What Capital Gains Tax?
President Joe Biden made waves this week when he proposed raising the capital gains tax to 43.4 percent for the highest tax bracket, up from the current top rate of 23.8 percent.
Now, we're not into politics around here. We find them to be a distraction, at best, and dangerous, at worst. We're also not into taxes, especially income taxes. Taxing individuals on their production to allow for government consumption is always going to end poorly. Production has a limit, consumption is insatiable.
But this got us thinking about alternative investing, most specifically real property investing in Belize. Besides being one of the most beautiful places in the world, Belize has set itself up as a tax haven for investors. How about this:
- No capital gains tax (yes, none)
- 1.5 percent income tax on rental real estate
- $100 per room real estate taxes per year
With the federal deficit soaring out of control, and the political climate leaning towards increased taxes, it may be time to consider a plan b for your investments and retirement. At the very least, an overnight rental in Belize will not be double-taxed. At best, you could retire in Belize as a permanent resident and enjoy these tremendous tax advantages permanently.
If this sounds interesting to you, reach out to us here at Abundant. We have extensive experience investing in Belize, and we'd be happy to help you assess whether it is the right next move for you.