Belize Capital Gains Tax on Property (2026): What Sellers Pay

Short answer: Belize does not charge a separate capital gains tax when an individual sells Belize real estate; its Income and Business Tax Act has no such tax. The main tax on a sale is stamp duty, normally paid by the buyer: 8% above US$10,000 for foreign buyers. Frequent sellers may owe business tax, and US citizens report gains to the IRS.

Does Belize have a capital gains tax on real estate?

Short answer: No separate capital gains tax applies when an individual sells Belize property. The Income and Business Tax Act, Cap. 55, taxes income and business receipts, not one-off gains on private property. The exceptions are people or companies in the real estate business, who pay business tax on gross receipts instead.

Belize’s direct taxes are set out in the Income and Business Tax Act, Cap. 55, published by the Attorney General’s Ministry. Income tax is charged on chargeable income such as the gains or profits of a trade, business, profession or vocation, and business tax is charged on receipts. Neither part creates a general tax on the profit an individual makes from selling a home, lot or condo they own privately.

The Act does tax one kind of gain: a 2019 amendment charges a company 5% business tax on its “annual net gain” from realizing certain foreign assets, and the list covers real estate located outside Belize. That rule does not tax a Belize property sale. The US State Department 2025 Investment Climate Statement for Belize also confirms that private parties, foreign or local, can freely acquire and dispose of property in Belize.

Who pays stamp duty when Belize property is sold?

Short answer: Stamp duty is charged on the transfer, on the greater of the price or the open market value. Since November 1, 2017, foreign transferees pay 8% on the value above BZ$20,000 (US$10,000), while Belizeans and CARICOM nationals pay 5%, according to the Ministry of Natural Resources. By custom the buyer pays it.

The Ministry of Natural Resources Valuation Unit administers stamp duty under the Stamp Duties Act and assesses it on open market value. The rates come from the Stamp Duties (Amendment) Act 2017: the first BZ$20,000 (US$10,000) of value is exempt. On a US$300,000 sale to a foreign buyer, duty would be 8% of US$290,000, or US$23,200, if the price is not below market value. Who pays is set in your Agreement for Sale. See closing costs buyers pay and the Belize closing process for US buyers.

Do frequent sellers or developers pay tax in Belize?

Short answer: Yes, they can. Business tax under Cap. 55 applies to receipts from real estate business. Real estate sales, developers, condominium owners and fractional interests pay 1.75% of gross receipts, agents pay 15% on commissions, and rents pay 3%. The tax is on gross receipts, not profit, so it can apply even without a gain.

The Belize Tax Service explains that business tax is a tax on total revenues or receipts, without deductions except specific reliefs, and that it covers anyone engaged in the business of investment or receipts from real or personal property. The rates for real estate business are in Schedule IX of the Income and Business Tax Act, Cap. 55. The Act also requires every person dealing in real estate business to file a statement of each transaction, including the property’s location and value, by the 15th of the following month.

Whether you are “in business” depends on the facts, such as how many properties you buy to resell, whether you subdivide or develop, and whether you are registered as a business. If you plan to buy, build and sell several properties, get advice from a Belize accountant and register with the Belize Tax Service before you sell.

Do US citizens owe tax on a Belize property sale?

Short answer: Usually they must at least report it. The IRS says US citizens and resident aliens are taxed on worldwide income from all sources, so a gain on Belize property is reportable. If it was your main home, you may exclude up to US$250,000 of gain, or US$500,000 filing jointly, if you meet IRS ownership and use tests.

The IRS states that US citizens and resident aliens abroad must report all taxable income and are taxed on worldwide income. Under IRS Topic 701, the main-home exclusion requires that you owned and used the home as your residence for at least two of the five years before the sale, and taxable gains are reported on Schedule D and Form 8949. A US tax adviser can confirm how this applies to a rental or vacation home in Belize.

What other taxes apply while you own the property?

Owners pay annual land tax or town property tax, and rental income is subject to business tax on receipts. See property tax in Belize and what taxes apply to Belize property buyers. If you are still deciding whether to buy, start with can foreigners buy property in Belize. All figures here are in US dollars; the Belize dollar is fixed at BZ$2 to US$1.