Going Global: Belize’s Financial Sector
Belize has long since been a preferred offshore destination of mine. I feel that the country is slowly coming to realize its economic and financial potential while providing investors with the chance to become a part of this growth. Through a highly secretive and protective financial sector, the country provides people both with the opportunity to protect their financial interests and also grow their wealth.
With high-interest rates of about 10% and the International Banking Act, as well as very low tax rates; both depositors and investors in the country have much to gain from moving their funds to Belize. This, however, has nothing on the economic opportunities that working in Belize presents to people. With the diplomatic efforts on the part of the state, your companies can become part of a thriving import/export-oriented economy with the potentials to make profits trading across the globe.
Although I’ve already spoken of the advantages of saving up money in international banks in Belize, there’s still a lot more to say about investing in the economy to take up the commercial advantages the economy has to offer. As such, this blog is going to be about the commercial prospects that Belize has to offer to businessmen and entrepreneurs.
Belize’s Connection to International Markets
Belize enjoys the benefits of bilateral investment treaties with major European markets and one Partial Scope Agreement with Guatemala. For as long as these are in effect, businesses in the country can enjoy special benefits while conducting business with these nations through the Belizean financial system. The more notable of these include:
Agreement with Austria
The bilateral trade agreement with Austria has set out terms that can expedite the process of investing in the country. The agreement requires parties on both sides of the treaty to promote and protect the business interests of the investors for as long as these are compliant with the terms of contracts that have been set.
Additionally, the treaty requires both the contracting parties to extend the full benefits of the treaties either party belongs to. So if you invest in a company in Austria that reaps the benefits of a Free Trade Agreement or any other similar trade agreement, you will also have the same benefits extended to you as an investor in the Austrian company.
Agreement With China
The agreement with China goes even further to help promote investment interests across borders, in the sense of reducing the bureaucratic hassle involved with setting up companies. It further extends protection from any losses due to the political or financial upheaval that occurs across borders. So if you suffer losses through war or natural disasters, you will be compensated for these.
In addition to these terms, the agreement requires both nations to transfer earnings and profits as they are without any taxation after subjecting them to the exchange rates as is prevalent at the time.
Agreement With The Netherlands
This particular agreement seemed a rather brilliant diplomatic move, in that it gives either party to extend tax exemptions and the benefits of any trade agreements that either party could be a part of. Furthermore, it also makes exemptions for investments that might fall under the ambit of credit unions and require both sides of the contract to protect the interests of the other party under all circumstances.
Agreement with the United Kingdom
These terms are similar to the other treaties signed with China, Netherlands and Austria. The one difference is perhaps how either of the two countries committed to creating opportunities to invest on either side of the border to extend the utmost protection to either.
How Do These Treaties Work?
A corporation is a legal entity that is treated separately from the individual that owns the company. As such, there are different laws and regulations that apply to these corporations which may not be the same as those which apply to an individual. If you incorporate a company in Belize, you will not only have access to one of the most secure financial sectors in the world, but you can also acquire the advantages of working in relation to some of the most profitable economies in the world.
Considering that the corporation will be a national of the Belizean nation, it will be extended the same protections as any other Belizean national would. When the profits you make from these financial activities across borders are sent back to you, you can just simply shift these into your offshore accounts in Belize, where there won’t be subject to any taxes or penalties at all.
In addition to this, with the high-interest rates you can generate with your savings in the banking system in Belize, you have the opportunity to supplement your existing wealth from these interest earnings. Here’s the kicker though; all of these earnings will be tax-free.
Incorporating in Belize
Setting up your own company in Belize is perhaps one of the most convenient ways to set up a company throughout the world. The process is rather simple and you can start your own company online through assistance from the numerous incorporating services in Belize itself. You need to remember, though, that only licensed incorporating companies have the authority to manage the incorporating process. The documentation requirements aren’t very complicated either, not to mention the fact that most of the paperwork will be processed by your incorporation services as well. In most cases, you can have your own company incorporated in Belize within 24 hours of your application and documentation is submitted.
Belize is a country that’s rearing its head to launch into the center of global economics in a very short span of time. With the advantages of working with international banks in Belize, as well as those of working within the economy itself, there is much to be gained from investing in the economy itself. I often advise my clients to consider Belize, not only because it falls in line with the goals of a perpetual traveller, but also because Belize offers commercial opportunities that potentially no other country would.
I hope you got great value from reading: Going Global: Belize’s Financial Sector. I would love for you to read our country guide for Belize. It will be a ton of value for you.
To open an offshore bank account in Belize, please contact us here.
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About The Author
Mikkel Thorup is the host of The Expat Money Show podcast and Director of Content at Escape Artist. He is also the author of #1 Best-Selling book Expat Secrets on Amazon. He has spent nearly 20 years in continual travel around the world, visiting more than 100 countries including Colombia, North Korea, Zimbabwe, and Iran. His goal is to help people just like you to generate additional streams of income, eliminate your tax bill, and take advantage of offshore structures so you can travel the world freely and never have to worry about money again. For more information on his legal (but creative) tax strategies for Expats watch this free video.
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