If a person(foreigner) buys a home or existing business on Caye Caulker,do they need a work permit to do work on their own property. If so; is this law enforced to the letter, and what would the consequences be if they got caught?.

If your talking about working on and not from your house..well actually the answer is yes..by the law your not suppose to do any type of work not even driving a nail, especially if a Belizean can do it. You are not suppose to work even if you dont get paid. However I have never heard of anyone enforcing or getting busted on their own home repairs. I have personally seen folks working businesses immediately escorted out of the country. You can own the business but need a permit to work it. Back in the days before compurters at the Boarder if you were thrown out of the country you could turn around and reenter. However now OTL's Orders to Leave will show up when they scan your passport.
If you own property here I would not risk it..working a business.
Go ahead and paint the house......