Ever Since the ‘International Business Companies Act’ of 1990, international business owners have been able to register their company as an International Business Company through the Belize government. The International Business Companies Act is a piece of legislation that was initially adopted in 1990 and further extended and amended in 2000 and revised in 2011. The objective of the act is to allow businesses to operate internationally, while also being exempt from taxes so long as the business is not headquartered in Belize itself physically.
Using an IBC is one of the most popular types of offshore corporations. An IBC is used to invest in a foreign market, while also providing tax advantages and asset protection. Almost every offshore tax haven uses an IBC. Holding real estate in an IBC is the cornerstone of foreign property ownership.
An IBC is a private company that is structured to allow foreign investors to engage in international activity and property ownership. A key advantage of an IBC is the tax exemptions in its home jurisdiction. Another key advantage of holding assets in an IBC is the confidentiality and secrecy of its owners and is not subject to the same reporting requirements.
Belize IBC is considered internationally as one of the most modern and user-friendly offshore corporation legislations. Taking a lot of inspiration from the same policies of the British Virgin Islands. An IBC is perfect for international financial transactions (like real estate), specially designed with the offshore investor in mind. Using an IBC or purchasing property held in IBC facilitates fast and simple incorporation. The registration of an IBC is also computerized allowing a transfer of ownership to happen in a matter of hours, instead of taking months.
A Belize IBC is considered to be one of the most business-friendly offshore legislations to exist in the world. This is primarily because of the ease of set up, identity protection, tax exemption, and confidentiality protections that keep business owners from having to fulfill rigorous paperwork obligations constantly.
There is a multitude of reasons why offshore business owners would want to register their business through Belize as an IBC. The government of Belize is notoriously non-corrupt, manages a stable and robust economy, and belongs to the British Commonwealth as well as the United Nations. This makes Belize perhaps the most reputable and trustworthy offshore tax haven in the world.
Advantage of Owning Real Estate in an IBC
- Fast Incorporation
- Easy Transfer of Property
- Fixed Licensing & Renewal Fees
- Legal Protection
- Secrecy
- Provisions Against Confiscation
- Low Capital Requirements
- Tax Advantages
Belize Property in an IBC
In Belize, a foreigner has the same rights as a Belizean citizen to freehold property ownership. This came from the countries’ British Commonwealth roots and the British Common Law system in place. Belize not only allows non-nationals to own land, but offshore investors are allowed to own real estate and hold assets in an IBC. This provides investors the same level of land ownership with the added asset protection and tax advantages.
IBC Licensing Fee
It is important to note that the government of Belize does require a fixed annual licensing fee to be paid by the IBC registration owner. This is not a tax, but rather a fee associated with maintaining and holding identification for the IBC license over time.
The fixed annual licensing fee will change depending on the annual income of the business and can range from $100-$1,000 USD. Many businesses consider this a small price to pay to be able to operate their international business operations and transactions tax-free and without the onerous red tape that other legislating bodies might require.
Many other offshore financial hubs in the Caribbean maintain a minimum licensing fee of $400-$450, so the $100 minimum licensing fee of Belize is very competitive and has a long track record of being so over the years. It’s safe to assume that the annual licensing fees of Belize will always be among the lowest in the world for offshore financial hubs.
Additional Benefits of an IBC Ownership Through Belize
The government of Belize is incredibly forgiving when it comes to their minimum requirements in order to qualify for an IBC license. For example, your business is only required to have one shareholder and one directing entity, which can both be the same person. This means that a single individual owning a business can register their business for the IBC licensing easily.
In addition, the government of Belize does not require any minimum as a capital requirement for the business to report. That means that even the smallest businesses can register for the IBC licensing easily. Pair these benefits with the processing times that can take as little as 2-3 hours, and you have a recipe for one of the easiest and best IBC licenses available to international businesses across the globe.
If your business wishes to operate internationally, with a high degree of anonymity and without all of the tricky bureaucracy of your home government, consider registering for an IBC license through Belize. It could be the best decision your business has ever made!
