FAQs

All You Need To Know About Palm Reef Resort

ABOUT THE DEVELOPERS

Who is responsible for the development of Palm Reef Resort?

Palm Reef Resort is being developed by Palmetto Holdings Limited – a registered Belize company, duly incorporated under the laws of Belize.

What is the management structure of Palm Reef Resort?

Palm Reef Resort will be developed by Palmetto Holdings Limited. Well before each phase reaches completion, a strata corporation will be set up to ensure fair representation for each and every owner. The management of the rental program will be managed by a professional management company on behalf of the residence owners.

OWNERSHIP STRUCTURE

Are there any restrictions placed on owners selling their units before the development is complete?

For individual investors, there are no restrictions placed on selling your residence before completion of the development, however, for bulk purchasers, institutional funds and investors, a restriction will be in place.

Who will manage the resort and rental program?

A separate professional management company will be appointed.

Are there any restrictions on using my residence at Palm Reef Resort?

No restrictions.

What is the Palm Reef Resort legal structure?

A fully registered Strata Corporation will serve as the legal structure for holding ownership as per the Strata Titles Registration Act of Belize, Cap 196 of the Laws of Belize, R.E. 2000.

Purchasing and legal transfer

How do I purchase a residence at Palm Reef Resort?

Purchasers would need to sign an Agreement of Purchase and Sale, followed by payment of the applicable deposit into Palmetto Holdings Escrow Account and provide normal due diligence documents as required under Belizean Law.

What are the payment terms?

Based on buyer preferences and extensive research of the most successful developments in the region that where the least affected by the 2008 economic crash, as well as our consultation with industry experts, has allowed us to create a package that is the safest for our investors, the development and offers the most flexibility for purchasers. Units at Palm Reef Resort can be secured by paying an initial deposit or down payment that reflects the level of construction of the unit.

Additional four (4) stage payments are made at various construction milestones, according to the building’s level of completion and include owners’ units level of completion.

Upon completion, you will have paid 75% of the total purchase price. The final 25% payment will be due upon completion and transfer of property to the Buyer.

This method of payment and development is standard throughout the Caribbean and is the “standard” for safety in real estate development throughout Belize.

How does the escrow account work?

Funds are released after each stage of construction is reached and signed off by the Site Architect.

When will transfer of properties take place?

The transfer of property will take place when the last payment is received.

Is there stamp/transfer duty payable on the sale?

A 5% transfer tax is levied, as is standard for Belize.

What are the estimated legal and closing costs?

2% of the unit cost.

Are there any restrictions to repatriation of capital from Belize?

None.

Will the sale of my Palm Reef Resort residence attract capital gains tax?

No, not in Belize, however, based on an owner’s country of residency, you may have a liability to declare any capital gains. Always consult a tax accountant in your country of residence for advice.

Is there an inheritance tax in Belize?

None.

What are the annual property taxes and how are they assesed?

Property taxes for the strata are included in the monthly home owners association (HOA) fee. Property taxes are very low in Belize and taxes for each individual residence are estimated at approximately us$ 100 per year.

Can a foreign company purchase real estate property at Palm Reef Resort?

Yes.

Can ownership be held in a foreign trust?

Yes.

Can a trust be registered in Belize?

Yes.

What legal title in the units is passed on to purchasers?

Land certificate (strata title).

Can an IBC (offshore company) own property in Belize?

Yes of course, but not a Belizean IBC. As with any IBC, it cannot conduct business within its domicile.

Is there any difference on the transfer of property in Belize for a resident or non-resident?

None.

Is there mortgage finance available to purchasers in Belize?

Yes, through many local and international banks, however, they will usually require a minimum of 40% deposit.

Have any arrangements been made with banks to provide such finance?

Belize Bank, Atlantic Bank, CIBC First Caribbean and Scotia Bank can provide financing. Rates are normally 8 -10%.

Can purchasers re-mortgage to buy a residence in Belize?

Yes.

RENTAL POOL

How does the rental program work?

The rental program is the official rental channel for residence owners at Palm Reef Resort. Residences are entered into the rental program where they are marketed and sold as hotel inventory through the management company’s distribution platforms and channels. Net receivable income, after deduction of standard industry accepted costs, is split on a 75/25 basis: 75% for the owners and 25% for the management company.

How do I make a reservation?

An owners’ reservation number will be provided to all owners. This reservation hotline and dedicated email, links directly to our front office / reservations department to ensure VIP treatment for all of our owners.

What notice period is required when reserving my residence?

Notice of at least 90 days will need to be given during peak season (October to May). 30 days will usually be sufficient for all other times. Owners may reserve their unit on a last minute basis if there is not an existing reservation. Management will do their best to move paying guests to ensure we can accommodate our owners.

How does the housekeeping charge work?

US $10.00 per day and $5.00 per day for laundry. Fees are charged daily when rented and by request when owners are in residence.

How is the rental revenue split?

75% to owners and 25% to management.

Can an owner rent out their residence on their own?

No, all rentals must be handled by the management company.

How often will I receive rental proceeds?

Monthly statements are sent electronically within 14 business days after the last day of each month.

Can the rental program income be used to pay strata fees?

Yes, credit balances can be assigned by owner to cover HOA/strata fees.

Can I use my rental proceeds to assist in paying for my residence?

Yes, the rental pool proceeds paid out to individual owners may be used at the owners’ discretion.

What are my tax liabilities from receiving rental proceeds in Belize?

None – all taxes are paid prior to receiving any rental fees.

VISITING & RESIDENCY

How do I get to Belize?

American Airlines, Delta Airlines, United Airlines and Southwest Airlines fly direct from various cities in North America. Taca Airlines flies from San Salvador and Guatemala with connections from Los Angeles and San Francisco.

What are the requirements for obtaining visitor’s visas for the Belize?

North Americans do not require a visa, however, some countries do require a visa.

How long can I extend my visa for?

Usually on a monthly basis – to a maximum of six months.

How do I qualify for the Qualified Retired Persons program (QRP)?

To qualify for the Qualified Retired Persons (QRP), one must be at minimum 45 years old and provide proof of income of at least US$2,000/month.

What are the benefits of the Qualified Retired Persons program (QRP)?

The Qualified Retired Persons program (QRP) provides tax free import of household goods, cars, boat and aircraft. The QRP allows one to work from Belize, providing the business is done with non-Belize residents. It will also give qualified persons residency in Belize.

What taxes/duties will be levied on cars/boats brought into Belize under the Qualified Retired Persons program (QRP)?

None.

Are there any tax liabilities imposed by Belize on my overseas income or pension while living at Palm Reef Resort?

None.

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