Free Guide: How to Buy an Investment Property in Venezuela
Necessary Legal Stuff in Advance
In order to be able to buy a property as a foreigner in Venezuela, you need a so-called Investment Visa in your passport and this can be applied for in the Embassy of your country. Contact them and ask what information of yours they need. A fee will apply (in Holland it is €154,-). And be prepared that it might take 2-3 months for the Visa to be ready. They will ask for proof of income and proof of assets etc. Even collecting the Visa itself will take some hours to add the Visa to your passport. The visa is valid for three months only and allows multiple entrances in that period. My visa ended up being valid for only 2 months so be aware of that. Nothing is for sure here. ;-)
Business Visa temporarily on hold?
From the start of 2023, we have been informed that the Business Visa provided by the embassies in Europe and North America is currently suspended. We understand that this is a temporary situation, and although obtaining a business visa may not be feasible at the moment, fret not! We have alternative avenues for you to obtain the official registration of your newly purchased property. Get in touch with us so we can explore the diverse options available to you.
Currencies
By law, all transactions and contracts need to be executed in Venezuelan Bolivares. But as this currency is devaluating rapidly prices are stated in dollars even with a Bs. sign for it. So Bs 15.000 often means 15.000 US Dollars. During your stay in Venezuela, you will need Bolivares in cash. International credit cards do work, but not everywhere and systems are down more than often, and then you need either to pay in Bolivares or in Dollars. Dollars are not accepted everywhere, so you need Bolivares at a certain point. A local guide that receives your dollars on his account, can resell these dollars on the currency market and buy a daily need of Bolivares for you. Not too much as the value decreases rapidly.
Cash in Dollars
Cash is king and is very helpful as a down payment while closing a deal. During your inbound flight, you will need to fill out a form asking if you have more than $10.000 in cash with you. So make sure you don’t take more than $10.000 or investigate what conditions apply.
Transferring money
After the deal has been closed and you may be paid a deposit in cash, the large sum of money needs to be transferred to in most cases a dollar account. When you have a US dollar account, it will be transferred quickly. If you transfer money from a European account to the USA, it might take 4 days and a large commission applies. I used the Application Wise. There is hardly any commission and a good rate and usually, the transfer takes 24-36 hours.
Security in Venezuela
Most Venezuelan people are poor and there is a lot, a lot, of criminality. It’s a bit exaggerated but the expression says that they’ll kill you for 20 dollars, so make sure you have a trustworthy driver and ditto local guides. Stay below the radar. No expensive watches or clothes. Always stay with your guide. After a while, you get easy with the dos and don'ts. Up till then, follow their instructions.
Real Estate Agents in Venezuela
Like in all countries, there are a lot of real estate agents available and they sometimes share properties with each other and sometimes they have them exclusively. You can search on internet sites but we found out that properties offered there are usually too good to be true and only to let you call them and they will offer you their whole range which usually does not look as good as the internet offer. Before you know it you will have a whole nest of agents showing you properties you are definitely not interested in. Viewing apartments cost a lot of energy and before you know it you are as tired as a lump and you can no longer see the forest for the trees.
Always remember:
Your available time and your personal energy are your worst enemies in this process,
so beware to choose right and dare to say no,
and know what you want, and stay focused on that.
Otherwise, you will find yourself exhausted and puzzled and losing it.
Lawyer
Your Venezuelan lawyer is maybe the most important person in the whole deal. You will establish a long-term relationship with him and most likely that you will trust him, or your real estate agent, with the keys and entrance to the new property. In any future case, he will be the person to act for you when you have any wishes... So make sure you only work with a trustworthy party. We can advise you.
The buying process and costs
The moment you close a deal with the owner of the property you will proceed with the following steps:
A Personal Contract between you and the owner will be drawn, stating all necessary details like the buying price, the deposit and of course the description of the property. After signing at a lawyer's office and the payment of the deposit (maybe in cash):
The next step is the payment of the rest of the amount directly to the bank account of the owner. Our lawyer will verify if this is a trustworthy transaction. This is a good moment to also transfer a deposit to your lawyer in order to enable him to make all necessary payments for the last step. Once these payments have been confirmed received, the next phase is:
To have yourself registered as the new owner in the so-called Venezuelan registry. This process can only be completed after payment of the fees, which your lawyer will take care of.
Let us help you
Our team consists of me Aernoud Florijn, and a team of Venezuelan locals, you can make use of a driver, local guide, real estate advisor, handyman, interior decorator and my business companion Pedro as our lawyer. Aernoud bought his first apartment in June 2019 in Valencia Trigalenga. As a team, we have been through all the stages of buying and are happy to pass over this information to you.
What we offer
We are now offering this service to you, and if you need accommodation we are happy to offer that in one of Aernoud's properties in Valencia.
Our service covers among others:
Secured airport pick-up in Caracas or Valencia from arrival hall till airport return
Accommodation
Investigation on forehand what your wishes are
Berry picking the best possible properties or land according to your query
Guidance on a daily basis including sightseeing
All services needed to enable a comfortable stay
Arranging cash in Bolivars for payment of daily needs
Monitoring security and well-being during your stay.
Conditions
As the whole process of buying will take around 4-5 days, you will need a minimum of these days plus the days for searching for the right property. We suggest a minimum stay of 8-10 days in order to achieve the best results. We know the drill and realize that your wishes might change during your stay. Consider some extra days to explore the beautiful sights of the country with or without us.
Tell us what you want and we are happy to provide you with a tailor-made offer without obligation. No pressure from real estate agents and feel free to change your mind as many times as you want. We are there for you.
Send me a mail at aernoud @ florijn.com and tell me your plans. I love to hear from you.