Offshore entities may take the following forms:

IBC´s

Trust

Offshore Bank

Licenses are required only for financial institutions. 

Corporations do not have to disclose beneficial ownership, and Trusts need not disclose the names of their beneficiaries.

Under the International Business Company Act of 1990, IBC's are exempt from most types of taxation. Exemptions include:

All income of an IBC;

All dividends paid by an IBC to persons resident in Belize or elsewhere;

All interests, rent, royalties, compensations and other amounts paid by an IBC to persons who are not residents in Belize.-

Capital gains realized on any shares, debt obligations or other securities of an IBC by persons who are not residents in Belize

IBC's are exempt from the payment of stamp duty on:

All instruments relating to transfer of any property to or by an IBC;

All instruments relating to transactions in respect of the shares, debt obligations or other securities of an IBC;

All instruments relating in any way to the assets or activities of an IBC.

Provided that the settlor is not resident in Belize during a tax year, that none of the beneficiaries are resident in Belize during that year, and that the trust property does not include any land situated in Belize, exemptions include:

The income of the trust for that year from all provisions of the Income Tax Act;

No estate, inheritance, succession or gift tax or duty is payable with respect to the trust property by reason of any death occurring during that year; and

No stamp duty is payable on all instruments executed in that year and relating to the trust property or to transactions carried out by the trustee on behalf of the trust.

For the purposes of the Exchange Control Regulations, 1976, with regard to the trust property and to all transactions carried out by the trustee on behalf of the trust, a trustee of an exempt trust is considered non-resident.

A Belize Offshore Bank is exempt from all forms of taxation on its profits or gains, or upon any interest or dividends earned in respect of banking business carried on from within Belize; also there is no stamp duty on Bills of Exchange or promissory notes or any other document, instrument or certificate executed by or in connection with an offshore banking business.

The annual license fee for a Class A (Unrestricted) Banking License is $20,000; the annual license fee for a Class B (Restricted) Banking License is $15,000.

This section refers to the taxation of foreign employees of offshore operations, see Domestic Personal Taxes for the general principles of individual taxation in Belize, which also apply to the resident employees of offshore entities.

There is no distinction between foreign and Belizean employees, whether or not the business is 'offshore'. Tax is deducted under the 'PAYE' system, and there are compulsory social insurance contributions.

Under the Exchange Control Regulations, Chapter 43 of the Laws of Belize (1980) only the Central Bank, authorized dealers and authorized depositories may deal in foreign currency, and a foreign exchange permit must be obtained from an authorized dealer or the Central Bank. 

The permission of the Central Bank is also required in order to secure a loan from outside Belize which involves a foreign currency, and also to service repayment of foreign debt.

The necessary approvals, however, can be easily secured in the case of genuine, approved enterprises. Foreign investors are required to register any investments made in Belize with the Central Bank to facilitate the repatriation of profits, dividends, etc.

The IBC act prohibits an IBC from:

Carrying on business with persons resident in Belize;

Owning an interest in real property situated in Belize, except lease property for office purposes;

Carrying on banking business;

Carrying on insurance or reinsurance business;

Carrying on the business of providing registered agents/offices for companies.

Belize IBC may engage in any activity that is not unlawful in Belize.

A Belize Offshore Bank can carry on the following activities within Belize:

Establish, maintain, and operate a business office in Belize;

Transact offshore banking business through its business office in Belize without restrictions;

Transact offshore banking business with a local entity in Belize licenced under the Banks and Financial Institutions Act, 1995

The introduction in the early 1990's of International Business Company legislation, together with a range of other offshore enabling laws, led to growth of interest in Belize as a low-tax jurisdiction.

From 1990 to 1997 roughly 3,000 offshore companies were registered in Belize. Growth then accelerated: by March 2000, the total number of offshore companies reached 14,000.

Offshore jurisdiction ratings issued by Swiss company Guaranty Trust Ltd put Belize at the head of its list, judged according to a variety of criteria including banking secrecy, legal system, communications and tax regime.

