ISLA MARGARITA

	Palm trees, sundowners at sunset,

The New Emerging Property Market

Thinking of buying a home where you can watch the sunset over a golden sandy beach with crystal clear sapphire coloured sea, whilst cocktails are been shaken at the rhythm of salsa music in the background? Thinking of investing in an area with excellent value for money with rental guarantees that offered year round sunshine as well as a sense of safety where mixtures of people live together in harmony?  

Thinking of retiring on an island with modern infrastructure and all facilities of western society, where you could have a domestic helper from only £3 per day?  

Look no further than Isla Margarita.  

As the cost of long haul flights fall, the Caribbean is no longer the exclusive destination for the super rich. If you buy on Margarita Island you don’t even have to worry about the hurricanes and given the price of petrol you could afford to have a speed boat if not a Hummer.

-------------------------------------------------------------------------------------------

Margarita Island is a significant Caribbean tourist resort and the actual charm lies in the contrast between modern and old. Make the island your starting point for exploring the rest of Venezuela and the Caribbean. Margarita is an ideal destination to invest, go on holiday or retire for the following reasons

1.      Low entry level property prices (two bedroom freehold beach side villas start at just over £30,000)

2.      Excellent short and long term property price appreciation due to both the arrival of international buyers and government incentives to build tourist resorts and facilities

3.      Guaranteed rental returns due to the booming tourist industry together with the lack of rental property supply and hotel accommodation.

4.      Duty free shopping and only a 0.5% property sales tax.

5.      Summer weather all year with pleasant breezes and no rainy season. Average temperatures range between 24°C and 38°C.

6.      Margarita is the only Caribbean island outside the hurricane belt, thus ideal to moor a boat/yacht whilst having the peace of mind your home will not be destroyed by natural catastrophe.

7.      Direct flights from Manchester and Gatwick with First Choice lasting approximately 9 hours. Indirect flight routes from major cities with most airlines into Caracas and from there onto Isla Margarita via one of many daily 35 minute shuttle flights.

8.      Cheap cost of living (e.g. 80 litres of petrol cost approximately GBP1.50)

9.      Very good modern infrastructure compared to many other Caribbean countries with tarmac roads and all major Western brands (Cartier, McDonalds, BMW, Benetton, Hilton Hotel etc…).

10.  When not relaxing on the beautiful beaches with golden sands and crystal clear waters there are a variety of activities to keep you entertained: cruises, sailing, casinos, golf, big game fishing, scuba diving, surfing, windsurfing and kite surfing. Direct flights are also available to the Angel Falls (tallest water falls in the world), the Amazon jungle, other nearby Caribbean Islands, South America and North America.

11.  The population is welcoming and friendly and most islanders will speak basic English in tourist areas.

Taxes

Isla Margarita is a duty free island with no VAT, no Wealth Tax, no local Income Taxes and virtually no property taxes compared to Europe. There is only a 0.5% Property Sales Tax for sales above Bs 100.800.000 (approx $46.883k at 2150 official exchange rate) if the property is not the main residence. Capital Gains Tax and Personal Income Tax for non residents are both 34%

Personal Income Tax for Residents

Corporation Tax

Average Property Purchase Related Expenses and Finance

Deposit required for the purchase of off plan property is 50% of the total price.

The following I what you would expect to pay on average when purchasing on Isla Margarita: Legal Fees $500, Power of attorney $500, Notary $100, Private option contract $100, RIF from Seniat (tax registration number) $62. Other minor charges include municipal charges, community fees, electricity, water, phone, etc. As mortgage finance is not available due to high interest rates, UK equity release can be used for down payments.

Tourism and Economy

1.5 million tourists visited the island in 2005 and an estimated 2 million will arrive in 2006 (data Corpotour). The island has investments from well known western companies such as McDonalds, Cartier, Tiffany, Hilton hotel with associated casino, BMW, Benetton etc. The main economic activities are tourism, duty free shopping and fishing.    

Communication Links  

UK direct flights to Isla Margarita Porlamar airport last 9 and half hours approximately from Gatwick (every other Wednesday) and Manchester (every second Thursday) with First Choice.

Packages can be purchased to stay in any of the following destinations: Pampatar, Playa Puerto Cruz, Playa El Agua, Porlamar, Playa Caribe, Playa Tirano, Playa El Humo. Please see the website http://www.firstchoice.co.uk

One may find bargain flights from http://www.holidaywarehouse.co.uk with Air 2000.

