Live Tax-free In Belize

 
Dear Overseas Opportunity Letter Reader,

With everything going on in the world right now, your mind may be drifting to thoughts of escape.

Wouldn't it be nice to have a safety net?

Here's one, in a beautiful, English-speaking retirement haven in the Caribbean.

Ten years ago, the government of Belize, a tiny nation at the intersection of Central America and the Caribbean, enacted legislation to allow Qualified Retired Persons (QRP's) to obtain permanent residency in their country. In many ways, this program is the most efficient route to foreign residency anywhere in the Americas.

Furthermore, you can enjoy the benefits of being a QRP even if you spend as little as two weeks a year in Belize. Or, if you want, you could become a full-time resident. Right now, running away to a new life in the Caribbean doesn't seem like such a bad idea.

Belize's QRP program offers not only the equivalent of a U.S. Green Card to foreign residents aged 45 and older, but it also grants a host of other incentives designed to encourage foreigners to come and bring their money. These incentives include a permanent exemption from any Belize taxes, including income tax, capital gains tax, estate tax, and import tax on household goods, automobiles, boats, even airplanes.

The only requirements for the program are that you or your spouse be 45 years of age or older, that you consider yourself to be retired, and that you show that you have at least US$2,000 a month in income to support yourself in Belize. While pension income can be shown to meet the last requirement, the easiest way to prove financial means is simply to deposit a minimum of US$24,000 into a Belizean bank account.

In practical terms, the "consider yourself to be retired" requirement means that, as a QRP, you can't apply for a work visa. This is not to say that you can't do international, internet, or even local Belize business as an entrepreneur. You just can't take on traditional "employee" work. And, indeed, Belize offers a world of opportunity for the would-be entrepreneur.

Here's the important point right now: The QRP program is under pressure. The original law allowed for up to 20,000 QRP retirees. This cap has been reached, and, in this country of only 270,000 people, the number of QRPs is significant.

In last spring's national elections, the then opposition UDP took the position that the program should be ended and, in particular, that the tax incentives should be eliminated.

Now the UDP government is struggling. Should they continue a program that generates fee income and bank deposits and that directly and indirectly creates jobs in the housing and tourism industries...or should they keep their campaign promise and phase out the QRP legislation?

No matter how the debate resolves itself, it is likely that new QRPs, once the new resolution is reached, won't enjoy all the benefits of current QRPs. Folks who get in under the current program will maintain all their privileges, regardless of any future changes or even if the program is eliminated altogether. The benefits are, essentially, a contract between the individual retiree and the government of Belize, and the contract cannot be unilaterally altered by any future Belize government.

That is what happened in Costa Rica, for example. Initially, an attractive retirement residency was created. Then, over time, the benefits were reduced until, now, they are have been all but eliminated. The difference is that, in Costa Rica, existing pensionado retirees weren't grandfathered. When the pensionado program was eliminated, so were their benefits.

Insiders think this issue will come up in the Belize National Assembly after the year-end holidays. That leaves just about 90 days to submit an application under the current law and to receive all the current benefits.

Even if you are not contemplating retiring for one, three, or even, say, five years, this is the time to apply and to lock in the benefits of the current QRP law. Once you've qualified, a two-week holiday in Belize each year will maintain your QRP residency status while you work toward your ultimate retirement plan.

In fact, this program can work well for you not only if your ultimate plan is to retire to Belize...but also if your plan, simply, is to travel and move around in retirement. If you are a U.S. citizen, this Belize QRP program is an opportunity to qualify as non-resident in the States for tax purposes. You could spend a few months a year in the U.S....maybe winter in Central or South America...then do a little traveling in Europe or Asia...remembering to spare a couple of weeks from your globetrotting to visit Belize.

Under these circumstances, the benefits of the QRP program could be significant, especially if you have active business income from outside the States. In this case, as a non-resident, you could exempt your first US$87,600 in foreign-earned income, along with a housing allowance of approximately US$12,500, not only from Belize tax, but also from U.S. federal tax.

This stuff gets really complicated really fast, so you'll need help and guidance. Bottom line, though, Belize QRP status can be the foundation for an effective tax-reduction, maybe even tax-elimination strategy.

For nearly 15 years, I've worked with a U.S. attorney focused on international tax-planning and asset-protection strategies named Joel Nagel. Joel has been helping people take advantage of the benefits of Belize's QRP program since its inception. In an effort to help Live and Invest Overseas readers interested in exploring this residency and tax-planning option, he has teamed up with a Belize immigration firm to provide full and efficient fast-track assistance.

Furthermore, Joel has negotiated a special package discount. Firms in Belize charge US$10,000 and up to as much as US$25,000 per person for this kind of fast-track service. For 90 days, though, through the start of the year, when the Belize National Assembly is expected to take up this QRP question, Joel can help you organize your QRP residency status for only US$4,350 for an individual and only US$5,150 for a couple.

This special couple rate is truly extraordinary. Some Belize firms charge simply two times the individual rate for a couple.

The timing for this opportunity is fortunate. Belize QRP status could be an important part of your long-term retirement plan...and of your right-now safety net.

Get in touch with Joel for more information now: QRPresident@liveandinvestoverseas.com

Kathleen Peddicord