| If you've got a digital business that really | | | | there is very little paperwork if you're in |
| only requires a connection to the net to do | | | | an accident and they have to pay.Vehicles: |
| business, your concerns boil down to having a | | | | Used vehicles are expensive, new vehicles are |
| cost structure that maximizes your profit | | | | cheap (compared to the US), and for lots more |
| while providing you with a high quality of | | | | information read our article on buying a |
| life. Being productive is difficult in an | | | | vehicle on Margarita. The cost of everything |
| environment where you're miserable. Having a | | | | associated with owning a vehicle is cheap. |
| high quality of life isn't a guarantee of | | | | We just had a water pump replaced, and the |
| success, but it sure makes it easier to be | | | | cost was $74.00: parts were $45.00, labor |
| productive.The problem is that most of the | | | | $29.00. Gasoline is about 12 cents per |
| really enjoyable places aren't exactly what | | | | gallon, so get used to filling your tank with |
| we'd call "low-cost" and in order to live in | | | | pocket change.Food: Food costs are highly |
| a nice place you're business will have to | | | | variable compared to the US, based on what |
| really produce, or you'll have to hold down a | | | | you want to eat and whether you can eat the |
| job while you try to build your internet | | | | local products or whether you're brand-loyal |
| business. At some point this juggling act | | | | to an imported brand. We see our food costs |
| gets out of hand and your business will | | | | hovering around 1/2 of what we spent in rural |
| demand enough time that you can no longer | | | | Kentucky, but we don't buy a lot of processed |
| hold down a job to pay the bills. If your | | | | food.Entertainment: This is a highly |
| internet business isn't producing enough to | | | | variable expense. Going out to eat is cheap, |
| pay the bills, your only options are to | | | | with a 4 to 5 star restaurant costing $30.00 |
| downsize and cut expenses, burn capital in | | | | to $40.00 for two, including a few drinks per |
| hopes that your business will produce more | | | | person. Buying a bottle of wine will adjust |
| later on or give up on the business | | | | the price according to your tastes in wine |
| altogether.Those can be hard choices. Our | | | | (wine is also cheap). Dinner and coffee for |
| vote is to minimize expenses and save as much | | | | 2 at a nice restaurant will cost less than |
| money as long as possible. The lower your | | | | $20.00, and you can eat a full meal at a lot |
| burn rate the longer you last, and thus the | | | | of places for about $5.00 to $6.00. Movie |
| better your chances of success.For many | | | | tickets cost about $2.00 and going to the |
| people, this means trying to find a low-cost | | | | beach can cost anything from nothing (bring |
| location that still provides high-quality | | | | your own umbrella, drinks and food) to $20.00 |
| infrastructure, and that usually means living | | | | to $30.00, depending on whether you rent an |
| somewhere that isn't that desireable and | | | | umbrella and chair and eat at one of the |
| doesn't offer a very high quality of life. | | | | beachfront restaurants. Going to an internet |
| Sure, there are places in Kansas where | | | | cafe costs about 50 cents per hour, and |
| they're practically giving away houses, but | | | | sitting at the mall people watching doesn't |
| who wants to live in Kansas? The people who | | | | cost anything.Phone: Plan on spending about |
| want to live in Kansas are already there, but | | | | $40.00 to $60.00 a month for combined home |
| the state has a declining population because | | | | phone and cellular phone, and if your area |
| of all the people who are moving out. Same | | | | can get DSL, you can look up the charges on |
| goes for North and South Dakota. Just think | | | | CanTV's webpage to see what you'd have to |
| "40 degrees below zero" and you'll get an | | | | pay.Electric: Depends on your accomodations |
| idea why.Most entrepreneurs agree that they | | | | and usage. We have friends who pay about |
| are more productive in a pleasant | | | | $15.00 a month, and we've paid about $100.00 |
| environment.Radically Lower Your Costs By | | | | a month running the AC 24/7 in a large |
| Moving OffshoreOne of the best solutions to | | | | apartment. Some people bribe a power company |
| the dilemma is to move abroad to a low-cost | | | | guy to "fix" their meter so that it's |
| location with excellent infrastructure, and | | | | somewhat slow, and some people just hook up a |
| in this article we'll discuss the relative | | | | wire to the power line (an illegal hookup). |
| advantages of Margarita Island.Margarita is | | | | It's common.Water: Water is pumped over from |
| an island off the coast of Venezuela, and | | | | the mainland, and it's unbelievably cheap: |
| it's the largest of the three islands that | | | | maybe $2.00 to $5.00 per month. Garbage |
| make up the Venezuelan State of Nueva | | | | pickup is included in the water bill. If you |
| Esparta. Margarita is the lowest-cost | | | | have an apartment you'll probably see this |
| island in the Caribbean, but it has the added | | | | expense covered in your condo fees.Getting |
| advantage of not being an independent | | | | ResidencyAmericans are hung up on the idea of |
