If you’re thinking about setting up an offshore company in 2025, Belize used to be a top pick. Today, though, new laws, banking headaches, and global pressure have made it much less attractive. Below we explain in simple terms why Belize is losing its shine—and why a Delaware LLC often makes more sense.
Why Belize Offshore Companies Are Losing Their Appeal
1. Big Tax Breaks Are Gone
Recent reforms have removed most of the tax exemptions that once made Belize so cheap. Now you must file local returns and pay regular corporate taxes, wiping out the main reason people went there in the first place.
2. Bank Accounts Are Almost Impossible to Open
In Belize, local banks reject over 99% of new business account applications, making it nearly impossible to secure an account. They enforce strict anti–money–laundering and “know your customer” rules, demanding extensive ID checks, proof of income, and detailed source‑of‑funds documentation that most small companies can’t provide. Many banks also require high minimum deposits and continuous reporting, turning what should be a simple setup into an audit‑style process. With correspondent banking ties scarce, even meeting these tough requirements often isn’t enough to open a Belizean business account.
3. Banks Keep Failing
Choice Bank was liquidated in 2018 after Belize’s regulators uncovered serious anti–money–laundering breaches and irregular prepaid‑card transactions. Atlantic International Bank was placed into liquidation in 2019 when a U.S. lawsuit froze over $140 million of its assets, leaving it unable to meet liquidity requirements. This ongoing instability puts your funds and operations at serious risk.
4. Privacy and Simplicity Are Lost
New economic substance rules force Belize companies to set up in‑country offices, hold audits, and file detailed reports. What used to be quick and private is now complex and public.
5. Stigma from Blacklists
Belize has appeared on and off the EU’s “non‑cooperative jurisdictions for tax purposes” blacklist—most recently added in October 2023 and briefly removed in February 2024 after limited reforms. It also sits on the OECD Global Forum’s grey list for its uneven transparency in exchanging financial information. This repeated blacklisting pressures banks and partners worldwide to treat Belize companies as high‑risk, leading to service refusals or steep compliance fees. Even when its name is cleared, the lingering stigma makes it difficult for Belize‑registered entities to regain full market trust.
Why Delaware LLCs Are a Smarter Alternative
1. Fast, Easy Setup
You can register a Delaware LLC online in as little as 48 hours with minimal paperwork. All you need is a valid passport copy and a recent utility bill or bank statement as proof of address. Simply complete a short order form on our website, and you could start invoicing and running your business within 48 hours.
2. No U.S. Tax on Foreign Income
Non‑U.S. members pay no Delaware corporate tax on earnings made outside the U.S. The LLC itself passes income through to owners, so you only pay tax where you actually do business.
3. Strong Legal Protections
Delaware’s courts specialize in business law, offering decades of clear, predictable rulings. That legal certainty shields owners and investors from surprises.
4. Globally Trusted Banking
Banks worldwide know and accept Delaware LLCs. You can open an account in nearly any country without the refusals that Belize companies face.
5. Low, Predictable Fees
Annual maintenance is simple and transparent: a fixed franchise tax plus your registered‑agent fee. No hidden audits or extra compliance rules.
Belize has tightened its rules, lost banking partners, and given up key tax benefits—all while carrying a reputation risk. Delaware LLCs, by contrast, combine speed, low cost, legal certainty, and global banking ease. For most entrepreneurs in 2025, a Delaware LLC is the safer, simpler way to go.