Foreign Investments

According to the Exchange Control Regulations, Chapter 43 of the Laws of Belize (1980) only the Central Bank and authorized dealers and depositories may deal in foreign currency and an authorized dealer or the Central Bank must issue a foreign exchange permit. The Central Bank must also grant permission in order to secure a loan from outside Belize that involves a foreign currency and to service repayment of foreign debt. It is easy, however, for genuine, approved enterprises to secure the necessary transactions for these transactions.

To facilitate the repatriation of dividends, profits and so forth, foreign investors must register any investments made in Belize with the Central Bank.

Only authorized dealers and authorized depositories are permitted to retain any foreign currency in their possession without the consent of the Central Bank.

It is possible to open foreign exchange accounts at local banks with the consent of the Central Bank.

The following criteria is used by the Government of Belize to judge foreign investments:

• produces employment opportunities;

• uses of indigenous raw materials as efficiently as possible;

• earns foreign exchange;

• leads to increased production;

• introduces state-of-the-art technology;

• improves local management skills;

• promotes greater efficiency through competition;

• varies the economic base;

• facilitates access to foreign markets;

• is environmentally friendly.

It is possible to receive longer-term incentives for the location of industries in the less-developed rural areas of the country and for export-oriented projects or projects using technology not previously introduced into Belize. The government is partial to joint venture and partnership investments, but does allow one hundred percent foreign ownership of an enterprise.

The Development Finance Corporation (DFC) was created "to strengthen and expand the Belizean economy consistent with the macro-economic policies of the Government of Belize, by providing high quality, efficient implementation and management of Development Financing and related services on a financially viable or agency basis ensuring self-sustainability".

The DFC\'s main objective is to invest in Belizean companies, through the provision of loans the purchase of shares. It is mainly interested in companies that are majority-controlled by Belizeans; however, it also lends to foreign-owned Belizean companies. Furthermore, the DFC will provide factory shells for rent at its Industrial Estates at Ladyville (Belize District) and San Andres (Corozal District).

The following legislation outlines investment incentive:

• Fiscal Incentive Act, No. 6 of 1990;

• International Business and Public Investment Companies (IBC) Act 1990;

• Mines and Mineral Act 1988;

• Export Processing Zone (EPZ) Act 1990;

• Commercial Free Zone (CFZ) Act 1994.

• FISCAL INCENTIVES ACT 1990

Tax holidays and duty exemptions are offered under the Fiscal Incentive Act, No. 6 of 1990. These holidays are usually offered for five years and may be extended for up to another ten years. In the case of agricultural investment, these holidays may be extended for up to 25 years. A provision that the Minister for Economic Development may review a company’s operations and renew the tax-holiday period for a further term of up to ten years if said company makes an application and provides a “fit and proper” case.

Every company that has been granted an Approved Enterprise Order (Development Concession) to import into Belize, free of import duty and revenue replacement duty, a wide range of industrial machinery, construction materials and raw materials may take advantage of duty exemptions. Exemptions are usually given for 15 years, with a 10-year extension.

The terms of incentives are a Cabinet level decision and companies applying under the Act are required to be incorporated in Belize and applications have to be accompanied by:

• list of items requested for duty exemptions;

• a copy of Memorandum and Articles of Association;

• copy of Certificate of Incorporation;

• banker\'s reference on the bank\'s official letter-head;

• proforma profitability statement up to the second year of full production;

• land tenure deed;

• details of local inputs.

Application fees are dependent on the level of proposed investment and vary as follows:

• Investment between $250,000 and $500,000, fee $5,000.00;

• Investment between $500,000 and $750,000, fee $6,000.00;

• Investment over $750,000, fee $7,000.00