In addition to an IBC law, Belize now has legislation in place for Ship Registration, Trusts, Offshore Banking, Computer Wagering, Limited Life Companies, Limited Liability Partnerships, Mutual Funds, International Insurance, Protected Cell Companies, and a Financial Services Commission to regulate and monitor the industry.

Offshore banking in Belize began when the outdated 1977 Banking Act, which did not adequately provide for a sound regulatory and supervisory authority, was repealed and replaced by the enactment of the Banks and Financial Institutions Act, 1995, and the introduction of the Offshore Banking Act, 1996, and the Money Laundering (Prevention) Act, 1996, which incorporated the best features of offshore banking legislation in Panama, Cayman and the British Virgin Islands.

A Belize Offshore Bank can carry on the following activities within Belize:

establish, maintain, and operate a business office in Belize;

transact offshore banking business through its business office in Belize without restrictions;

transact offshore banking business with a local entity in Belize licenced under the Banks and Financial Institutions Act, 1995.

The major local banks offer a full range of international banking services including foreign currency savings and checking accounts earning tax-free interest and operated for the purpose of exchange control on a non-resident basis. Such accounts are offered to IBCs, individuals and trustees. Credit card services are also available.

Belize Offshore Banks are not subject to exchange control regulations.

The Central Bank of Belize, the financial sector's regulatory and supervisory body, says that although many applications for offshore banking licences have been received since the introduction of the new legislation, only two have successfully met its requirements.

Two categories of Belize Offshore Banks are currently available

"A" Class 

Unrestricted and "B" Class - 

Restricted. A "B" Class bank is restricted to carrying on such business as is specified in its license. 

Both types of bank need to have local offices, but a "B" Class bank is not allowed to solicit deposits from local residents.

Offshore banking in Belize began when the outdated 1977 Banking Act, which did not adequately provide for a sound regulatory and supervisory authority, was repealed and replaced by the enactment of the Banks and Financial Institutions Act, 1995, and the introduction of the Offshore Banking Act, 1996, and the Money Laundering (Prevention) Act, 1996, which incorporated the best features of offshore banking legislation in Panama, Cayman and the British Virgin Islands.

A Belize Offshore Bank can carry on the following activities within Belize:

Establish, maintain, and operate a business office in Belize;

Transact offshore banking business through its business office in Belize without restrictions;

Transact offshore banking business with a local entity in Belize licenced under the Banks and Financial Institutions Act, 1995.

The major local banks offer a full range of international banking services including foreign currency savings and checking accounts earning tax-free interest and operated for the purpose of exchange control on a non-resident basis. 

Such accounts are offered to IBCs, individuals and trustees. Credit card services are also available.

Belize Offshore Banks are not subject to exchange control regulations.

The Central Bank of Belize, the financial sector's regulatory and supervisory body, says that although many applications for offshore banking licences have been received since the introduction of the new legislation, only two have successfully met its requirements.

The holder of an "A" Class offshore banking licence needs to establish, maintain, and operate a business office (physical presence) in Belize. This type of Belize Offshore Bank is permitted to transact offshore banking business through its business office in Belize without restrictions on that business.

Authorised and paid up capital of not less than US $500,000 must be maintained if the licence is for a local company, or US $25,000,000 in the case of a foreign bank.

"B" Class - Restricted

The holder of a "B" Class offshore banking licence also needs to establish, maintain, and operate a business office (physical presence) in Belize, but they are limited to transacting only such offshore banking business as is specified in its licence. A "B" Class Belize Offshore Bank is prohibited from soliciting or accepting monetary deposits or any other valuable property from the general public, as well as from issuing cheque books or providing any current deposits or chequing account facilities to depositors.

Authorised and paid up capital of not less than US $200,000 must be maintained if the licence is for a local company, or US $15,000,000 in the case of a foreign bank.

