Belize: Investing
FDI inflows in Belize have been volatile and low for several years. Due to the COVID-19 pandemic, Belize saw a significant decrease in FDI in 2020. According to the UNCTAD's World Investment Report 2021, FDI inflows decreased from USD 94 million in 2019 to USD 76 million in 2020. However, there have been some significant investments made in the country in recent years, including a new cruise ship docking facility at Port Coral, an investment of USD 67 million made by the Panamanian company 'Intercoastal Marine' , which should be done by the end of 2021. The FDI stock reached USD 2.4 billion in 2020. Tourism attracted most FDI due to the country's geographical position in the Gulf of Honduras and the development of ecotourism. Brazil, the U.S., Guatemala and Central American countries are Belize’s primary investors. The government encourages investment in agriculture, agro-processing, aquaculture, light manufacturing, food processing and packaging, tourism, tourism-related industries, business process outsourcing (BPOs), and renewable energy. Export-orientated businesses operating in less developed areas also receive preferential treatment.
According to the World Bank's last Doing Business Ranking, published in 2020, the country ranked 135th out of 190 countries, losing ten spots compared to the previous year. Nevertheless, the country showed improvements for investors, as Belize made getting electricity simpler and faster, and also made trading across borders easier by enhancing its risk-based management system. Belize encourages foreign investment, perceived as a way to relieve fiscal pressure and diversify its economy. A variety of investment incentives are offered by the Government of Belize, and they have recently made trading across borders easier by enhancing its risk-based management system. Also, Belize has no restrictions on foreign ownership or control of companies. The Belize Trade and Investment Development Service (Beltraide) is the investment and export promotion agency, and it promotes FDI through a series of incentive packages. The country features a relatively qualified working force, political stability, its proximity with the USA and being anglophone. However, Belize is a small market, lacking competitivity with other central American countries due to a high cost of doing business there. Investors also complain about the lack of transparency, land insecurity, red tape and corruption. The country must improve access to credit, protect minority investors and resolve insolvency to become a more attractive investment opportunity. The EU listed Belize as a "non-cooperative jurisdiction for tax purposes" due to not meeting good practice standards.
| Belize | Latin America & Caribbean | United States | Germany | |
|---|---|---|---|---|
| Index of Transaction Transparency* | 3.0 | 4.1 | 7.0 | 5.0 |
| Index of Manager’s Responsibility** | 4.0 | 5.2 | 9.0 | 5.0 |
| Index of Shareholders’ Power*** | 7.0 | 6.7 | 9.0 | 5.0 |
Source: Doing Business - Latest available data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
| Foreign Direct Investment | 2019 | 2020 | 2021 |
|---|---|---|---|
| FDI Inward Flow (million USD) | 94 | 76 | 128 |
| FDI Stock (million USD) | 2,331.3 | 2,407.5 | 2,535.3 |
| Number of Greenfield Investments* | 1.0 | 0.0 | 1.0 |
| Value of Greenfield Investments (million USD) | 19 | 0 | 8 |
Source: UNCTAD - Latest available data
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Zero-rated items include: exported goods and services; some food items for human consumption, water supply (other than bottled water) and some medicines and medical supplies for human use; some items and supplies for use in education; some supplies connected with agriculture, livestock, birds and fish, crustaceans and molluscs.
Exempt supplies of goods and services include: some financial services and gambling supply; some supply of goods and services by an educational institution within the meaning of the Education Act; medical, dental, hospital, optical and paramedical services, other than veterinary services and cosmetic surgery; supply of residential accommodation or accommodation in a hotel or similar establishment; public postal services, domestic public transport of passengers, lease of aircraft and maintenance services in connection with the supply of public air transport; international transport of passengers or goods; some supplies of services provided to diplomatic missions, international and regional organizations; goods and services provided to the Government of Belize.
| Income tax | Flat rate of 25% |
| • for persons earning below BZD 26,000, personal relief is BZD 25,600 • for persons earning between BZD 26,000.01 and BZD 27,000, personal relief is BZD 24,600 • for persons earning between BZD 27,000.01 and BZD 29,000, personal relief is BZD 22,600 • for persons earning BZD 29,000.01 and over, personal relief is BZD 19,600 |
| Belize | Latin America & Caribbean | United States | Germany | |
|---|---|---|---|---|
| Number of Payments of Taxes per Year | 29.0 | 28.2 | 10.6 | 9.0 |
| Time Taken For Administrative Formalities (Hours) | 147.0 | 327.5 | 175.0 | 218.0 |
| Total Share of Taxes (% of Profit) | 31.1 | 46.8 | 36.6 | 48.8 |
Source: Doing Business - Latest available data.
| Setting Up a Company | Belize | Latin America & Caribbean |
|---|---|---|
| Procedures (number) | 9.00 | 8.00 |
| Time (days) | 48.00 | 25.22 |
Source: Doing Business.
Any Comment About This Content? Report It to Us.
© eexpand, All Rights Reserved.
Latest Update: April 2023
