Belize Economy Overview

Currency

Belize Dollar (BZD)

Working hours

40 hours/week

Public/bank holidays

13 public holidays

Capital

Belmopan

Languages

English (Spanish and Belizean Creole are also widely spoken)

Population

~441,500

Minimum hourly salary

BZD 5.00

Tax year

1st Jan – 31st Dec

Date format

DD/MM/YYYY

Misclassification penalties

Employers who misclassify employees as independent contractors can face fines, retroactive benefits payments, and penalties through the Belize Labour Department, particularly under the Labour Act and Social Security Board (SSB) enforcement. Penalties may include payment of unpaid contributions and potential legal action.

Fun fact

Home to the Belize Barrier Reef, the second largest in the world, and a UNESCO World Heritage Site.

Home to the second-largest reef in the world, along with the majestic Mayan ruins, Belize is not only a popular tourist destination but is also attractive to investors. Foreign businesses choose to expand in Belize for its pro-business climate and economic stability. 

Belize supports local and foreign businesses with financial incentives and favorable tax policies. It has earned a positive reputation for ease of doing business, as international firms can register a company in the Caribbean country quickly and cost-effectively. 

To promote economic development, Belize is a member of the Caribbean Community (CARICOM). The benefits of being a member state include a better quality of life for residents and economic leverage in international trade and negotiations. 

If you are looking to do business in Belize, determine which local laws apply, whether establishing a legal entity or hiring a workforce. 

To expand in Belize, this guide explores the local business regulations, reasons for starting a business in Belize, and how services provided by an Employer of Record or a recruitment agency make hiring employees more compliant and efficient.

Overview of Belize's Economy

Belize has a positive economic outlook owing to reductions in inflation and moderate GDP growth. The GDP in Belize increased by 10.5% in the first half of 2024, reaching $3.07 billion.

Belize’s economy is supported by different industries such as tourism, agriculture, and the services sector, including IT. Tourism is a significant economic driver and reached record-breaking highs with a 23% increase in 2025.

Category Details
GDP (2024 est.) USD 2.6 billion
GDP Growth Rate ~4.5% annually (driven by tourism and agriculture recovery)
Major Industries Tourism, Agriculture, Aquaculture, Forestry, Energy, Outsourcing
Top Exports Sugar, Bananas, Citrus, Marine Products, Crude Oil
Top Trading Partners United States, United Kingdom, European Union, Mexico
Labor Force Size ~190,000 people
Unemployment Rate ~9.8% (2024 est.)

The agriculture, fishing, and forestry sectors are worth mentioning, as they contributed $224,28 million to GDP in 2023, accounting for around 8% of GDP. 

The World Bank describes Belize as an upper-middle-income destination with an export-focused economy. Its major export partners are the U.S. and Mexico.

Taxes

Employer Tax: 5% – 8.13%

Social Security

5% – 8.13%

Employee Tax: 1.88% – 4.50%

Social Security

1.88% – 4.50%

Income tax

Income above BZD 29,000 is taxed at a flat rate of 25%. Non-residents pay 25% on all Belize-sourced income.

Gross Income

Up to BZD 29,000

More than BZD 29,000

Tax Rate

    0%

    25%

Business Regulation in Belize

Whether you are starting a business or expanding your workforce in Belize, there are regulations you must follow to remain compliant. Failing to adhere to these rules and processes can result in penalties or significant delays in business operations.

To help you through these requirements, an overview of Belize’s business registration, tax policies, and incentives can provide clarity when expanding your workforce:

Registration and Compliance

Registering a business in Belize is fairly straightforward. The Belizean government has simplified regulations to encourage foreign investment and create employment. All businesses operating in Belize must register with the Belize Companies & Corporate Affairs Registry (BCCAR).

Incorporation requires the submission of formal documents, such as Articles of Incorporation, and registering for tax and social security. 

Taxes and Investments

The corporate income tax starts at 1.75% and goes up to 19% based on your sector. For example, newspaper businesses qualify for a 1.75% corporate income tax, whereas telecommunications services are subject to a 19% income tax.

General sales tax applies to an annual turnover of BZD$ 75,000 at a rate of 12.5%. 

The Income and Business Tax Act governs corporate taxes in Belize and requires that companies pay the relevant corporate tax based on their classification. 

Investment Incentives

To welcome foreign investment, the Belizean government has introduced the Fiscal Incentive or FI program. This program grants an import duty and excise duty exemption for eligible businesses. Under this incentive, companies do not pay business tax.

Belize belongs to CARICOM, which provides access to 15 member states, including Jamaica, the Dominican Republic, Barbados, Saint Lucia, Haiti, and Bermuda. CARICOM includes trade agreements such as the free trade of services and the free movement of goods and capital. CARICOM nationals also have the right to establish businesses in the member states.

Benefits of Doing Business in Belize

Belize provides numerous benefits for foreign companies, from low taxes to a strategic location. Discover why more firms are establishing themselves in the Central American country:

Low Taxes and Incentives

While Belize has a progressive tax system for entrepreneurs and corporations, it is considered a tax haven for domestic and international businesses. The corporate income tax is industry-based, ranging from 1.75% to 19%. There is no payment of capital gains tax in the country.

Incentivized business programs encourage international firms to operate locally by offering tax exemptions.

