Frequently Asked Questions

Developer

Who is developing 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 owners.

Ownership

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

Owners may sell their condo before completion of the development, however, the contract must be completely closed and there are a few marketing restrictions. For bulk purchasers, institutional funds and investors, a restriction will be in place.

Who will manage the resort and rental program?

A professional hospitality company will be appointed.

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

There are no restrictions if the owner is not participating in the rental program. Otherwise, owners must provide 90 days’ advance notice for peak season from October through May and 30 days’ notice for all other times.

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 a Purchase and Sale Agreement, 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?

Condos at Palm Reef Resort can be secured by paying an initial deposit that reflects the current level of construction.

Additional stage payments are made at various construction milestones depending on the building’s level of completion.

The first deposit of 20% will be due with the agreement signing.

The Second deposit of 25% will be due when ground floor concrete slab is certified complete.

The Third deposit of 25% will be due when the ceiling concrete slab and walls are certified complete.

The final 25% is due upon substantial completion of the condo. This includes flooring, exterior windows and doors.

The remaining 5% will be due upon completion of the condo and at Title Application.

What is the Fly & Buy program?

Fly & Buy allows you as a potential owner to come experience Belize and meet with us face to face before completing a purchase.

How does the Fly & Buy program work?

  1. Book a trip to visit Placencia, Belize
  2. We will recommend places to stay and assist in making the process easy and flexible.
  3. You will be personally collected by a Palm Reef Resort representative at the airport and returned at the end of your stay.
  4. We will collect you, at your convenience, to visit our sales center for your discovery tour and afterwards you will enjoy a local Caribbean lunch or dinner, on us, as we discuss Palm Reef Resort.
  5. Clients that purchase will have the cost of flights for 2 deducted from the purchase price of the unit.

Do the condos come furnished?

The residences are all furnished to provide consistent quality and is included in the price.

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 a stamp/transfer duty payable on the sale?

An 8% transfer tax is levied, as is standard for Belize.

What are the estimated legal and closing costs?

It may vary but typically Belizean attorney fees are 1-2% of the purchase cost.

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.

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

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

Can a foreigner own property in Belize?

A foreigner can own property outright in Belize and has the same rights as a Belizean citizen to freehold property ownership.

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.

Rental Program

How does the rental program work?

Condos 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 isn’t an existing reservation. Management will do their best to move paying guests and accommodate our owners.

How do the housekeeping charges work?

Fees are charged daily when rented and by request when owners are in residence. Owners will have preferred rates on all services.

How is the rental revenue split?

75% to owners and 25% to management

Can an owner rent out their condo 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 the owner to cover HOA/strata fees.

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

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

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

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

Visiting and Residency

How do I get to Belize?

All international flights land in Belize International Airport.  American, Delta, United and Southwest, Air Canada and WestJet Airlines fly direct from various cities in North America. Avianca, TAG and Copa Airline fly from cities outside of North America.

What are the visa requirements for Belize?

North Americans do not require a visa as a tourist for a period of up to 30 days. For stays longer than 30 days an Extension of Stay application must be submitted while in Belize at the Immigration Offices. The consulate recommends applying at least 2 to 3 days before the 30-day period expires. The extension has a fee of $100 BZ.

How long can I extend my visa for?

It can be extended on a monthly basis for up to 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.

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