How to buy a property in Margarita

There are no restrictions to buying a property in Margarita Island and the procedure is straight forward. All you need, to buy a property in Margarita, is your passport and fiscal identification number (RIF number - easily obtainable with the help of a local solicitor). The foreigners and non residents have the same legal rights/protection as local citizens when purchasing a property in Margarita.

The Land Registry system is based on a mixture of Spanish and French principles and is well established. The purchase costs associated with real estate in Margarita Island are low. They total around 3% of the purchase price - a nominal 0.5% property sales tax (paid by the seller) plus around 1 to 1? in other legal costs and 1% land registry (paid by the buyer).

Whether you are buying new or resale it is a two stage process with an initial reservation (for new) or option to purchase (for resale) made prior to moving to a purchase contract. If buying new 'off plan' the preliminary procedure up to Purchase contract will normally be done in about a month. However, the final deed will not be signed until the property is completed and stage payments have been made.

The completed purchase may be witnessed and registered by a Notary in Margarita. UK based specialist lawyers are available to undertake all the normal due diligence and conveyancing procedures. Power of Attorney may be granted for a lawyer, or other person in Margarita, to sign the deeds on your behalf.

Properties must be bought in the local currency (Bolivars). Some developers may not introduce all the monies in the country, and would be unable to provide a certificate of foreign investment to buyers. This document is essential to ensure the full repatriation of the investment if one decides to sell and to avoid hefty fines for tax evasion and currency crimes. As a non resident, you are liable for Capital gains tax if you are taking the money out of the country. However it has been a custom for foreigners to simply pay the 0.5% sales tax and this custom is unlikely to change.

Mortgages and finance to buy a property in Margarita Island are not available for foreigners and the interest rates are very high. The best option is to raise a loan in your own country, sometimes the developers of off-plan properties offer the finance arrangements.

We always advise our clients to use the currency exchange companies to assist them with the payments in foreign currencies in order to avoid the currency exchange rate fluctuations. We can recommend MoneyCorp Company for these purposes, please click on the banner to access more information:

For more detailed information on how to buy a property in Margarita Island, please refer to the Frequently Asked Questions (FAQ) Section

If you are looking for information on how to buy (villa, apartment, condo, and penthouse) a property in Margarita look no further, we have comprehensive information on Margarita Real Estate