Advice on Buying Property in Margarita Island

You will arrive on the Isla de Margarita either by charter flight from Europe or on a regular service via the Venezuelan capitol Caracas. Either way you will arrive upon a peaceful, tranquil island with prices considerably lower than on any of the more well known other Caribbean islands.
 
Having found your ideal property there are a few factors that any prospective purchaser should bear in mind. As a foreigner, you will not be able to get financial help in the form of a mortgage to assist you with your purchase and in the few possibilities where it is possible (on certain developments in construction) the interest rates are so high that it makes it unaffordable. If financial help is required make all these arrangements in your home country before setting off.
All transactions are made in the local currency Venezuelan Bolivars (VEB) some sellers will ask to be paid in foreign currency, but there are new regulations effective from June 2007 which makes this virtually impossible as the property purchase has to be shown as being paid for by a cheque drawn up in the local currency, proof of this has to be shown when drawing up the new title documents. (Your agent will assist you with this).
Any foreigner with a valid passport can purchase property on the Isla de Margarita. To start the process you need to apply for a RIF number which is obtained from Seniat (Government office) which must be done in person. One thing to remember is to go properly dressed; men to wear long trousers and women a dress. Although a relaxed Caribbean Island there is a formality that must be adhered to when going into Government offices. Failure to dress accordingly could result in you not being admitted.
 
The cost’s involved with property purchase must always be paid upfront and always in cash usually 3 of the final property purchase price. The seller is obliged to present a title deed that is free from debt or charges to your agent.  Most Estate Agents have a legal department where documentation is checked, and the new title deeds drawn up and they can assist with drawing up a “Power of Attorney” should it be required.
Once all this is done, and both parties have agreed by signing, you will be granted a new freehold title deed in your name.
Your agent might also suggest that you open an account with him, for him to pay your utility bills and property taxes when they become due, and to collect any rent due should you decide to rent the property out when you are not there. You will be asked to leave photocopies of your passport and title document for him to change all the services into your name. He will usually charge for this, but at least you will know that they are paid.


These guidelines are meant for guidance only and describe a straightforward purchase scenario. However this information is not meant to replace proper legal advice, which we always insist you take.