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.

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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