be amended and expanded as need and practice dictate.

Who Can Qualify?

Individuals applying for "Qualified Retired Person" (QRP) status must meet the following requirements:
a) Be 45 years of age, or older;
b) Be a citizen or legal permanent resident of the United States, Canada, the United Kingdom, or Belize (and possibly other nations, to be identified at a later date);
c) Be the beneficial owner of a pension or annuity, or other off-shore source of income;
d) Give written agreement to deposit either US$2,000 per month or US$24,000 per year, for their own use, into a licensed financial institution in Belize (or the equivalent in an approved currency).

While there will likely be a nominal application fee, as well as a charge for the special visa that will be issued, the application process is not anticipated to be difficult or time-consuming.

These designated QRPs are permitted, on first entering Belize, to import their personal effects, and a single "approved means of transport," for their personal use, completely tax and duty-free. These approved means of transport are motor vehicles, boats, and light aircraft. This transport may even be replaced every five years, also under concession, provided the previous item was properly disposed of. If these personal effects or means of transport are ever sold or otherwise distributed to another person in Belize, such duties and taxes must be paid immediately. QRPs are permitted to import more than one such item, however, only one will be exempt.

Any income (earned or passive) which comes to a QRP from sources outside Belize is exempt from all taxes and levies. Theoretically, you may be able to qualify as a non-resident in your native country, and therefore be relieved of taxation at home, as well. It remains to be seen how some oppressive tax regimes will deal with that! Another key point of interest in the Act, accords these retired persons to be deemed as "non-residents," with respect to many laws of Belize relating to international financial services, including the Offshore Banking Act, the Trusts Act, and the International Business Companies (IBC) Act. For example, the Trusts Act states that individuals residing in Belize may not be beneficiaries of a Belize Tax-exempt Trust. This means that many business persons who are clients of Belize's offshore industry, may now retire in Belize without losing their non-resident status, and therefore, the benefits of these financial tools.

QRPs, and their dependents, are permitted to carry on business while in Belize, provided such a business deals primarily with activities outside of Belize, and exclusively with non-residents. Neither the QRPs nor their dependents may be gainfully employed within Belize. Should anyone wish to undertake a business venture in the country, they will likely have to entertain the idea of dropping their QRP status and applying for permanent residency. However, Mr. Pascasio informed me that an amendment is likely that would permit some sort of passive investment, as individuals wishing to invest in Belizean interests should be encouraged to do so.

In conclusion, anyone who has considered retiring in Belize, or even just spending their winters here to escape a cold climate back home, will now have a chance to do just that, free from the time-consuming residency requirements and worry of local taxation. These advantages, combined with our wonderful climate, friendly people, and laid-back lifestyle, offer no greater inducement...So, come on down!!

Retirement Incentives Update

Belize's new retirement act is open for business

Now that Belize's Retired Persons (Incentives) Program has been fine tuned and implemented, it's time for an update on the benefits of the program, and an overview of the requirements for qualification.

Incentives
This program has been designed to attract foreign retirees (and dependents), with their capital, to become permanent visitors of Belize, as "Qualified Retired Persons" (QRP). As a peaceful, English-speaking nation, Belize has much to offer, including a lovely year-round climate, easy access to land for construction of retirement homes, a stable currency, abundant natural resources, and, last but not least, friendly people. The principal incentives the program offers QRPs are importation of household and personal effects, and an approved means of transport, such as a motor vehicle, boat, or light aircraft, free from import duties and taxes. The maximum exemption on household and personal effects is US$15,000 in tax/duty; the means of transport is permitted in addition to this. QRPs are also exempt from all taxes and levies on income generated outside of Belize, whether from work performed, or from investments.

General requirements
Applicants must be at least 45 years of age, and a citizen of Canada, the United States, the United Kingdom, or Belize. Belizeans qualify only if they are permanent residents of one of these other countries and enter Belize under this status. All individuals must certify that either: a) they are the recipient of a pension or annuity of a minimum of US$1000 (one thousand US dollars), per month; or b) if revenues are generated by investments, they have deposited a minimum of US$2000 (two thousand US dollars) per month or US$24,000 per year into an accredited financial institution in Belize. Because the program is designed to accept US Dollars only, all such deposits must be made in this currency. QRPs must sign a written agreement to deposit these funds regularly. An authentic Police Record from your last place of residency, and a Medical Certificate (including an AIDS test), must accompany your application. Applicants are also subject to a background check. If, at any time, a QRP wishes to leave the program and relinquish their status, all assets imported under the program must be liquidated in accordance with program guidelines.

Costs involved
a. A non-refundable application fee in the sum of US$100.00 payable to the Belize Tourism Board must be submitted with the application.
b. A program fee in the sum of US$500.00 payable to the Belize Tourism Board must be submitted upon acceptance into the program.
c. On first entering the country, a fee of US$100 must be paid to the Immigration Department to entitle the applicant to receive QRP status
d. A BZ$10 stamp (or equivalent) must be attached to each application submitted for processing.

Although it is not required, applicants may solicit the services of a local attorney or accountant in completing the application process.

On the Web...
A Belize Retirement website is now up and running, complete with all the details on qualifications, a downloadable application form, and other documents necessary to apply to the program: http://www.belizeretirement.org. You may also phone for more information: 1-800-624-0686 (USA and Canada); or 501-2-31913 in Belize.

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