PORLAMAR (PMV) on Thu, 8 June 2006 for 14 nights. Departing: MANCHESTER (MAN) - prices correct as of Thu, 25 May 2006 at 08:12 Price: £249  

Prices vary usually from £400 to £800 but some low cost carriers are already flying to other Caribbean destinations for £99 single so it shouldn’t be long before these prices are charged also for Margarita Island routes  

Alternatively one can book a regular flight (with Air France, Iberia, Alitalia, Conviasa, Air Europa, Condor, KLM, Lufthansa and TAP Portugal) to Caracas from any major city and then connect to Isla Margarita with one of the many daily shuttle flights lasting 35 minutes. Flights are available from North America with American Airlines, Delta Airlines, Aeropostal, Continental Airlines, Air Canada

For flights inside Venezuela visit:

http://www.aeropostal.com/index.htm 

http://www.laser.com.ve 

http://www.avior.com.ve/

http://www.avensa.com.ve/

http://www.conviasa.aero/  

Island Dimensions

Margarita covers a territory of 1071 km². Margarita has an east west span of 66km and 33km from north to south.  

Weather

Margarita is outside the hurricane belt with respect to other Caribbean countries and has warm, dry weather all year with pleasant breezes. The maximum and minimum temperatures are respectively 38°C and 24°C and the warmest period is from May to September. The night time temperature is 4°C cooler while the south and west part of the island are usually warmer. There is no rainy season unlike other Caribbean countries

FACT SHEET  

Infrastructure: Similar to Dominican Republic but with much higher standards  

Time zone: -4 GMT winter, -5 GMT summer  

Population: 375,000  

Capital of Isla Margarita (Nueva Esparta State): Asunción  

Capital of Venezuela: Caracas  

Language: Spanish. Basic English + European languages spoken in tourist areas  

Currency: Bolivar. Official Exchange Rate Bs/$ 2150  

Immunisations: none required unless travelling to Venezuelan rain forest, in which case Malaria, Tetanus, Hep A, Typhoid, Cholera, Yellow Fever  

Visa: not required if visiting for less than 90 days. Business visa are valid for a year and take on average 4 days. Employment visas are discretionary and may take up to 10 weeks.  

Electric Current: 110V / 60 Hz  

Private medical insurance: Advised  

Pets: Subject to quarantine. Require government licence and permit for which proof of inoculation, health care certificate. Also require overseas passport of owner and customs forms.  

Emergency Services: 911  

Interest Rates: deposits approx 12%, loans approx 17-20%, inflation approx 20.6%  

Peak season: Easter, Christmas, Summer  

International Dialling Code: 0058  

Religion: Catholicism  

Average wage: approx $280 per calendar month although 80% of the country work for a minimum wage of $120 per month.  

Dress code: always casual or smart casual  

Airport tax: Approx $54

Geography

Isla Margarita forms part of the Nueva Sparta State which includes the smaller islands of Coche and Cubagua, currently unexploited. The eastern side of the island is fertile and populated whereas the western part is more arid and relatively uninhabited. It is situated along the South American northern coast of Venezuela, in the Caribbean Sea.  

Margarita covers a territory of 1071 km², Coche 55km², Cubagua 22 km². Margarita has an east west span of 67km from Punta Ballena to Punta Arena and a north south distance of 32.4km from Cabo Negro to Punta de Mosquito.

Main towns  

La Asunción is the capital of the island and of the entire state of Nueva Esparta. The main tourist attraction is the church of La Catedral de Nuestra Señora de la Asunción, said to be the oldest in Venezuela.  

Porlamar is the largest city and the commercial hub of the island with numerous shops, bars, restaurants and banks. Of the many shopping malls the most impressive is the Sambil shopping centre where one can shop in designer shops and all duty free. In Porlamar you will also find banks and restaurants offering all types of cuisine, as well as bars, night clubs and a very modern cinema.  

Pampatar situated on the island's most protected deep-water harbour is much more picturesque and calm retaining its colonial-era flavour and architecture. Here you can relax watching the fishermen, bring in their haul and then enjoy the “catch of the day”” in some of the beachfront restaurants, where a meal for two will cost approximately $10.

Juangriego is a fishing village becoming increasingly popular for its amazing sunsets, where the sea food is exquisite and at phenomenal value for money. The town is really worth visiting, just for the “flaming red” sunsets, but if you want a prime table and viewing spot you must go early.

Getting Around

The main companies are, Budget, Hertz and Margarita rentals. The first two are located at the airport, as well as opposite the Hilton Hotel in Porlamar with rates varying from $25 - $75 a day. Alternatively one can hire a taxi and negotiate a good daily rate especially if you pay in US Dollars. Taxi drivers know the island extremely well, and could drive you to places worth visiting known only to the locals

Living Expenses

Electricity

Monthly bills for a 2 bed property are approximately $30 or £16.

