Episode 9: How to Structure Your Belize Purchase for Tax Efficiency and Asset Protection

Today we're talking about the unsexy stuff that can save you a fortune—how you hold title to your property in Belize. Structure affects your taxes, estate planning, liability protection, and how easy it is to sell or transfer later.

Disclaimer: This is not legal or tax advice. David shares what smart buyers actually do—then you talk to your own professionals.

In This Episode:

• Why structure matters (and why fixing it later is expensive)
• The 4 main ownership options in plain English
• David's rule of thumb for most buyers
• Myth of the Week: "Structure doesn't matter—I can always fix it later"
• Listener Question: "If I buy one condo for personal use and some rentals, do I really need an LLC?"

Why Structure Matters:

If you change structure after you buy (personal name to LLC or trust), you'll likely trigger stamp duty and legal fees again—you're transferring ownership even if it's to yourself. Getting it mostly right before closing is much cheaper than untangling it 5 years later.

The 4 Main Options:

1. Personal Name
✓ Simple, cheap, easy to understand
✓ No annual company fees
✗ No liability shield—lawsuits come after you personally
✗ Heirs may face slow, expensive probate
Works for: One condo, simpler situations, paired with good insurance

2. Belize LLC
✓ Liability protection—lawsuits go after the LLC, not you
✓ Easier to sell/transfer by moving shares
✓ Estate planning benefits—shares pass to heirs
✗ Annual fees ($500-$1,500/year)
✗ Extra IRS reporting for U.S. citizens
Works for: Rental properties, standalone homes, liability concerns

3. IBCs and Offshore Companies
• Belize IBCs CANNOT own land in Belize
• Other jurisdictions (Nevis, Anguilla, Bahamas) trigger heavy reporting for U.S. citizens
• Belize is moving away from these in favor of standard LLCs
For most buyers in 2025+, IBCs are NOT the right first option

4. Trusts
✓ Strong asset protection and estate planning
✓ Avoids probate in Belize (and maybe back home)
✓ Extra privacy—trust name shows, not yours
✗ Setup: $3,000-$10,000+
✗ Annual trustee fees: $2,000-$5,000
✗ Huge IRS reporting for U.S. citizens
Works for: Larger portfolios, complex estates, high liability exposure

David's Rule of Thumb:

• Single condo, mostly lifestyle: Personal name + solid insurance is usually okay
• Standalone home or serious rentals: Strong case for a Belize LLC
• Multiple properties, high-risk profession, big estate: Talk trusts and advanced planning with pros on both sides of the border

"Own nothing. Control everything." — That doesn't mean hide. It means be intentional about what your name is directly attached to.

Key Takeaway:

How you buy in Belize can matter as much as what you buy.

Connect:

📧 david@1stchoicebelize.com (for referrals to closing teams and accountants)
🏠 RE/MAX 1st Choice Belize

Next Episode: Financing Your Belize Purchase — What's Real and How Buyers Actually Do It]]>