buying real estate in venezuela 2026

Can a foreign company buy a property in Venezuela? A practical guide for funds and investors in 2026

By Dr. Bianca Marán · Partner and Director of the Corporate Area of VENFORT Abogados

Yes. A foreign company can buy real estate in Venezuela, become a partner in a Venezuelan company, open a branch or a subsidiary, and remit the dividends from its investment abroad.

The legal framework has existed for years. What has changed in 2026 is the environment: a progressive relaxation of the sanctions regime and concrete signs of openness to foreign investment, such as the new hydrocarbon and mining laws. For a fund or a family office, the question is no longer whether it is possible to invest, but how to do it in an orderly manner.

This guide answers the questions we receive most frequently. The procedures are common for our team in Caracas. Here we explain them in simple terms.

Why 2026 is different

For years, the main obstacle to investing in Venezuela was not the Venezuelan law. It was the regime of international sanctions and the uncertainty about their scope.

That picture has changed. In 2026, the U.S. Office of Foreign Assets Control (OFAC) issued a series of general licenses that broaden the scope of action: among them, the General License 57, Decree of April 14, 2026, authorizing financial services with the Central Bank of Venezuela and with the main public banks, and General License 49B, The 28 September 2026 law allows for the negotiation and signing of conditional contracts for new energy investment, the execution of which requires subsequent authorization. Neither of these is a real estate license, and it is not necessary that it be so: the private real estate sector has never been subject to a general ban. Official program page collects the updated list.

It is important to be precise. The United States’ sanctions against Venezuela are selective, not general. According to OFAC’s own frequently asked questions, operations with the country are not prohibited if no blocked individuals are involved (FAQ 519 and FAQ 680). The European Union and the United Kingdom also maintain regimes aimed at specific individuals, without prohibiting real estate investment (EU Council, December 15, 2025; guide of the United Kingdom).

In short: a transaction between private parties not sanctioned is legal. What is required is a rigorous screening of the counterparties and the origin of the property, and, if the investor is an American, confirmation that the payments of fees and taxes to Venezuelan public agencies are covered by a general license. Both of these are part of our work in every transaction.

Three ways to enter

Venezuelan law allows the foreign company to choose the structure that best suits its investment:

Buy directly as a foreign company. It is possible. The company needs a Tax Information Registration Number (RIF) and must prove its existence and the representation of the signatory with apostilled and translated documents by a public interpreter. This is the simplest way to obtain a timely acquisition.

Forming a Venezuelan subsidiary. The usual form is the Compañía Anónima (C.A.), which can have 100% foreign capital. It registers in the Mercantile Registry, obtains its RIF and is ready to operate in a few weeks. This is the structure we recommend when the investment is going to have continuous activity: renting an office building, repositioning a category hotel, or accumulating several assets. In the case of the hotel, the subsidiary is also the one that obtains the national tourist registration and the municipal activity license; these are procedures that our Caracas team manages on a regular basis.

Opening a branch. The Commercial Code (article 354) requires the foreign company to register its constituent document and the opening agreement in the Commercial Registry, publish them, and appoint a representative in Venezuela. The branch does not have its own legal personality, so the parent company is directly responsible. For that reason, fewer branches are used than subsidiaries.

Outside of regulated sectors (banking, insurance, telecommunications, hydrocarbons or mining, among others), being a partner in a Venezuelan company does not require prior authorization. The investment is documented in the Mercantile Registry and, if the investor wishes to access the repatriation guarantees of the law, they must also register in the Foreign Investment Registry, as explained below.

Two limits that are worth knowing. In the border security zones and in the other declared security zones, the acquisition of real estate by foreign persons requires prior authorization from the Ministry of Defense (Decree No. 1,100 of 1986). And lands with agricultural potential have their own registration with the National Institute of Lands and Rules of Productive Use. For an urban property in Caracas, it is normal for neither of the two limits to apply. Nevertheless, we verify in each case that the property is not located in a security zone, for example next to a military installation.

Our team in Caracas manages these procedures remotely. The investor does not need to travel to start.

How to buy a property and who to contact

The process has four steps. None of them are complex if you prepare in advance.

1. Review of ownership. Before signing anything, the chain of ownership is studied in the Public Registry with jurisdiction over the property, the certification of encumbrances, the cadastral record and the occupancy status. This is the step that determines the operation.

2. Option or promise of sale and purchase. It is signed in front of a notary and sets the price, deadline and conditions. It allows the review to be completed before payment is made.

