That's the bad news.

The good news for foreigners is that it has also caused a devaluation of more than 50% which has made the cost of living very reasonable in dollar or Euro terms. Also Isla Margarita is a very peaceful island. We seldom are affected by what goes on in the rest of Venezuela. Safety and security here are better than in any other vacation spot and certainly far better than in most major cities throughout the world. We have lived here since 1987 without any incident related to our safety or security.

The national strike that affected Venezuela (Dec. 2002 - March 2003) is now over and Isla Margarita has returned to normal although there are now exchange controls and some regulated prices that may contribute to future shortages.

Cars are generally more expensive than North America and cheaper than Europe (There is now a new, April '03, government plan that allows the sale of certain stripped down duty paid models for as low as US$10.000 at the official exchange rate). Here on Isla Margarita it is possible to buy a car with duty free (Puerto Libre) license plates. This allows you to save about 30% on the cost of the car. The negative is that you can not take it outside the duty free area (to the mainland) and you must also present it to the customs people once a year to show them that it is still here. You can also buy " duty paid" cars which have free movement throughout all Venezuela. All the major manufacturers are represented here including Toyota, Honda, Mitshibushi, GM, Ford, Chrysler and other assorted Korean, Italian and Japanese manufacturers. Sometimes the models that you get here are not exactly the same as you would find in your home country. Gas, by the way, is only US$0.06 per litre (US$0.23 US gal) for 95 octane unleaded. The government requires minimal third party insurance which is very cheap and covers very little (Just renewed ours with extended liability coverage for $67.50 annual - March 03).  You can also get full coverage including collision damage, etc. which runs between 8 - 10% of the car's value per year. A small duty free Toyota Yaris which costs around US$12,000 would cost up to US$1,200 per year for full coverage. Give yourself enough time to shop around for the coverage as it varies greatly in price and often the deal offered by the dealer may not be the best although it could be.

Banking

We do not recommend keeping very much in Venezuelan banks. The banking system is poorly controlled and with regular devaluations and the occasional failure any money in Bolivars can be quickly lost. It is recommended that you use outside banks and your ATM card or credit card to get local currency as needed. (See the comments above about exchange controls and the "black market"). Even keeping a supply of US$ traveler's checks as "just in case" money is a good idea. If you make a large purchase then you can have the money transferred from your bank to a local one. (Not the best move now with exchange controls).

Note: the above recommendations are now affected by the government exchange controls which have set the Bolivar at Bs. 1600 to US$1. Withdrawals on credit and bank cards will be at the official rate less charges and commissions.

We recommend using a large bank like Banco Provincial (the largest in Venezuela) or one of the other major ones. Under no circumstances use one of the many smaller banks as our experience shows that money can be lost even with signed receipts. One other thing is that in our experience the larger the bank the more arrogant and inattentive they get. It's not unusual to find line-ups of 40 or 50 people in line waiting to get to a teller and the bank has only opened 2 of their 10 windows. Unfortunately this is one of Banco Provincial's worst faults.

Language

It is always best to have a working knowledge of Spanish as few people who you will be dealing with on a day to day basis speak any other language. A few may speak English but not enough for you to get by. There are a number of schools and teachers on the Island who would be willing to teach you for a fee. You should use the 6 months to a year renting to learn the language before jumping in with both feet.

Starting a Business or Working

Many of you, no doubt, would like to find work here. This is a very difficult proposition.You first will need a work visa which is difficult to obtain in the present political climate. Once you do obtain a visa then you will find that salaries are MUCH lower than you would expect. Some 80% of the country works for the minimum wage of about US$120 per month (or less) and as a result even management and professional salaries are not much higher. To obtain more information about visas, work permits and requirements to live in Venezuela in general, and Isla Margarita in particular, please visit or contact the nearest Venezuelan embassy or consulate in your own country. They are the only ones who have the latest info.

The only way to make a reasonable level of income is by having your own business and the easiest way to do this is to buy one which already has all the necessary permits and licenses to operate. Dealing with the government on any level can be a very frustrating exercise and to start fresh can be a killer. Due to the current economic slow down and the devaluation there are many businesses for sale. We hope this answers at least some of your questions. If you can think of anything that we did not cover then drop us an e-mail and we will add it.

All the best and good luck...Dan & Trudy O'Brien.

• Travel info. to Isla Margarita Click Here
• To stay at Casa Trudel Click Here
• To see houses to rent at Casa Trudel Click Here