Venezuela: Overview

RENTAL YIELDS

Yields can be as high as 15% in Caracas

Because of the acute shortage of quality housing, yields for apartments in Caracas are around 10% to 14%. Houses can fetch higher yields, up to 15.2% for a 350 sq. m. property.

Rental yields for houses in provinces that are popular for tourists and foreigners can reach up to 20%. These provinces are Macaraibo, Maracay, and Barquisemento. The most expensive properties can be found in Margarita Island, along the Caribbean, a 100 sq. m. property would cost around US$350,00 while a same sized house in Caracas would only cost US$95,000.

Read Rental Yields  »

TAXES AND COSTS

Income tax and CGT are high at 34% in Venezuela

Effective Tax Rate on Rental Income
Monthly Income	US$1,500	US$6,000	US$12,000
Tax Rate	22.2%	20.9%	23.2%
Click here to see a worked example
Source: Disclaimer

Rental Income: Net rental income is taxed at a rate of 34%.

Capital Gains: Capital gains earned by non-residents are taxed at a flat rate of 34%.

Inheritance: There is a gift and inheritance tax that vary from 1% to 55%.

Residents: Resident individuals are taxed on a worldwide income basis.

Read Taxes and Costs  »

BUYING GUIDE

Total transaction costs are high in Venezuela

Total roundtrip transaction cost for buying property are around 13% to 16.5%. The biggest expenses are the real estate agent's commission (5%) and the Municipal Solvency Certificate (3.93% - 5.24%), both paid for by the seller. Registration takes about 33 days, with 7 procedures.

Read Buying Guide  »

LANDLORD AND TENANT

Tenancy laws are pro-tenant

Tenant Security: Landlords have in the past relied on one-year contracts due to landlord/tenant's difficult relationship on account of occupancy laws that highly protect the tenant.

ECONOMIC GROWTH

Venezuelan oil based economic boom

Venezuela is blessed with a glorious Caribbean coastline, snowy Andean peaks, untouched jungle and prairies teeming with wildlife. With a population of 26.6 million, it has one of the highest GDP per capita in Latin America at US$5,805.

The legacy of the oil-boom years includes an infrastructure that makes Venezuela an easy country to get around. A network of fast (if increasingly pot-holed) roads, and frequent flights means that within a relatively short stay a visitor can enjoy a wide variety of activities.

Venezuela's culture is largely influenced by its North American neighbor with a passion for baseball and beauty pageants, fast-food and shopping malls. People are friendly and welcome tourists. For foreigners, prices are low (gasoline is till the cheapest in the world), and the lifestyle is relaxed and Latin.

Venezuela has the largest proven reserves of oil in the Western Hemisphere and the sixth in the world (estimated at 77 billion barrels), as well as huge quantities of coal, iron, ore, bauxite, and gold. It is the largest exporter of oil to the United States. When oil prices are high the economy is buoyant. The country also has vast non-oil mineral wealth, which is largely undeveloped.

Few Venezuelans have gained from its mineral wealth, inequality is still very high. About 32% of its population is below the international poverty line of US$2 a day. Inflation is at 16.6% in 2005 and unemployment remains high at 16%.