The tourism business in Belize is fueled by U.S. visitors…and business is good. Tourism is up…cruise ship tourism is way up (300% in five years). This is partially due to the ease with which you can get to Belize from the States—it takes two hours and 10 minutes to fly direct from Miami to Belize City.

If you live in Europe or Canada, there are no direct flights. But that’s all set to change…

Lufthansa, Swiss Air, and other major European airlines may begin regular direct flights to the newly expanded airport at Belize City in 2008.

“If the international route extension does go ahead, Belize will be pushed into the global limelight,” international property analyst Marc Da Silva recently wrote in Ireland’s Sunday Business Post. “Tourism levels are likely to improve, and there should also be increased demand for property to both buy and rent.”

Belize has done more than most countries to make itself a haven for foreigners who invest in real estate. Tax laws, ownership rules, and residency requirements are all written to attract anyone interested in Belizean property. And while real estate prices have recently risen in this stable, English-speaking nation, there are still bargains available, especially for those who know where to find them.

In fact, this might be an ideal time to look for bargains in Belize because prices seem to be rising a bit more slowly in upscale areas such as Ambergris Caye. The situation is the result of several events, including a downturn in the U.S. market that has discouraged some Americans from selling their houses at home and using the profits to buy overseas. In other parts of Belize, however, prices are continuing to climb at a steady pace.

Ambergris Caye is a 25-mile-long island in the crystal-blue sea off the northern coast of Belize. For many decades it has been one of the most popular destinations in the country. As a result, new oceanfront condos can sell for more than $350,000. But if you don’t mind a two-minute walk to the beach, there’s a wide choice of beautiful houses for less than $170,000. For a large percentage of residents, Ambergris is their second home. Gorgeous beaches aren’t the only attraction. The capital, San Pedro Town, has sandy streets where golf carts are the principal means of transportation to and from quaint restaurants, cyber cafés, and friendly mom-and-pop shops of nearly every variety.

Given all the attractions, it’s no surprise that Ambergris has a reputation for being over-developed and expensive, but property prices on Ambergris are actually lower than in some better-known tropical countries, and there are still property bargains if you take some extra time to look. For example, a large one-bedroom condominium (800 square feet) located about a mile south of San Pedro recently sold for $82,000. It’s especially important not to rush when searching for property in Belize. Like most other countries in the area, Belize doesn’t have multiple listings that are common in the U.S. That means you’re likely to find widely different prices for similar types of property.

Recent property listings on Ambergris:

• A lagoon-front parcel ready for building. Price: $25,000

• One-bedroom, one-bathroom units at the Casa De David condominiums in San Pedro. Price: $79,000 to $144,000

• A three-bedroom, two-bathroom house in the Escalante area of San Pedro. Price: $199,500.

For more information, contact Casa Cayo Real Estate , Buccaneer and Pescador Streets, San Pedro Town; tel. (501)226-2791 .

Although Stann Creek District is in the central part of the country, many Belizeans refer to it as the south, as they often do anything south of Belize City. While luxury abounds on the coast of Stann Creek, the area also retains more of its Caribbean atmosphere— food, entertainment, and architecture—than many other parts of the country, including Ambergris Caye and Corozal. In Stann Creek, beaches are wide and white, and many spots are almost empty except for the occasional egret or white ibis.

Though you only hear Creole and Garifuna accents occasionally on the streets of San Pedro, they’re very much the norm in Stann Creek. Like Ambergris, however, at least one area in Stann Creek—Placencia—has the reputation for being over-developed.

Many other parts of the coast have been slower to attract expats, and it’s there that property bargains abound. Placencia, a peninsula at the southern end of Stann Creek, has attracted second-home owners for several decades. It’s only a couple hours’ drive from Belize City, or 25 minutes by plane. Around the peninsula, which juts out between the Caribbean and the Placencia Lagoon, the water is ideal for fishing, diving, snorkeling, boating, or just watching the manatees. On the peninsula is Placencia Village, an old fishing village that hasn’t lost its small-town charm despite the new hotels, sophisticated restaurants, and a growing number of expats.

Sunset Pointe is one of the newer and more luxurious of the exclusive communities in Placencia. Pre-development prices start at about $280,000, while existing residences are more costly. Located within walking distance of Placencia Village, the two- to four-bedroom condos are air-conditioned and have name-brand appliances, granite countertops, and garden tubs in the master bathrooms. Outside amenities include a swimming pool, Jacuzzi, and a 225-foot sea wall with private boat dock. For more information, contact Sunset Pointe, tel. (from the U.S.) (904)471-3599.

On the Placencia Peninsula itself, property prices can be high, as they are on Ambergris, but bargain real estate is still easy to find in many other areas close by, especially to the north in Sittee Point, Hopkins, and Dangriga. Many people say that the village of Hopkins reminds them of Placencia a few years back. Even the appearance of telephones about 10 years ago hasn’t detracted from Hopkins’ charm and friendliness. Bargain hunters frequently visit Hopkins, where quarter-acre lots in the waterfront Palmetto Grove community have been selling for $40,000 to $50,000. For more information on Palmetto Grove, tel. (501)615-2874.

