Belize has become a very popular destination for tourists, and it’s known as a blessing for its tax advantages. Nowadays, Belize has become a very popular destination for Forex brokers, which is why lots of traders are looking for Forex brokers regulated by IFSC (Belize).
However, you may be more interested in Belize’s free trade zones, especially if you want to enjoy various tax benefits. If this is the case, here is everything you need to know when it comes to Belize’s free trade zones.
What Are Belize Free Trade Zones?
Belize Free Trade Zones refer to a category of special economic zones. They can be divided into two larger free trade zone types, respectively:
- The Commercial Free Zone (CFZ)
- The Export Processing Zone (EPS)
These zones cater to different warehousing, office, commercial, and manufacturing activities. In general, people who establish a business in a CFS conduct a wide range of commercial and trade activities, while those who establish a business in an EPS conduct exporting and manufacturing activities.
Belize has 2 CFZs and 3 EPZs at the moment. All CFZ and EPS businesses in Belize are governed by the Free Zone Act and the Export Processing Zone Act.
CFZs in Belize
The two CFZs in Belize are:
- Benque Viejo CFZ
This CFZ can be found on the western border with Guatemala. It is quite small and has less trade volume.
- Corozal CFZ
Corozal CFZ can be found in the northern area on the border with Mexico. It was the very first CFZ to support foreign investment in Belize. It generally deals with U.S. goods imports, then Mexico re-exports.
EPSs in Belize
There are three EPSs in Belize, respectively:
- Philip Goldson International Airport EPZ
This EPZ is found right next to the Philip Goldson International Airport. The airport is Belize’s busiest one.
- San Andres EPZ
The San Andres EPZ was the very first EPZ created in Belize, and it was established in 1992. It can be found in the Village of San Andres.
- Price Barracks EPZ
This EPZ uses around 14 acres of land, and it is also located near Philip Goldson International Airport.
Belize Free Trade Zones Benefits
Going for Belize’s free trade zones will have some advantages, respectively:
- Not having to pay sales taxes, trade turnover taxes, excise taxes, customs taxes, consumption taxes, tonnage taxes, or others for exports and imports
- EPZ-operating company dividends will be exempted from tax
- Belize EPZ businesses will get a 20-year tax holiday
- Unless the property is actually located in the EPZ, businesses do not have to pay land tax, property transfer tax, or property tax
- Incorporation is very quick
- CFZ businesses will get a 10-year tax holiday
- You do not have to file information regarding beneficial shareholders, directors, and owners
- The trade barriers are much lower, and you don’t need any export or import licenses if the material or good comes from or goes to a foreign country
Establishing a business in a Belize Free Trade Zone will bring you tax benefits and more. So, make sure to do your research on the right type of free trade zone before selecting one, and people who want to trade will come looking for you.