3. Recaudations. The sales contract must be drafted and notarized by a lawyer registered in Venezuela and identify the property with its cadastral code (articles 23 and 48 of the Registration and Notary Act). The seller presents municipal solvency for the urban property tax, the cadastral deed, their RIF and the proof of advance income tax required by the SENIAT in the sale of real estate (0.5% of the price, article 86 of the Income Tax Act), unless the seller is a natural person and the property is their principal residence (article 17). The buyer signs a sworn declaration of origin of funds, according to the model provided by Saren itself. We prepare and verify each document.

4. Protocolization. The sale and purchase is granted before the Public Registry, which verifies the payment of the taxes, registers the document and makes the new ownership public. From that moment on, the buyer becomes the owner in front of third parties.

Payment can be agreed upon in foreign currencies. Since the Exchange Agreement No. 1 of 2018 (Official Gazette No. 6,405 Extraordinary), the free convertibility of the currency throughout the national territory is governed. The foreign currency circulates alongside the bolívar and the Central Bank publishes the reference exchange rate daily.

Is there an official price list?

There is no official national price list for real estate. The price is set by the parties involved.

What does exist is a calculation base for the registration fees. The Law on Registries and Notaries (Official Gazette No. 6,668 Extraordinary, of December 16, 2021) establishes in Article 83 a staggered processing fee for sales: 0.50%, 1% or 2% of the transaction value, according to the increments. The law expresses these increments in a reference unit that the registry converts into bolivars at the time of settlement. In practice, the registry calculates the rate and issues the form; our team reviews it before payment.

The municipalities, for their part, maintain cadastral value registers that serve for the urban property tax. They are not an official sales price.

Taxes that the investor should be aware of

A clear summary, with the figures current at the date of publication:

  • Income tax on the subsidiary. Progressive tax rates of 15%, 22% and 34% on net wealth, according to brackets. With the current value of the tax unit (43 bolivars since June 2025), the first two brackets are very low and, in practice, almost all wealth is taxed at 34%. The profit obtained from the sale of a property is taxed at this rate.
  • Dividend tax. 34%, retained at the source, on the portion of the dividend that exceeds the income already taxed in the company. If there is no excess, no additional tax is due. If the shareholder resides in a country with an agreement to avoid double taxation with Venezuela, such as Spain, this withholding can be reduced or eliminated.
  • Tax on Large Financial Transactions. 3% on payments in foreign currency to special taxpayers or outside the national banking system. Operations in bolivars are at 0% since Decree No. 4,972 of 2024. This is a cost that is included in the design of the payment.
  • Tax on urban real estate. Municipal and annual. The quota depends on each ordinance; it is checked before buying.
  • Tax on Great Estates. Only for special passive taxpayers with a net worth equal to or greater than 150 million tax units. The current rate is 0.25%. It affects few structures, but it should be reviewed.
  • Value-Added Tax. It does not tax the sale of real estate. The 2020 reform (articles 27 and 62) provides for an additional rate of between 5% and 25% for sales of real estate paid in foreign currency, but it would only apply if the Executive decrees the decree fixing the percentage, and that decree does not exist. Today, it is not being charged or budgeted for.
  • There is no tax on property transfers like the Spanish one. The purchase costs are the registration fees and notarization fees described above, the state tax stamp, which varies by region, and small amounts for certifications and copies.
  • If a branch is chosen, Its profits are taxed like those of a subsidiary, and the remittance to the parent company bears an tax equivalent to that of dividends, which can be deferred if it is reinvested in the country.
  • If the subsidiary rents or operates the property, the rental of real estate not intended for housing causes VAT (16%); the municipality taxes income with the tax on economic activities, and if there are workers, the special contribution for the protection of pensions is paid (9% of payments to staff, including bonuses).

In October 2026, the Executive announced a tax reform to harmonize the tax burden, the text of which has not yet been published. Meanwhile, the SENIAT has adopted simplification measures, such as streamlining the registry of special taxpayers and digital interconnection with banks, the Central Bank, and SAREN. We will update this guide when the reform is published.

How dividends are repurchased

The Constitutional Law on Foreign Production Investment (Official Gazette No. 41.310, of December 29, 2017) establishes the basic rules:

  • National treatment. Foreign investment is treated in all respects the same as the investment of resident nationals (Article 33).
  • Dividend distribution. Annually, from the closing of the first fiscal year, in freely convertible currencies and up to 100% of the verified profits, once the purpose of the investment has been achieved (article 28). In extraordinary economic situations, the Executive may lower that limit to a range between 60% and 80%.
  • Repatriation of capital. After a minimum period of two years from the registration of the investment, subject to payment of taxes and liabilities (articles 19 and 26).
  • Registration. The investment is registered in the Foreign Investment Register, which is administered by the ministry with competence in the matter (articles 8 and 10). The law sets a minimum amount of 800,000 euros for that register, which the governing body may reduce (article 19).

