In December 2024, Belize enacted the Stamp Duties (Amendment) Act, 2024, introducing significant changes to the existing stamp duty regulations. This legislation aims to provide financial relief to individuals and organizations by adjusting stamp duty rates and expanding exemptions.
Key Amendments:
- Mortgage Stamp Duty Adjustments:
- Exemption for Smaller Mortgages: Mortgages valued at $100,000 or less are now exempt from stamp duty. This change is designed to make homeownership more accessible for Belizeans.
- Reduced Rates for Larger Mortgages: For mortgages exceeding $100,000, the stamp duty rate has been set at 1.5% on the amount above $100,000. Additionally, assignments, transfers, reconveyances, releases, cancellations, discharges, or surrenders of such mortgages are subject to a 0.6% stamp duty on the amount exceeding $100,000.
- Stamp Duty on Transfer of Shares:
- Domestic Companies: Transfers of shares in companies incorporated in Belize are now subject to a 5% stamp duty based on the greater of the value or consideration of the shares.
- Foreign Companies: Transfers of shares in companies incorporated outside Belize incur a 7% stamp duty under the same valuation criteria.
- Expanded Exemptions:
- Government Transactions: Conveyances of property or interests to the Government of Belize are exempt from stamp duty.
- Religious and Charitable Organizations: Transfers of land intended as sites for churches or chapels, as well as conveyances to charitable organizations or trusts established solely for charitable purposes, are exempt.
- Family Transactions: Transfers of property between family members are now exempt from stamp duty, facilitating easier and more cost-effective intra-family property transfers.
These amendments reflect Belize’s commitment to fostering economic growth and providing financial relief to its citizens by reducing the tax burden on essential transactions.