Rising interest in Isla Margarita Real Estate

Isla Margarita is a duty free island and it is virtually a no taxes island. The island has been duty free since 1960’s, and free port since 1975, so products with typically high taxes, as well as local goods, are very cheap. Your dollars go further in Isla Margarita. It offers a very low cost of living, cheap gasoline prices and inexpensive cost of food due to its proximity to the main land. The numbers of visitors to Isla Margarita has risen in the past few years. The beaches, windsurfing, sailing, and perfect scuba diving conditions have attracted millions of tourists, with the numbers increasing over the years. The economy in Isla Margarita is based largely on tourism, fishing, offshore financial services and mostly recently the construction industry. Tourism is of great importance, and the government is focusing more attention on this area. Isla Margarita has a strong domestic and foreign rental demand. According to Corpotur, there were 2.4 million visitors in 2006, 2.68 million visitors in 2007 and over 2.7 million visitors in 2008. Tourists visiting the Island will find an array of options from lodging to restaurants. Also American eateries such as McDonald’s, Subway, Pizza Hut, Hard Rock Café, Dominos and TGI Fridays can be found throughout the Island. If duty free shopping is on your mind, you will find stores such as Cartier, Gucci, Tiffani and Co., Hermes, Baccarat, Giorgio Armani, Clarks shoes and Hugo Boss. There are no legal restrictions for a non-resident to own property on the island and you actually get a freehold title with your beachfront property. It has no VAT, no estate taxes, no inheritance taxes and no local income taxes. Property taxes are small and very negligible. Real Estate in this Island is currently estimated about 30% lower than the other islands, but not for long. The Island has a tremendous appeal to travelers’ alike due to its superb infra-structure, amenities offered and low affordable prices. Holding on to your property for the longer term means you can benefit from investing in one of the fastest growing property markets in the Caribbean. When purchasing property in Isla Margarita, look for developments that offer an opportunity to earn through capital growth with rental returns, without capital gain taxes. If you combine this with the very attractive tax benefits of the Island, you have the optimum in overseas property purchase. One particular development that has brought tremendous appeal to the Island is Caracola Beach and Spa Resort (http://www.caracolabeachresort.com): A luxury beachfront Caribbean resort that offers investors with additional tax advantages. There is a rental income guarantee to the purchaser of 7% of the purchase price, per year, for ten years, and no maintenance fees are due as long as the buyer enrolls in the rental program of its condo unit. This Modern Style Caribbean Resort offers commanding views of the ocean and mountains, a superb list of amenities and tremendous investment options.