Although Cayo is Belize’s largest district with 2,061 square miles, it’s also the most sparsely populated, with some 61,000 residents—or about 30 people per square mile.

That’s almost certain to change as more people discover the joy and excitement of living in the hills and rainforest, where the climate is cooler than it is on the coast. But despite the different surroundings, most places in Cayo are less than two hours by car from the sea, meaning that you can live in the rainforest and spend weekends—or even the day—on a Caribbean beach.

Property prices are at least as powerful an attraction as the cooler, inland climate. On our recent property scout of the area, the asking price for a three-bedroom house on 11 acres of land with avocado, grapefruit, mango, and orange trees was $154,900. In the Kon Tiki area closer to San Ignacio, a two-bedroom house was on sale for $59,000. At Hill Top Estates, residents enjoy cool breezes and a view of the surrounding rainforest.

Most lots in the small community are between a half-acre and 1 acre, and they sell for $14,000 to $19,000.

Recent property listings in Cayo:

• A three-bedroom house located at the edge of San Ignacio, with a yard that’s landscaped with flowers, shrubs, and palm trees. Price: $75,000

• A duplex with two bedrooms upstairs and three bedrooms downstairs, all overlooking the magnificent Yalbac Hills. Price: $125,000

• A three-bedroom, two-bathroom house on 2 acres of land by the Mopan River. Price: $175,000.

For more information, contact Diamond Realty, tel. (501)824-4450.

NEED TO KNOW

Eight things you should know before investing in Belize

1. Except for nationally protected land, Belize places no restrictions on foreign ownership of real estate.

2. Once you find property that you want to buy, don’t delay in making an offer. The market in Belize is simply too robust to wait. With the help of a real estate agent and attorney, prepare an Offer of Purchase to present to the property owner. It should include your name, the name of the seller, the property’s legal description, the purchase price you’re offering, and the terms of the deal.

3. You submit this with a deposit—usually 10%. Most real estate offices have a standard form they use for this. At this point an attorney can research the title and take care of the paperwork needed to complete the sale, including registering your title to the property. The earlier you engage an attorney, the better, and you should not use the same attorney as the seller.

4. While the vast majority of Belizean real estate agents are honest, a few may not be as diligent as they should be, especially in a fast-paced market. Moreover, even the best attorneys can make mistakes. For those reasons, it’s always wise to invest in title insurance. First American Title Insurance Company provides title insurance in Belize.

5. You’re likely to pay about 18% in closing costs. In addition to the 2% to 3% that attorneys charge, there’s a stamp duty (transfer tax) of 15%, as well as fees to register the property in your name.

6. Real estate tax: About 1.5% of the property’s assessed value, payable annually.

7. Non-nationals in Belize are liable for tax on income they generate in the country. Income tax is charged at the rate of 25%, and for residents of Belize, the first $10,000 in annual income is exempt.

8. To qualify for residency, an individual 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% of any employment income earned in Belize. There’s no graduated scale of taxation as there is in the U.S. and many other countries. In Belize the only income tax rate is 25%.

This income tax doesn’t apply to qualified retired persons (QRPs) because people with this status may not be employed in Belize (though the law doesn’t prevent them from being an employer). Even if you are not a QRP, you may legally avoid income taxes altogether by transferring income and assets (though not real estate) into a Belizean International Business Corporation (IBC). Dividends to you from the IBC are not taxable. A business tax in Belize is charged on all self-employment income. This tax is assessed on monthly gross revenues, as opposed to the personal income tax, which is assessed annually. The top rate is 25%. Since 2001, all foreign income is exempt from personal and business taxes. Only income derived from employment in Belize is taxable. Today, all pension income is also exempt. Though Belizean tax law is far simpler than the U.S. tax code, it’s always wise to consult a knowledgeable attorney, especially if you spend more than 183 days in the country during a calendar year.

What attracts property buyers to Belize?

• A low cost of living. Depending on lifestyle, an expat can live for 50% to 60% of what would be needed in the U.S.

• A tropical climate tempered by the trade winds

• Plentiful sports, including birdwatching, boating, caving, diving, exploring, fishing, and snorkeling

• A stable, democratic government. (Belize is a member of the British Commonwealth)

• A reasonably good transportation system that consists of adequate highways, moderately priced domestic airlines, dependable water taxis, and a bus service that’s steadily improving in quality. A domestic helicopter service began in late 2006

• A low-priced health care system that generally gets high marks for handling non-severe ailments. Health care in neighboring Mexico and Guatemala has an even better reputation

• Environmental-protection programs that restrict development in many areas. Hence, property prices benefit because these programs attract buyers who are interested in the country’s natural beauty, while discouraging rampant over-development.

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