Isla Margarita is an off-shore haven for real estate investment
With 320 days of sunshine, duty-free shopping the Isle is likely to become a major tourist destination. Being an emerging market and bearing in mind the current low prices, Isla Margarita has been a tax, VAT and duty free zone since the Sixties.
The purchaser of a property doesn’t pay any tax on the purchase, only a nominal 0.5 per cent sales tax, one per cent in solicitor’s fees, 0.75 - 1 per cent for land registry and $100 for the notary; they have no corporate income tax, no personal income tax, no estate or inheritance tax and no annual real estate tax. This carries enormous appeal for foreign investors. Official Government figures state that the Island has enjoyed 20% capital appreciation per annum over the past five years, with no sign of stopping.
Isla Margarita is certainly one to watch," "especially with the news that a $350 million Formula One circuit with race academy will be built shortly. The opportunities for renting property are good, particularly in the 20-week peak season covering Christmas, Easter, Carnival time and summer, as well as from October to March, when Europeans and Canadians look to escape cold winters. The rental potential is six to ten per cent per annum with a great standard of living and fantastic beaches; this island paradise has a lot to offer, when the formula one track goes ahead watch the property prices rocket
www.signatureoverseasproperties.com
Recently an American expat wrote that one can live or retire on a beautiful Caribbean island very comfortably for $800 per month. That includes a maid, enjoying a great night life, eating and drinking well without counting every penny. Cigarettes and alcohol are cheaper than bottled water, and for $2 you can fill the tank of your car…….amazing!!Spending your days on a tropical white sand beach, surfing, swimming, snorkelling, sundowners on the beach and someone to come in and do the washing up in the morning. Sounds too good to be true? Read on.
Where is it? Isla Margarita!
Known as the "Pearl of the Caribbean", is situated 38 km north east of the mainland of Venezuela and far from the track of Atlantic tropical storms. Its location as an island in the Caribbean Sea offers lots of beaches to explore, most of them virgin. I can’t understand why this beautiful island is never listed with all the other Caribbean islands; it seems to be all by itself, oh well!!
Margarita Island is divided into two sections tenuously linked by 24 km. sand spit which separates the sea from the fascinating Restinga Lagoon National Park. At its largest, Margarita Island measures 67 km from east to west (Punta Ballena to Punta Arenas) and 32.4 Kms. from north to south - 167 km. of shoreline liberally endowed with inviting beaches.
The mean temperature is 27 degrees Celsius and the annual rainfall averages 27 inches resulting in mostly arid landscapes with some wooded areas and fertile valleys.
Margarita is a Tax Free Zone, no stamp duty, no VAT and nearly a no-tax island.
People are talking about Island Margarita. That you can live and work here or just own a holiday home as a non-national expat and not be exploited by the government, as happens on other Caribbean countries. The Venezuelan Government welcomes investors and people who want to retire here, live here and start a business with open arms.
This island has a cosmopolitan feeling and amongst the Spanish speaking Venezuelan population, there are communities of Brits, Spanish, Canadians, Danish, Dutch, Americans and Irish. Spanish is widely spoken here and is advisable to have some knowledge of the language especially in the cities. Spanish lessons are available at reasonable rates.
Can I get there EASILY?
Yes there are direct flights from both sides of the Atlantic! From Europe, Venezuela is served by many major European airlines; Air France, First Choice, Alitalia, British, Iberia, KLM, as well as other charter flights from Belgium, Germany and Spain.
Venezuela is only a three hour direct flight from Miami, five from New York, and US routes are served by American Airlines, United, Continental, and Delta, and the Venezuelan airlines Servivensa (direct flights from New York and Miami), and Aeropostal (direct flights from Orlando).
During the cold North American winter there are charter flights from Montreal and Toronto offering great deals to Margarita.
A further option is to fly to the mainland, where a range of international airlines fly into Caracas, the capital of Venezuela. Margarita is a 35 minute onward flight
What About Security in Margarita I hear you say?
Well it’s no different then any other country in the world. If you walk down the no-go part of your city at 2am in the morning by yourself, chances are something not so good will probably happen to you, unless you really know how to take care of yourself. It’s the same in Margarita, but the bad guys tend not to go to the tourist area, so its just common sense.
