Belize, nestled in the corner of Mexico’s Yucatan Peninsula, occupies a significant position within the Mundo Maya region. This region comprises five countries that have been inhabited by the Maya people for 3,000 years. As an English-speaking nation, Belize was known as British Honduras from 1862 until 1973, when it reclaimed its original name in preparation for independence from the United Kingdom. Interestingly, Belize was a favored sanctuary for English and Scottish pirates in the past.
Belize is not for everybody. That is the short answer. Better answer: If you think you can fit in anywhere, Belize is probably O.K. You probably landed here researching if you can live on U.S. $500. a month. Yes you can. Some people in the poorer areas of Belize, for example the Toledo and Corozal Districts get by on less than half that. But would you really like to live below the poverty line in a third world country? $1,000. a month is more realistic and even that is stretching it in 2024 with the increased global cost of living.
Introduction
“We’ve seen so many gringos give up and go home, and so many others still here who are burned out and bitter, that you sometimes feel there is really something insidious underlying the friendly surface appearances,” says an ex-Coloradan who runs a jungle lodge in western Belize.
For those willing to put up with the challenges – such as lack of high-tech medical care, a high crime rate in some areas, the high cost of food and imported items, more political corruption than you are accustomed to at home and the occasional hurricane – this country can be a wonderful place to live or retire.
With a big SUV in the driveway and imported American gasoline at over US$7. a gallon in 2024, the air conditioner turned to frigid and three fingers of single malt scotch in the glass, living in Belize can cost more than back home. But if you live as a local – eating the same locally produced foods Belizeans do, using public transport and living in a Belizean-style home with ceiling fans and cooling breezes – you can get by on a few hundred dollars per month.
Cost of Living
Fiction writer and retired beach bum Ray Auxillou says he and his wife, who live in Santa Elena in Cayo District, get by on less than US$600. a month, though they own their own home and don’t have to pay rent. Ray however lives in a back of town low income housing area with dirt or mud roads depending on the season. A middle-aged expat in Corozal says she rents a nice small house for US$250. a month. A couple in Caye Caulker, who own their own home, say their monthly budget is around US$1,000.
Combining some elements of both North American and Belizean lifestyles, you can live well for less than you would pay back home. Public health care, the cost of renting, buying or building a home in Belize, personal and auto insurance, property taxes, household labor and most products produced in Belize are less expensive than what you’re used to paying.
For many, living in this tropical getaway is cheaper than in the United States. “I need neither heating nor air-conditioning with their attendant bills, nor insulation in my house, nor much of a house, nor much in the way of shoes. One casual wardrobe serves all purposes except travel back to the USA,” one expat says.
If you know where to look, prices for a view of the sea or rural real estate will remind you of costs in the United States in the 1990s. In small towns, you can rent a pleasant house near the sea for US$300. to $800. a month, possibly less. Land in larger tracts can sell for US$200. an acre or less. Outside of high-cost tourist areas, you can build for US$30. – $60. per square foot or buy an attractive, modern home for US$75,000. – $200,000. Property taxes are low, rarely over $100. – $400. annually even for a luxury home.
Consumer Prices For Food And Fuel In Belize
In 2024 Belize has kept up with the global increase in the cost of living. The table below shows popular consumer items and the prices in Belize dollars for 2023 and 2024. The prices for staples such as brown sugar 50 cents per pound, red kidney beans $1.18 cents per pound and pigtail or snout in brine $7.00 per pound are not on this chart but we have included it for your convenience. As a sugar producing country, the retail cost of sugar is so low that it is exported as contraband to neighbouring Quintana Roo Mexico where white sugar (plantation white) retails for BZ$2.24. a pound (2024 price). “Minsa” as shown in the chart is nixtamalized instant corn flour imported from Mexico and used as a substitute for traditional milled local “masa” (corn meal) for making corn tortillas, tamales, salbutes, tostadas, empanadas, pupusas and other types of nutritious and economical Belizean food dishes.
Utilities And Vehicles
Despite the relatively high cost of food and electricity, and the pricey island real estate, the overall cost of living on Ambergris Caye (and on Caye Caulker) is lower than in the U.S., say many residents. In part, that’s because you don’t need all the things you do in the U.S. – no heating oil, no cars or auto insurance or parking fees, and no fancy wardrobe. Seafood and some Belize-produced food are comparatively inexpensive. Medical care, cable television, property taxes and basic internet service are among the items which are cheaper than back home.
Import taxes on motor vehicles in Belize are exorbitant – reason why most Belizeans – politicians and the elite excepted – drive used cars imported from the US and why the public transport systems operates on 25 year old or more retired American school buses. There is a steady market for accident and salvage motor vehicles in Belize. The table below shows the various import duties and taxes for motor vehicles imported into Belize. The highest tax, 75% is applied on the vehicles workers and families need the most – cars and minivans.
Money
In Belize, the prices and exchange rates are generally stable. The national currency is the Belize dollar, which is fixed at a rate of two to the US dollar (Bz$2 = US$1), making it easy to calculate exchange rates. However, US dollars are widely accepted and sometimes even preferred as currency, and this can create confusion. It’s important to clarify which currency is being referred to when making purchases, as some businesses in high-end expat destinations like San Pedro quote prices in US dollars.
