Investors who set up a trust in Belize benefit from all of the advantages of this offshore jurisdiction but also from advanced and protective legislation.
The Trust Act was amended and perfected in such a way as to make Belize an increasingly more attractive destination to base a trust and to provide sufficient options and flexibility for all investors.
Our Belize company formation agents can give you complete and comprehensive information on the trust laws in the country and the formation of this type of structure.
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Laws governing the formation of trusts in Belize
The Laws of Belize include the Trusts Act, which is the main legal resource for those who wish to open a trust in Belize. This Act was amended to provide for the registration of all domestic trusts.
Belize trusts offer a high degree of asset protection and these types of instruments may be used for asset protection and management or for asset/wealth growth due to the many tax advantages in the jurisdiction.
According to law, the trust is incorporated by the settlor who entrusts the trustee (another individual or company) to manage the assets that will be used by a third party (the beneficiary).
Investors who are interested in Belize offshore company formation can explore the features of the trust with the help of one of our experts.
Settlor, beneficiaries, and purpose
The settlor of a trust, the individual who will open a trust in Belize can be any person who, according to law, can own and transfer property. Additionally, the settlor can also be a trustee himself, a beneficiary or a protector within the trust he sets up in the country.
The following matters concern the beneficiary of a Belize trust:
- He/she must be identifiable;
- Can choose to disclaim his/her interest under a trust, or partly disclaim this interest (as may be stipulated in the terms of the trust);
- The trust provisions may include the addition of other beneficiaries or may exclude a certain beneficiary under its applicable terms;
- The benefits offered under the trust can be imposed via an obligation towards the beneficiary (a condition he or she will have to fulfill in order to receive the trust assets).
Individuals can choose to set up a trust in Belize that is charitable or non-charitable. The first category can be opened for purposes such as poverty relief, education, religious or environmental protection purposes, or other ones that serve the community.
If you are interested in setting up a charitable purpose trust, you should know that these activities do not need to be carried out in Belize. As would be the case with Belize offshore company formation, the trust/company is set up in Belize because of the local advantages, but its activities take place elsewhere. You can read below more about International Trusts that can be used in this manner.
A non-charitable trust can be created for any number of other purposes, provided that this is a specific and reasonable one and it can be fulfilled. Moreover, no purpose shall be unlawful, immoral, or contrary to the applicable public policy in Belize.
Key features of Belize trusts
Many investors are interested in Belize company formation because of the attractive taxation regime, the lack of reporting requirements, and the high degree of asset protection. However, this jurisdiction also has important advantages concerning the creation of trusts.
The following characteristics make Belize a favorable location to set up a trust:
- no corporate tax;
- no stamp duty or capital duty;
- thorough asset protection;
- no minimum capital;
- no foreign exchange control;
- a high level of investor anonymity.
Not only can foreign investors open a trust in Belize that will be used for non-charitable purposes (see below), but they can also set up international trusts. These are used as legal vehicles for asset protection and can only be set up by a licensed registered agent – a step with which our team can assist you.
If you are interested in international trust creation, the following fees are relevant:
- The registration fee for an International Trust is $100;
- A fee of $50 applies for the amendment of a registered trust;
- Document inspections are charged with $25.
Our agents can help answer all of your questions related to trust formation and offshore company registration in Belize. You can also receive legal advice on the process of opening a bank account for one of the entities prescribed here.
Requirements for trusts in Belize
If you are interested Belize company registration and in the creation of a trust here, you should know that certain requirements apply in terms of registration the trust as well.
The Register of Trusts is maintained by the Registrar of the Court and the following are required when making an application for registration:
- the certified copy of the instrument used to create the trust (if this is applicable);
- the $200 registration fee.
Once these are received and processed, the Registrar records the name of the trust, as well as the names of the settlor and that of the beneficiary. The purpose of the trust is also recorded.
Upon registration in Belize, the trustee receives a certificate. When the terms of the trust are changed, the trustee will inform the Registrar, pay a $100 fee, and receive an amended registration certificate once the changes are implemented in the Register.
Other services offered by our team
Individuals who set up a trust can choose to apply for temporary residency in Belize, provided that they are able to offer proof of their financial stability (and comply with other requirements). Those who relocate here can also be joined by their spouse or children, if applicable. Our team can give you more details about residency following an investment in the country.
If you are a Belizean permanent resident, our team will guide you through the process of applying for citizenship in Belize. While this is not obligatory, it is an option for foreign nationals who wish to remain in the country indefinitely and it depends on the period spent in the country lawfully, as a permanent resident, while also observing the condition to not leave the country for very long periods of time.
If relocation to Belize is of interest to you (whether alone or joined by family members), our team can answer important questions about immigration to Belize. The decision to relocate to a new country is an important one and having legal guidance throughout the mandatory steps is helpful for foreign nationals, irrespective of their nationality. You can reach out to us for more details.
Investors who have questions about trust creation and require guidance from our lawyers in Belize can reach out to our local team. We provide a number of legal services in Belize, focusing on business and commercial matters, but also offering solutions in other areas of law, such as immigration, real estate, employment, intellectual property, debt collection, and more.
You can contact us if you have questions on how to set up a trust or if you are interested in another form of investment in Belize.