Special retiree benefits, even lower taxes, and land from $500 an acre-There’s more to Belize than Ambergris
by Don Ediger
US$1 equals 2.00 Belize dollars
http://www.internationalliving.com/belize/paid/more-than-ambergris-july06.html
Even before the plane touches down, passengers can see that the airport at Belize City has become a major construction site. Amid the palm trees and scrub brush, construction crews work in the hot sun to build runways, terminal extensions, and other facilities designed to handle more passengers-many more.
The work at Phillip S.W. Goldson International Airport is only one of the many changes taking place in Belize. The country is safer, transportation better, and taxes lower than ever before. New oil deposits have been discovered, and the government has taken more steps to protect the environment.
From exotic rainforests to the nearly 200 miles of pristine beaches, the country once known as British Honduras is attracting a growing number of visitors, many of whom are looking for bargains in houses or condominiums. But, barring a major setback for Belize, bargains will almost certainly become harder to find.
Already, people who want a great deal on a second home in the tropics are searching beyone Ambergris Caye and Placencia, where property prices are reminiscent of those in Florida a few years back. They’re discovering towns that were recently unknown to most visitors-Orange Walk and Hopkins, for example.
If you plan to visit Belize or buy property here as a second residence, it helps to know about the changes in Belize that rarely make the news I the U.S. or Europe. Here’s an inside look at what’s going on…
By air, land or sea
American (www.aa.com), Continental (www.continental.com), and Delta (www.delta.com) are the only airlines that currently fly from the U.S. to Belize (no European airlines fly directly to the country).
Delta’s $492 round-trip fare from Atlanta is typical of prices when you book online directly from the airline. Travelocity (www.travelocity.com) and other discount online brokers can usually cut the price by at least 25%.
Airport expansion, however, is designed to lure other airlines from both the U.S. and Europe. That’s likely to result in lower fares, particularly for package vacations.
Two domestic airlines-Maya Island Air (www.mayaislandair.com) and Tropic Air (www.tropicair.com)-fly to (or near) almost any place you’d want to visit in Belize, and at reasonable rates. The round-trip fare from Belize City to San Pedro, for instance, is $108 on Tropic Air.
Plentiful and reasonably priced domestic flights are a big advantage in a country where roads vary widely in quality. In fact, highways can be especially troublesome to drivers who aren’t aware of the speed bumps that Belize puts on its highways, much like speed bumps around shopping malls in the U.S. In Belize, highway speed bumps are supposed to have warning signs far enough ahead of them to allow cars to slow down. Unfortunately, many warning signs have fallen down or have been vandalized. The result is that when you hit one of the bumps at 60 miles an hour your car can wind up in need of major repairs. Even if you’re driving an insured rental car, the delay can spoil a trip.
One way to avoid this is to take an intercity bus. A few years ago, tourists were often warned that buses in Belize weren’t safe-in fact, there were several incidents of robbery involving foreign passengers.
Today, buses are much safer, thanks largely to the decision to assign plain-clothes police to routes that had problems. And the fare is a small fraction what you’d pay to fly. Still, to be absolutely safe, it’s best to take intercity buses only during the day and to bring a small amount of luggage that can be stored under our seat or in the overhead rack.
The major bus line in Belize is Novelos Bus Service. With its subsidiaries, Novelos operates in nearly all parts of the country (tel. (501)227-2025 or (501)227-3929).
Another option is to take a water taxi. It’s an experience in Belize. I sat next to an elderly gentleman on a recent water taxi trip from Belize City to San Pedro. About halfway into the hour-and-20-minute ride, he said it reminded him of the landing craft he was on during the Normandy landing.
Water taxis ferry passengers between most major coastal cities in Belize and between Belize and Mexico. A round-trip from Belize City to San Pedro costs $28 on the Caye Caulker Water Taxi (tel. (501)26-0992).
A word of advice: Think twice about taking a water taxi if you’re prone to sea sickness, have just had a big meal, are easily sunburned, or have a hangover. Similarly, consider taking ground transportation if the seas are rough or if it’s raining. (Most water taxis in Belize are open boats without sheltered seats.)