Three practical precision points. The first: the law itself excludes the purchase of real estate from the obligation to sign an investment contract with the State (article 38); the investor purchases with an ordinary private contract. The second: registration is not mandatory for buying; it is the key to guarantees of remittance and repatriation, and it is advisable to process it when the investment exceeds the threshold. And the third: the Exchange Agreement No. 1 of 2018 eliminated the exchange restrictions that for years hampered the withdrawal of dividends: today, remittance is documented with the registration of the investment, the accreditation of the payment of taxes, and the favorable opinion of the competent ministry. We prepared that file from day one, so that the withdrawal is prepared before the moment arrives.

Protection of investment

Spain and Venezuela have an agreement in force Agreement for the Promotion and Mutual Protection of Investments Since September 10, 1997. None of the parties has filed a complaint. Article XI allows the investor to resort to Venezuelan courts or international arbitration after six months of negotiation. Venezuela denounced the ICSID Convention in 2012, so the practical route today is the ICSID Complementary Mechanism or an ad hoc tribunal in accordance with the UNCITRAL rules.

For a European fund, structuring the entry through a Spanish company or another jurisdiction with an existing investment treaty and double taxation agreement is a decision that is made before buying. Our teams in Caracas and Madrid design it together.

An illustrative example

Imagine a European fund identifying an office building in Caracas with an attractive entry price. The title review reveals three findings:

  • A link in the chain of unregistered ownership.
  • An old tax that has never been canceled.
  • A tenant with a long-term contract and rent below the market price.

None of this prevents buying. The three change the price, the structure and the timetable. Resolved before signing, the fund buys with a clean title and a clear exit plan.

This example is illustrative and does not correspond to any actual operation.

Before submitting any asset to an investment committee, we review six points: the chain of ownership, the charges and judicial measures, the origin of the asset and its previous owners in light of the Organic Law on the Extinction of Dominance of 2023 (Official Gazette No. 6,745 Extraordinary), which protects the third-party acquirer in good faith who acts diligently, the occupation and leases, the tax situation, and the screening of sanctions from all counterparties.

Frequently asked questions

Can a foreign company buy a property in Venezuela without forming a local company?

Yes. It requires a RIF and proof of its existence and representation with apostilled and translated documents. For investments with continued activity, a subsidiary is usually more efficient.

How long does the process take?

A subsidiary is established within a few weeks after receiving the documentation. The sale-purchase depends on the title review; once the necessary formalities are completed, the protocolization process is a short process.

Can I take out the dividends from the country?

Yes. The law recognizes the right to remit up to 100% of the verified profits each year and to repatriate the capital after two years from the registration of the investment. To qualify for these guarantees, the investment must be registered in the Foreign Investment Registry.

Conclusion

Venezuela offers today a rare combination: assets at prices that reflect past risk and a regulatory framework that is open to investment. The law allows buying, structuring and repatriating assets. The procedures are known and manageable.

The difference between a good investment and a problem lies in the title, in the vetting of counterparties, and in the entry structure. That is the part where a boutique firm with teams in Caracas and Madrid adds more value: direct attention from the partners and a legal filter that accompanies the investor from the first conversation until the exit.

You can learn about our services Corporate law and foreign investment and expand the context with our guide on How to form a company in Venezuela in 2026.

You can request one confidential consultation to value an asset, an investment structure or an acquisition project.

VENFORT Abogados · Caracas · Madrid · Presence in 15 jurisdictions

Corporate law · Foreign investment · Sanctionary compliance · Economic criminal law

About the author

Dr. Bianca Marán, partner and director of the corporate area of VENFORT Abogados, She advises investors and companies in corporate law, mergers and acquisitions, compliance and negotiation. She received her degree from the University of Alcalá, the Higher Institute of Administration Studies, and the Andrés Bello Catholic University.

This content is for informational purposes only and does not constitute legal, tax or financial advice. The figures correspond to the regulations in effect at the time of publication and may change. The example text is illustrative. Each transaction requires an individualized and confidential analysis, including the assessment of applicable sanctions compliance.

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