Venezuela Real Estate Glossary

Key for investors: US sanctions target the Venezuelan government, individuals on the SDN list, and sectors like oil—not private real estate transactions. However, all parties in a transaction must be screened for compliance. Our Investment Blueprint includes a complete OFAC compliance assessment for your specific situation.

Key for investors: Every seller, notary, and intermediary in a Venezuelan real estate transaction must be screened against the SDN list before any transaction proceeds. We conduct comprehensive screening on all parties as part of our due diligence process.

Key for investors: Real estate ownership itself doesn't trigger FBAR. However, if you have a foreign bank account (such as a rent collection account in Venezuela or an account at a foreign bank used for property transactions), and the aggregate of all your foreign accounts exceeds $10,000, you must file. Penalties for non-compliance can be severe.

Key for investors: Foreign real estate held directly is generally NOT reported on Form 8938. However, if held through a foreign entity (like an offshore company), different rules apply. The structure of your investment affects your FATCA reporting obligations—this is analyzed in your Investment Blueprint.

Key for investors: Non-US investors (EU, Canada, Australia, etc.) face CRS reporting. Financial accounts held in Venezuela or other jurisdictions may be reported to your home country's tax authority. Your Investment Blueprint addresses CRS implications based on your residency.

Thresholds: For US residents filing jointly: $100,000 at year-end or $150,000 at any time. For those living abroad: $400,000 at year-end or $600,000 at any time. Foreign real estate held directly is generally excluded, but interests in foreign entities that hold real estate may need to be reported.

Key for investors: If you're a US person, OFAC compliance is mandatory for Venezuela transactions. If you're not a US person but use US banks, conduct dollar transactions, or have US nexus, compliance may still apply. Dual citizens have obligations based on both citizenships.

Key for investors: Our due diligence includes verification at the Registro Público to confirm clear title, check for liens, and verify the seller's ownership. The registration process typically takes 2-4 weeks after closing.

Key for investors: We assist with RIF registration as part of the acquisition process. You'll need a valid passport and additional documentation. The RIF is essential for completing the purchase and for ongoing tax compliance in Venezuela.

Key for investors: We work with trusted notaries in each city who are experienced with foreign investor transactions. Notarization can be done by power of attorney if you're not present in Venezuela.

Key for investors: Our legal team drafts and reviews this document to protect your interests. It includes property description, price, payment terms, warranties, and conditions. Once registered, you receive a certified copy as proof of ownership.

Key for investors: If you won't be present for closing, you'll need to grant power of attorney to a trusted representative (often your attorney). We guide you through the process, which can be done at the nearest Venezuelan consulate.

Key for investors: Our due diligence includes a comprehensive gravamen search to identify any liens or encumbrances. We only proceed with properties that have clear title or where existing gravámenes can be resolved before closing.

Key for investors: We verify condominium fee status (any arrears owed by seller) and review building financials. Monthly fees in premium buildings range from $50-200/month. Well-managed buildings command higher rents and better liquidity.

Key for investors: We obtain all necessary solvencias as part of the closing process. Any outstanding amounts are typically deducted from the purchase price or paid by the seller before closing.

Key for investors: All property transactions, rents, and management fees are denominated in US dollars. You don't need to hold bolívares. Currency risk is effectively eliminated for investment purposes.

Key for investors: Local entities simplify some local procedures but add compliance burden and may not optimize international tax position. Best suited for investors with multiple Venezuelan properties or local business operations.

Key for investors: A Wyoming or Delaware LLC can hold Venezuelan property with liability protection. However, it doesn't defer US tax and requires careful structuring. Your Investment Blueprint analyzes whether an LLC is optimal for your situation.

Key for investors: Offshore structures can be appropriate for non-US investors or US investors with specific circumstances. They add complexity and cost. Your Blueprint determines if the benefits outweigh the burden for your situation.

Key for investors: If you're a US person using a foreign entity to hold Venezuelan property, CFC rules may apply. Rental income from real estate often qualifies for exceptions, but proper structuring is essential. Analyzed in your Investment Blueprint.

Key for investors: Trusts can be useful for estate planning and asset protection, but foreign trusts trigger Forms 3520 and 3520-A reporting. The complexity and cost may only make sense for larger portfolios.