The Belize dollar is divided into 100 cents, and banknotes come in denominations of 2, 5, 10, 20, 50, and 100 dollars. Coins come in denominations of 1, 5, 10, 25, 50 cents, and 1 dollar, although 10 and 50 cent pieces are not commonly used. All notes and coins feature a portrait of Queen Elizabeth, reflecting Belize’s British colonial history. Quarters are sometimes called “shillings.”
Weather
Belize, being located in a subtropical latitude, has a warm climate by North American and European standards and is often hot and humid. The temperature in any particular location is mainly determined by altitude. Evenings in the Mountain Pine Ridge forests are generally pleasant and cool, while the lowland jungle is sometimes steamy and humid. On the cayes, the sun’s heat is moderated by near-constant ocean breezes.
Belize experiences dry and rainy seasons, but sunshine is prevalent throughout the year. While rainfall can occur in any month, it’s usually not persistent enough to spoil a vacation. The dry season starts from February and lasts until May, and the final two months before the rains come can be hot. The rainy season is typically from June to November, with clear mornings and rainy afternoons that can last for an hour or two. During heavy rains, rural roads may be flooded, causing delays, particularly in the south. The heaviest rainfall occurs in September and October, which also happens to be the peak hurricane season that affects the Caribbean and the southern eastern United States. Although most severe storms follow a track well to the north of Belize, it’s essential to be cautious if you’re near the coast or out on the cayes. However, Belize has an efficient Doppler radar warning system and a network of shelters to ensure safety for those that do not have sturdy houses.
Rainfall can continue into December, which is also a time when cold fronts, known locally as “northers,” occasionally lower temperatures to 50° F (10°C) for a few days.
Medical Care
In Belize, doctors typically receive their training in foreign countries such as the United States, Mexico, or Cuba. Both public and private healthcare systems are available to locals and expats. Public clinics often operate on a donation basis, while treatment at a public hospital like the Karl Heusner Hospital in Belize City incurs a small fee and long wait times. On the other hand, private doctors and clinics charge much higher fees, but wait times are shorter, and the facilities are generally better. Still, the lack of advanced medical care is one of the huge reasons why some expats leave Belize.
Pharmacists in Belize are knowledgeable and helpful, and they may provide medications that are only available with a prescription in other countries. Herbal remedies are also popular in Belize, so if you are open to alternative medicine, seek advice from a respected practitioner.
Keeping Your Sanity In Belize
People choose Belize as a place to live, year-round or part-time, for a variety of reasons, most associated with the laid back lifestyle, warm subtropical climate and access to the outdoors and the Caribbean. Island life, however, presents its own special set of pleasures and problems. On Ambergris Caye, residents say island fever strikes from time to time. Most residents go into Belize City regularly to conduct business, shop for items not available on the island or to get dental care. Many expats take vacations in the U.S., or long weekends in the Cayo district or elsewhere in the countryside. Many locals and expats flee to neighboring Mexico or Guatemala on weekends or on holidays to enjoy a better and cheaper life if only for few days. Not a few become captured by Mexico and actually move to Chetumal, Quintana Roo which is the big Mexican state that includes Cancun.
If you aren’t busy selling real estate or running a hotel, offer some volunteer opportunities. Some expats help out at the local library, or do church work .
For those who can’t find enough to occupy themselves, substance abuse is always a risk, more so in Belize’s freewheeling atmosphere. “Booze is ubiquitous here, and bar-hanging quite the social custom. And, on Ambergris Caye, as much as in most U.S. cities, you can now add other substances. If you’re vulnerable, unimaginative, not a self-starter, passive-dependent, maybe Peoria would be a better bet,” says one American who lived on the island for many years.
For top-flight medical care, expats catch the comfy ADO bus to Merida, Yucatan, or fly to Miami or Houston, or at least pop over to Belize City. Ground was broken on Ambergris Caye in March 2024 for new 45 bed public hospital offering primary and secondary care, donated by Taiwan.
Most residents say they feel safe here. Burglary and petty thefts are relatively common, and most expats will have a home break-in sooner or later, but violent crime is relatively rare.
Taxes
A tax affecting expatriate residents is the national 12.5% Goods and Services (GST) tax on nearly everything, with exclusions for some food and medical items. Import taxes are a primary source of government revenue. They vary but can range up to 80% of the value of imported goods. Official residents in Belize under the Retired Persons Incentive Act do not have to pay import duties on a car, boat, plane and up to US$15,000. in household goods imported into the country.
For those working for pay, the country has a progressive personal income tax with a top personal rate of 25%. There is no estate or capital gains tax. On real estate purchases, buyers currently must pay a 5% transfer fee, rolled back in mid-2006 from 15% formerly paid by non-citizens. The 12.5% GST applies to purchases of new condos, new homes and lots in a subdivision, but it does not apply to purchases of an existing house or a small piece of land.
Article contributed by Belize Travel Writer Lan Sluder