Belize's Offshore Banking legislation stipulates that an entity is eligible to apply for an offshore banking licence if:

It is incorporated or registered under the Companies Act or the International Business Companies Act as a company limited by shares, or if it is a foreign bank;

Its shares are in registered form and not in bearer form;its memorandum and articles of association are acceptable to the Central Bank.-

Its authorized and paid up capital are in compliance with statutory requirements (see above).

Upon application, eligible companies must furnish the following documentation, along with a non-refundable fee of US $500:

name and address of directors and principal shareholders;

The ultimate beneficial ownership of the company or proposed company where shareholders of record are, or are to be, corporations, trusts or other legal entities or organizations, or where the shareholders of record are acting as nominees for or under the direction of any other person;

The shareholding structure, management, and financial standing of the company;

Detailed business and financial plans;

Particulars of referees, guarantors and other third parties;

Details of any subsidiary or affiliated company;

Details of any overseas office which the company has or proposes to open;

Names and addresses of the external auditors including the experience of the auditors in auditing banks;

If a foreign bank, a written statement confirming that there is no objection to the application from banking supervisory authorities in its country of incorporation and in the country where its principal office is located;

Signed application by the directors of the eligible company; and

Any other information that the Central Bank may require.

The Central Bank of Belize submits its recommendation to the Minister of Finance within sixty days of receiving a completed application. After which, a decision is rendered within four weeks by the Minister.

The Government considers several factors before granting development concessions to companies. These include: the company's local value addition, its profitability on investment, the potential for foreign exchange earnings or foreign exchange savings, the creation of employment, the transfer of new technology, the location of industry, the destination of the final products - export/domestic market, and the level of investment.

The following is required in order to obtain the status of an approved enterprise:

Establishment of a Chapter 206 Corporation;

Formal letter of application addressed to the Permanent Secretary in the Ministry of Economic Development;

Three copies of the project proposal, providing as much information about the project as possible;

The prescribed non-refundable fee, which varies depending on the size of investment as follows:

US $125,000 - $250,000, fee US $2,500;

US $250,000 - $375,000, fee US $3,000;

Over US $375,000, fee US $3,500.00

A "Belizean Company" with an investment of less than US $125,000 may apply without the payment of any fee. A "Belizean Company" is one which Belizean nationals own 51% or more of the share capital.

A number of other supporting documents are also needed.

Belize established a modern Belize Trust Act in 1992 which incorporated the best features of similar laws prevailing in other major offshore jurisdictions such as Cayman, Panama and Bermuda.

Trusts can be established either by oral declaration or by written instrument. 

However, unit trusts must be formal written documents and trusts over property in Belize are unenforceable unless they are written.

Non-charitable Belize Trusts have a maximum life of 120 years. 

Charitable trusts may be established with unlimited duration.

Trusts formed under Belize law are highly secure since a Belizean court cannot set aside or vary a Belizean trust. 

No Belize Trust has ever been compromised. 

A Belize court cannot entertain any claim against the trust property emanating from the order of a foreign court regarding marriage or divorce, or succession or claims by creditors in an insolvency.

The law provides for the creation of spendthrift trusts and allows a settlor to be the beneficiary of a spendthrift trust. 

Settlors and beneficiaries may give to trustees memoranda of wishes to guide the trustees.

The law allows for a protector who may also be a settlor, trustee or beneficiary. In carrying out his duties, a protector has a fiduciary obligation to the beneficiaries of the trust. However, he or she is not considered a trustee.

A trust can have a minimum number of one or a maximum number of four trustees (except for charitable trusts). 

A trustee may also be a beneficiary and a settlor. 

Liberal powers are given to trustees to advance moneys for maintenance and education of children and beneficiaries.

Individuals serving as Trustees are personally liable at law for any losses as a consequence of a breach of trust. However, in the case of a corporate trustee the directors are not personally liable.

Trusts may be registered with the Belize Registrar at the option of the settlor for a fee of US$100. 

The Registrar is required to issue a certificate of registration. 

An entry in the register of trusts cannot be opened for inspection without the written consent of the trustee.