Pro-business Environment

Because Belize has adopted a business-friendly culture, domestic and foreign entities can start a company relatively quickly and easily. International businesses, in particular, can avoid bureaucratic hurdles owing to a clear legal framework.

Access to Major Markets

Belize’s geographical location facilitates international market access, providing cost-effective trade and transport to export partners such as the U.S. and Mexico.

Downsides of Doing Business in Belize

To successfully incorporate a business or expand your workforce in Belize, remain aware of the following potential challenges and how to overcome them:

  • Bureaucratic challenges: While setting up a new business is fairly straightforward in Belize, conducting operations can be hindered by a lack of regulatory transparency. Seeking legal counsel or partnering with a professional EOR in Belize can minimize these challenges. 
  • Small Domestic Market: The domestic market in Belize is quite small, which means that businesses might encounter restrictions in distribution and customer reach. Fortunately, Belize is a CARICOM member and has free trade agreements with 15 other countries. It has also established the United States and Mexico as major export partners.

International Expansion Into Belize

There are options for international companies interested in expanding in Belize, from incorporating a subsidiary to benefiting from the flexibility of a branch office. Alternatively, the services of an EOR, recruitment agency, and PEO will make hiring top talent efficient and affordable.

Belize Employer of Record (EOR)

The EOR in Belize serves as the legal employer of your foreign workforce. They provide services such as payroll, benefits administration, drafting employment contracts, and contract termination. The EOR focuses on keeping your Belizean business compliant; however, you remain in control of the daily tasks provided to your workforce.

Recruitment Agencies

A Belize recruitment agency will connect client companies to vetted job candidates based on the requirements of the position. The services you can expect from a professional recruiter include conducting interviews, assessing and placing candidates, and assisting with contract negotiations. Recruitment agencies make the hiring and placement process more efficient and affordable.

Belize Professional Employer Organization (PEO)

For businesses in Belize in need of HR and payroll assistance, a PEO offers outsourced services. The Belizean PEO is a co-employer because it shares workforce responsibilities with the employer; however, the employer remains legally liable for employees. The PEO aids with benefits administration, compliance with labor laws, and drafting employment contracts.

In Belize, you do not require a legal entity to hire the services of a licensed PEO.

Subsidiary Incorporation

Incorporate a subsidiary in Belize with these steps: 

  • Select a distinct business name and appoint a registered agent and a registered office in Belize. 
  • Prepare formal documents, such as Articles of Incorporation and company bylaws. 
  • Visit the BCCAR’s Online Business Registry System (OBRS) and choose the “Register a new business” section. 
  • Upload the documents (Articles of Incorporation) and pay the filing fee. 
  • Businesses with an annual turnover of more than $75,000 must register for sales tax.

Branch Registration

Opening a branch in Belize is simple and starts with registering the business name with the OBRS. According to the Belize Chamber of Commerce and Industry, all foreign and local branches must have a trade license based on the business’s operations. This applies to all municipalities in Belize.

A trade license must be obtained from the local city council, and businesses must register with the BCCAR.

Staffing Agency

The staffing agency serves as an intermediary between employers and workers. They not only help client companies find local talent, but they also assist individuals in finding employment. The expert staffing agency conducts interviews, screens job candidates, and advises on employment contracts.

Business Opportunities in Belize

Belize is favored for doing business because it welcomes foreign investment and has introduced reforms to make business registration simpler. The country’s progressive tax system favors strategic industries by issuing reduced corporate income tax rates. 

There are many key sectors that make for attractive investments, including tourism, agriculture, real estate, and renewable energy. In Belize, wages are up to 50% lower than in North America, and companies can take advantage of hiring a skilled labor force. 

Belize offers a range of profitable business opportunities thanks to its rich natural resources, English-speaking population, and growing tourism and agriculture sectors. Investors looking to tap into emerging markets with eco-conscious appeal will find Belize’s relaxed regulatory environment and geographic location especially attractive.

Business Opportunity Why It’s Profitable
Eco-Tourism and Adventure Travel Belize’s natural attractions, Mayan archaeological sites, and barrier reef continue to attract eco-conscious travelers and support profitable tourism businesses.
Agri-Business (Citrus, Sugar, and Cocoa) Fertile land and favorable growing conditions support export-oriented agriculture, with steady international demand for key crops.
Offshore Services Belize’s established offshore financial sector creates opportunities for investment services, trusts, and international business support.
Real Estate and Property Management Growing interest from foreign buyers and retirees continues to drive demand for residential, vacation, and investment properties.
Renewable Energy Solutions National sustainability goals and demand for reliable energy infrastructure create opportunities in solar, wind, and off-grid energy projects.

Whether you’re drawn to nature-based tourism or export-driven agriculture, Belize presents a compelling mix of opportunity and accessibility. With the right local partnerships and a long-term outlook, business ventures here can yield meaningful returns.

To help you with successful and compliant business expansion into Belize, it is important to partner with employment service providers, such as an EOR or recruitment agency, to simplify hiring top talent. 

Global recruitment specialists, Remote People, assist client companies with hiring and placing top talent in Belize. The recruitment specialists also make entering local markets smoother, and they place fully vetted candidates based on a full assessment for technical expertise and leadership qualities.