Water

Costs depend on the type of property purchased. Water is supplied directly but may also be “tanked” in by lorries to avoid shortages during peak season in certain hours of the day. However, a new water duct is under construction from the mainland to Isla Margarita via Isla Del Coche. Houses almost always come with an underground “tank” with a capacity between 8,000 to 25,000 litres. This amount is adequate for a months’ normal usage. Lorries fill up “tanks” from the street and this is then pumped in to the house but the water is not of drinking quality; so it is common to have water filters installed. Water delivery can be scheduled fortnightly or on a monthly basis. Cost is approximately $8 or £5 a month. Apartments have much larger tanks and costs will be included in the community or maintenance fees.

Health care

The Island has many excellent private clinics therefore private medical insurance is advised. An American firm, Surgical Services International (SSI), together with all the major clinics and doctors on the Island, offer everything from plastic surgery, LASIK eye operations and major surgeries, at a fraction of the cost. http://www.surgicalservicesinternational.com

Petrol

Venezuela, being one of the largest producers of oil, means that gas / petrol is extremely cheap. To fill a tank capacity of 80 litres will cost $2.80 or £1.55. Petrol is so cheap that many can afford to own and run a boat.

Alcohol and Cigarettes

A local beer such as Polar or Brahma will cost in a bar between 0.30 to 0.60 cents or 0.16p to 0.33p. Buying from an off licence is even cheaper. Wine bottles starting at $2 or £1.20 while a bottle of Vodka, Rum or gin can be bought for as little as a $1. A box (20) cigarettes will cost 0.62 cents or 0.34p.  

Groceries

A weekly bill of organic food including alcohol can be as cheap as £20 or $35, with higher quality products than UK but many prefer to “eat out” as it’s so cheap.

Restaurants

Being a Caribbean island, fish is the speciality and meat is also available as well as the local barbeque cuisine which is a combination of any of the above, but served with beans, rice and plantain. Beach front establishments are the best places to eat fish, especially in Playa el Agua, Pampatar and Juangriego. A good rule is to eat fish where you can actually see the sea and eat meat in restaurants that specialise in this only.

A typical full meal for 2 would start from only $10 or £6 in a “middle of the road” type restaurant. Classier restaurants would be more expensive but still at excellent value for money compared to the UK and Europe.

Mobile Phones

In most cases mobile phones will not work on Margarita. One can purchase a local SIM card (for around US$20) or a mobile phone as they are relatively cheap from the SAMBIL shopping centre outside Pampatar. One can then have a local number which requires a pre-paid card for activation.

THINGS TO DO

Excursions offered by First Choice  

View the Macanao Peninsula by air-conditioned jeep, on a land cruiser safari. Sail to Coche Island, with its stunning white beaches and sapphire waters, or explore Los Roques Archipelago and snorkel among fabulous fishes. Visit the world's tallest waterfall, Angel Falls, in mainland Venezuela's Canaima National Park, or roam through La Restinga Nature Reserve Beach, where a 17-mile sand bar joins the island's two ends.

Excursions:

* Orinoco Delta & Angel Falls (2 days/1 night) - Approx. £220

* Coche Island - Approx. £45

The Beaches

Margarita Island boasts many beautiful beaches that cater for all types from the surfer to the tourist who just wants to relax and read or sunbathe.

Playa El Agua is by far the most popular beach with a 4.5 km long stretch of white sand and moderate to rough surf, backed by palm trees and a vast selection of restaurants and shops. The current here is deceptive, so even the most skilful swimmer should take care. Jet skis and ultra lights are available for rent here.

Playa Parguito has begun to rival El Agua in terms of popularity and both beaches can get packed on weekends and during peak season. To the north and south of Playa El Agua one can find beaches such as Manzanillo, El Tirano, Cardón, Zaragoza and Guacuco, less developed but all very nice. On the northern coast of Margarita one can find a string of excellent less-developed beaches, including Playa Caribe, Playa Pedro González, and Playa Puerto Viejo. Those looking for solitude should head for the undeveloped beaches of the Macanao Peninsula. Some beaches offer lounge chairs and beach umbrella for rental from $2 per day.

National Parks

La Restinga National Park is a 10,700-hectare (26,429-acre) park encompassing an area of mangroves, marshland, sandbar, and coral-sand beaches making a natural land bridge between two islands today known as Isla de Margarita. Visits to the park usually involve a boat tour through the mangroves, followed by some time on the beach where one can find restaurants and souvenir stands.

The park's beach is renowned for its supply of seashells while bird-watching is excellent in the mangroves. After paying an entrance fee of $1 one walks to the nearby pier, where scores of boats wait for tourists to commence the tour charging $5-$10 per person, depending on the size of the group. The mangrove trip lasts approximately 45 minutes after which the tourists are left at the beach where it would be a good idea to have a pre-arranged ride back. 