Because it’s a small island and hard to escape from, there is little serious crime. Petty crime is a problem on many Caribbean islands, and common sense and a little street savvy will keep your personal belongings safe. As a foreigner moving around in the city or tourist areas, you will be stopped in your car by the police and asked for your papers. So remember to carry your passport when travelling.
Talking of safety there are no drink/driving laws on the island so watch out while walking on a Friday night, because the side walk (Pavement) and the road are considered one and the same!
Is there an Infrastructure?
Over 300,000 people live on Margarita Island most of whom live in the eastern part where the capital of Asuncion and the shoppers paradise of Porlamar are located.
The facilities are similar to 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 brands, Bulgari, Versace, Tommy Hilfiger, etc. I know there are more big names but I cannot think of any at the moment. OK, you are now going to say, how could you not know? It’s quite simple. I don’t DO shopping… I hate it with a passion. If I offered to go shopping with her, my wife would faint! And we would have to make a trip to Ralph Lauren to help her recover! I can’t win!
There are a great number of restaurants and bars. Many specialise in seafood, but there are many other cuisines including Japanese, Chinese and Argentinean. There are many, many hotels on the island including a Five Star Hilton with a casino. More information can be found here, http://www.porlamar.com/
The International airport offers facilities for private planes, and there are a few historical museums, cultural centres, and cinemas.
Isla Margarita Golf Club has an 18 hole course, and is playable 365 days a year due to the exceptional climate conditions in the beautiful region of the Valley of Pedro Gonzales. And every hole on the course has a stunning view of the sea.
Being a tax free zone, people from the mainland and other islands flock to Margarita at the weekend for their duty free!
I have saved the best for last. The beaches on Margarita are numerous and there is something for every time of beach goer.
• Playa El Agua -Longest and most popular, Playa Parguito -Surfing beach; young people
• Playa Guacuco -Narrow, pretty; calm, Playa El Yaque -Windsurfing and kite surfing
• Playa Craibe -Night parties and caves, Juangriego beach -Calm, pretty sunsets
• Playa Galera -Calm, pretty sunsets La Guardia -Rocks and shells Playa Manzanillo -Fishing boats, pretty sunsets Playa Puerto Viejo -Most visitors are hotel Hesperia’s guests
• Playa Puerto Cruz- Long and pretty. Near Dunes and Hesperia hotels.
• Playa Zaragoza- Small, calm, idyllic bay with fishing boats. Great for swimming. I don’t think I have missed any
What about Healthcare?
There is excellent private healthcare in Margarita. There is also plenty of private home help for those needing extra care.
So is it Possible for Non-Residents to own a home in Margarita?
Yes indeed! All you need is a valid Passport and an RIF tax identification form which can be obtained from an attorney. There are no legal restrictions for a non-resident to own property on the island.
There are several good reasons to consider property ownership in Margarita:
• Easily affordable properties starting at just £45,000 GBP (less than $89,000 US) for a fully furnished studio apartment
• Properties are currently up to 70% cheaper than any other Caribbean islands
• Margarita is the only island in the Caribbean which is outside the hurricane belt
• You could expect more than 30% Capital Appreciation in the first 12 months based on past performance
• Guaranteed rental returns due to the booming tourist industry together with the lack of rental property supply and hotel accommodation.
• Up to 10% rental guarantee programme for a maximum 10 years available for new builds
• 2,300,000 million tourists in 2006
• 12 months of sunshine and summer weather with average temperatures of 28C
• 315 km of beaches including 93 km of clean and safe bathing beaches
• Venezuela the second fastest growing economy in the world after China with a 162% stock market increase in 2005
• Margarita offers a very low cost of living with cheap petrol, cheap food, no taxes, no VAT and virtually no property tax
• Modern infrastructure, shopping centres, casinos, golf and a vibrant nightlife
Since then there has been a great deal of attention on vacationing and buying property in Isla Margarita, manifesting itself in a number of ways. For example, there is a huge shortage of two bed room apartments, for renting on Isla Margarita.
www.signatureoverseasproperties.com