A friendlier tax haven
Belize recently charged foreign residents a tax rate of 45% on income derived in the country. The rate has now been lowered to 25%, and the first $10,000 of annual income is exempt. To qualify for residency, you must be present in Belize for 183 days or more during a calendar year. Non-residents don’t qualify for the exemption and are taxed 25% on any employment income earned in Belize.
On the surface, that might seem harsh, but only income derived from employment in Belize is taxable and all foreign income is also exempt, and that’s a big plus for expatriates living full-or part-time in Belize.
Moreover, expats can apply for status as a Qualified Retired Person (QRP), and, with that status, you can avoid Belizean income tax and also import your household good tax-free up to a total exemption amount of $15,000. You can also bring in a vehicle (a car, light aircraft, or boat) tax-free. In fact, every five years you can import a new vehicle, tax-free.
Even if you are not a QRP, the Belize government makes it possible to avoid income taxes by transferring income and assets (though not real estate) into Belizean International Business Corporation (IBC). Dividends paid to you from the IBC are not taxable.
Belize has maintained its position as a country with strong laws that protect offshore trusts, one of the best ways to avoid taxes in the country of your origin. And, if that’s still not enough to entice you, consider that the country also gives big financial incentives to expats who start business here.
Searching for bargains
Bargain property is harder to find than it was several years ago, and that trend is likely to continue as more people visit the country. Actor Leonardo DiCaprio recently bought a house here, and Bill Gates has been looking at several offshore islands.
The good news is that ou can still find bargains, and as Emory King, dean of the American expat community says, “Visit the whole country, and talk to people everywhere. That may tend to confuse you, but in the end you will know where you want to live in our Paradise.”
Look for value in areas overlooked by expats who settled here when property sold for rock-bottom prices. Near Orange Walk Town in northern Belize, for example, property often sells for $500 an acre, and a charming two-bedroom house was recently advertised for $75,000.
Though the area isn’t on the coast, it’s only about an hour by car from the shore, and less than that from the rainforest and historic Mayan ruins.
On Belize’s southeast coast, real estate prices have steadily risen in Placencia. The town of Hopkins, however, is only a few miles away, and smart bargain hunters know it well. A ¼-acre lot in the waterfront Palmetto Grove community was recently on offer for $40,000. not far away at Sittee Point, $70,000 was the asking price for a lot with 50-feet of ocean frontage.
The rainforest in the western Cayo District has some big advantages-a cool climate and low prices. The main town is San Ignacio, which is close to thundering waterfalls, limestone caves, and lush rainforests rich with exotic plants and animals.
In fact, more than 60% of the Cayo District has been set aside as a forest reserve, national park, or wildlife sanctuary-all of which means overbuilding is highly unlikely.
Though prices have risen on Ambergris Caye, don’t write it off completely. Sure, there are some expensive oceanfront houses and condos, but you can still find great deals if you’re willing to walk a few yards from you home to the beach.
Food to match European standards
Eating out in Belize has always been a challenge. Many restaurants are charming and have spectacular views, but the food is often less sensational. Today, the restaurant scene is changing, but slowly.
Behind the change is the growing number of U.S. and European expats who demand better food. Seizing the opportunity to provide it, restaurateurs are opening new restaurants and improving the menus in existing ones.
Many restaurants have given up trying to duplicate American hamburgers and other popular food, because the ingredients-well-aged beef, for example-aren’t readily available in Belize. Instead, they’re adapting their menus to what is available-fresh fruit, pasta, and seafood.
A great example of the new breed of restaurants is Casa Picasso on Ambergris Caye, which Fodor’s named as one of the world’s best restaurants for 2006. Casa Picasso features Spanish-influenced dishes, including tapas, paella, and a variety of spicy seafood dishes. Among the unforgettable delights is papaya salsita, a creative blend of papaya, onion, Belizean honey, and pepper spread on bruschetta.
Another recommended restaurant is La Tavernetta new Belize City. The restaurant, a creation of former pilot Franco Boscardi, has some of the best food I’ve tasted outside of Europe, including a delectable pasta carbonara.
Not long ago, I dined at la Tavernetta with expat Emory King. Before we dived into the pasta, we raised our wine glasses and toasted the changes in Belize that we discussed for the rest of the evening.
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