The Island of Coche & Cubagua

The state of Nueva Esparta consists of Isla de Margarita and two smaller neighbouring islands, Isla Coche and Isla Cubagua whose pearl rich sea beds were major sources of wealth during the colonial period. Both islands are popular for day cruises to pristine and nearly deserted beaches. Day tours by small cruise ships and converted fishing boats are common.

Los Roques, Canaima and Angel Falls

The most popular excursions from Margarita are to either Los Roques or Canaima and Angel Falls. Many tour companies provide trips to these destinations usually requiring overnight stays. The airline and tour company that fly there is Aerotuy http://www.tuy.com/Aereotuy.htm

OTHER ACTIVITIES

Biking

One can rent a bike for exploring. Care should be taken with the sun and distances between towns and beaches can quickly become more daunting than expected

Cruises & Sailboat Charters

Margarita is a fantastic place to sail due to the constant trade winds and translucent turquoise waters. Charter vessels anchor in the Pampatar harbour and other anchorages or bays around Margarita where a sailboat is always available for a day cruise or multiple day charter.

Fishing

The waters off Margarita Island offer excellent fishing grounds where one can catch any combination of tuna, dorado, marlin, and sailfish. One can hire a guide and a boat for the day, with lunch and beverages, for between $300 and $1,200 according to the size of the boat.

Golf

Currently there is only one golf course operating on the Island located at the Hesperia’s hotel called Isla Bonita. There is a brand new impressive soon to open golf course called Margarita Golf Country Club, located in the centre near the hotel Hilton in Porlamar. Grupo KAP is sole agent for the sale of properties on the latter golf course!

Casinos

One can try out the casinos at either the Laguna Mar resort, or at the Hotel Hilton. Bingo is extremely popular with many places to play.

Horseback Riding A great way to explore and a few places do offer this.

Jeep Tours

These full day tours involve being picked up and dropped at your hotel. Price includes food and drink and they are usually great fun.  

Scuba Diving & Snorkelling

Being in the Caribbean, Margarita Island offers excellent possibilities for snorkelling and scuba diving.

Ultra light Flights Several pilots and companies offer ultra light flights.

Surfing  

Playa el Agua and Playa Parguito are probably the best beaches for surfing

Windsurfing and Kite surfing

Although one can rent a Windsurfer on many of the beaches on Margarita, Playa El Yaque, on the southern part of the island near the airport, is the Mecca for windsurfers. World champion kite surfers come here, so it must be good.

Shopping The numerous designer shops and boutiques will satisfy even the most professional shopper 

FAQ

Q: How much has my pension to be in order to become eligible for a retirement visa?
A: One would need to receive more than US$ 1200 per month for one person or $1700 per month with a spouse.

Q: Is it easy to get a Venezuelan Residency?
A: Yes, but it has to be done in Caracas which could be quiet tedious.

Q: Does Venezuela allow double taxation?

A: Not for the following countries: Barbados, Belgium, Bolivia, Canada, Chile, Czech Republic, Colombia, Denmark, England, Ecuador, France, Germany, Great Britain, Italy, Mexico, Netherlands, Peru, Poland, Portugal, Sweden, Ukraine, USA

Q: Are foreign driver licences valid in Venezuela?
A: Only until one holds a residency visa after which Venezuelan Driver licence is required. In any case one needs a valid medical certificate in order to drive legally.

Q:  Is finance available on the island?

A: No because banks do not have access to credit history of foreign clients and even if that were possible interest rates are extortionate compared to the western world due to high inflation.

Q: What does one need to purchase property on the island?

A: Passport and an RIF tax identification form which can be obtained with power of attorney.

Q: Are there any restrictions to purchasing in Margarita?

A: All one needs is the tourist visa (the green form given on the plane)

Q: Is Margarita dangerous?

A:  Margarita has the lowest crime rate in the country. One must take normal safety precautions as anywhere else in the world. There is absolutely no comparison between Caracas and Margarita.

Q: Which areas are best for night life?

A: Playa del Agua and Porlamar

Q: Can one have a bank account in Euros, US Dollars or Pounds Sterling with a Venezuelan bank?

A: No with Venezuelan banks one can only have accounts in the local currency Bolivares.

Q: How does one sign a power of attorney from abroad?

A: The power of attorney must be signed in front of a notary public in your country and then sent to the Venezuelan embassy or consulate for authentication

Q: When are national holidays?

A: See table below

VENEZUELAN AND MARGARITA ISLAND HOLIDAYS

Christina Harris - Tel: +44 (0) 1962 885602

For property in Florida (especally Orlando, Kissimmee, Davenport and Clermont) Greece, Alonissos, The Peloponnese, Skiathos, Skopelos, Zakinthos and Crete contact: John Goodwin - Tel: + 44 (0) 1590 626266