| Buying
a Car & Insurance
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.
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