VENEZUELA | Essential Guide | Buying Property in Venezuela

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Buying Property in Venezuela | Essential Guide | Venezuela

Questions and Answers - Property in Margarita Island

How popular is Margarita as a holiday destination?

Margarita is very popular for its all year round perfect weather, beautiful beaches and very friendly people, the playa el Yaque beach is one of the worlds most popular places for wind surfing, Margarita Island is popular for its tax and duty free (zona libre) there is no VAT on the Island, (unleaded gasoline costs ONLY $1.50 for a FULL tank)

Where do the tourists come from?

From all over the world, the main countries are U.S.A. Germany, Netherlands, Spain, Switzerland, Canada, Denmark, Finland, Iceland, Norway, Sweden, United Kingdom, and South America & Venezuela.

Is the island affected by hurricanes or tropical storms?

Margarita is located under the hurricane belt, outside of the normal path for tropical storms, or for that matter any other natural disasters, this permits the Island to be far away from these sorts of dangers.

What is the average temperature of the island?

The temperatures on the Island range from 26ºC (78ºF) in January, and to 31ºC (88ºF) in September. Night time temperatures are about 4 to 5 degrees cooler.
The temperature is never too hot or cold, and the gentle breeze, which constantly blows across the Island, makes you only mildly aware of the heat of the sun.

What is the ocean like?

Margarita has the Caribbean Sea to one side and the Atlantic Ocean to the other side. In some areas the ocean is calm, and others, the waves are suitable for surfing. At “Playa El Yaque” you will find one of the top wind surfing locations in the world. The complex Viento y Agua is located close to both coastlines.

How big is the island?

The island is 1,150 km2.

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What is there to do on the island?

Margarita Island has about 370.000 inhabitants, modern shopping centres and malls on international levels, nightclubs, entertainment centres, lots of restaurants, historical sites. There are many activities like scuba diving, snorkelling, horseback riding, fishing, boating, golf and much more.

How easy is it to get flights to Margarita Island?

There are direct flights to Margarita from the UK (Manchester and Gatwick). Also Canada, Germany, Denmark, United Kingdom, Finland, Netherlands, Russia, Argentina, the majority of international airlines fly through Caracas in Venezuela, from there its only a 35 minute shuttle flight. There are many flights throughout the day to the island from Caracas.

Is it easy to get around Margarita Island?

It is very easy to get around the island, there are several car rental companies, there are taxies available at all times at a very low cost, 30 minute drive is about $10.00, a taxi ride within main the city is approx $2.00

Why consider investing in Margarita Island?

Margarita Island is growing rapidly; many European companies are entering into the real estate market taking advantage of the huge demand for rental accommodation. The deficit for rentals is estimated to be at more than 15,000 units, the island is tax and duty free (zona Libre) which attracts many tourists whom visit the island to shop. The cost of living on the island is the cheapest of all the Caribbean Islands, and owning property on the Island is easier then any other Caribbean island, and real estate prices are constantly on the rise.

What will my investment in Venezuela give me?

• Your profit is free of any liability to local capital gains tax.
• Holding on to your property for the longer term means you can benefit from investing in one of the fastest growing property markets in the Caribbean.
• In addition to this, you will also have a great holiday home while your property is appreciating value.

What is the political status of the island?

The island belongs to the state of Nueva Esparta formed by a group of islands. The government is democratically elected and statistics can be found in almost all web pages of the central government (www.gob.ve)

Is the Island governed by a stable government?

Yes

Are properties Freehold?

All properties are FREE HOLD, for the protection of the buyer, the registry office on the Island has very strict guidelines for selling property, the property must be registered to the seller, if joint ownership, the seller need to provide notarised consent from all joint owners (notarised with finger prints), the registry office recognises the last registered owner as the final owner regardless to whom owned the property in the past.

Can I live on Margarita Island and do I need to apply for residence?

Anyone could own property on Margarita Island, regardless to their nationality, there is no need for residency, to live on the island the process is very easy, first five years on a temporarily residents visa (given without any problem) needs to be renewed yearly, after five years the status changes to permanent resident.

Are there modern facilities on the Island?

The facilities are similar in every big city in the world, at least a dozen big shopping centres, supermarkets and shopping malls, the biggest being Sambil Mall, modern even for European standards with all the well known stores like Bulgari, Versace, Tommy Hilfiger, etc. Several boulevards with a great number of shops of all kinds, all duty free (the island is Freeport) with the lowest prices in the Caribbean, A great number of restaurants and bars, mainly specialised in seafood, but also international like Japanese, Chinese and Argentinean food. There are many hotels on the island including five stars with casinos. There are 5 hospitals on the Island, there are marinas for all kinds of yachts, an International airport with an area for private planes, and there are a few historical museums, cultural centres, and cinemas. Cruise ship passengers port, Amusement and theme parks, Soon there will be a monorail connecting all important places.

What is the tourism industry like on the island?

The tourism industry on the island is extremely strong and growing each year. Margarita Island is naturally endowed with spectacular landscapes and boasts intriguing vestiges of past colonial times, all of which makes of the island an ideal place for tourism in the Caribbean. Add to this the excellent hotels, the first class restaurants for every taste, luxurious casinos, travel agencies, comfortable tourist transportation facilities, duty-free shopping centres, attractive night-life and other recreational establishments -summing up, the island has all the facilities that are required for the development of a nationwide tourist industry.

How long is the rental season?

The rental season is all year round. High season is considered approximately 150 days of the year.

What are the rental rates per night?

The rates start at approximately $60 to $100 per night. Rooms at the Hilton hotel start at $120 per night

What about occupancy rates?

There is a minimum of 130 days a year of full occupancy on the island.

Do owners have personal use of the property?

Yes, if the owner opts for the guaranteed rental income of 6% there is 1 month free personal use available during the year.

Is there any property tax on the island?

The property tax on the island is approximately €150 to €170 per year.

How much is property insurance?

Property insurance is approximately €175 per year for a one bedroom apartment.

What is the purchase tax?

There is no purchase tax on the island

How have house prices moved in the recent past and what is the future potential?

Prices have been going up at a 10% rate per year and this is set to continue at an even higher rate in the next few years.

Do I have to pay capital gains tax when I sell my property?

No, there is no local capital gains tax.