| country. If you've been to other Caribbean | | | | doing things "by the book" but Latin America |
| islands, you already know what we're talking | | | | isn't like that: in most cases there is a |
| about: Island nations have to be | | | | solution to your problem that involves paying |
| self-supporting, and they usually do this | | | | an official to take a special interest in |
| through the mechanism of sky-high customs | | | | getting your problem solved. It's possible |
| fees, so everything on the island is very | | | | to live on Margarita as a tourist, going to |
| expensive.Margarita has excellent | | | | the airport every three months and paying |
| infrastructure, with DSL available in the | | | | someone at Immigration about $40.00 to stamp |
| major cities of the island. Margarita is | | | | your passport with an exit and entry stamp, |
| also known as a "free port" which doesn't | | | | extending your stay another 3 months. You're |
| mean that there are no customs duties, but | | | | only supposed to be able to do this once, but |
| rather that the national sales tax (14.6%) | | | | they don't care. You're spending money on |
| doesn't apply there. It has an airport with | | | | their island and you aren't causing problems, |
| direct flights to Frankfort and Toronto (but | | | | so what's the problem? You want to stay? |
| not to the US- for that you have to transfer | | | | You have money? No problem.It's also |
| at Caracas), so travel isn't that difficult. | | | | possible to get a permanent residency visa |
| It isn't like other island locations where | | | | without too much trouble, and there are |
| "you can't get there from here- you have to | | | | lawyers on the Island who can help "expedite" |
| go someplace else first."Cost Of Living On | | | | this issue for a fee. You're paying them for |
| MargaritaWhere Margarita Island really shines | | | | their help and what they do to get you taken |
| is the low cost of living. A single person | | | | care of is their business. The permanent |
| or a couple can live comfortably on less than | | | | residency visa is good for 5 years and you |
| $1000 a month (if they own their own home or | | | | can get a Cedula (national ID card) so you |
| apartment), and that includes having a | | | | won't have to carry your passport around with |
| housekeeper and going out to eat at nice | | | | you. This makes you legal, and you won't |
| restaurants several times a week. The low | | | | have to worry about your immigration |
| cost of living is combined with tropical | | | | status.Permanent residency status qualifies |
| island living- you only need a single | | | | you for citizenship after a while (the amount |
| wardrobe, and formal dress is practically | | | | of time depends on when the next election is- |
| unheard of down here.Housing: Housing costs | | | | it seems Señor Chavez has been allowing |
| are reasonable. If you're looking for an | | | | people to become citizens if they'll vote for |
| apartment in a nice area, plan on spending | | | | him). This is a great deal because Venezuela |
| somewhere between $40k and $70k for a nice 2 | | | | is issuing Andean Community passports that |
| bedroom 2 bath (quite often you can find | | | | meet all the security requirements for travel |
| fully furnished apartments for sale). Rental | | | | in the modern world, and it's good for |
| apartments can be had for anywhere from | | | | visa-free travel to 56 countries, including |
| $400.00 to $800.00 a month for really nice | | | | almost all of Europe. In today's world |
| places: ocean view, secure building, nicely | | | | having a second passport is an extremely wise |
| furnished, nice neighborhood. Housing in | | | | idea: you don't know what the future |
| less desireable neighborhoods will run | | | | holds.Doing BusinessThe ideal situation is to |
| anywhere from $200.00 to $300.00 a month, but | | | | sell to the US or Europe (charging US or |
| your Spanish had better be pretty | | | | European prices) while living in a really |
| good.Medical Insurance and Medical Costs: | | | | low-cost place area that provides a high |
| Medical insurance for an individual will cost | | | | quality of life. Margarita is perfect for a |
| about $150.00 to $200.00 per month, although | | | | digital entrepreneur who wants to do this. |
| if you're young and healthy you can do | | | | The money you make will go a lot further than |
| without and just go to the public clinic if | | | | you'd believe, and what you don't spend you |
| you get sick (they're free). Your Spanish | | | | can either save and invest or put back into |
| needs to be good enough for basic | | | | your business.Regulation of digital |
| communication, and if you're hospitalized you | | | | businesses on Margarita is non-existent. |
| must have someone who isn't sick who can help | | | | There are no licenses, permits or other |
| care for you (the public hospitals don't | | | | issues involved. You can pretty much do what |
| provide linens, blankets or meals). Medical | | | | you want- and it isn't a matter of hiding, |
| costs for dental work are really cheap | | | | there's nothing to hide from. Because your |
| (typically 10% to 15% of what you'd get | | | | status is essentially that of a tourist, |
| charged in the US), and just about any | | | | you're handled with kid-gloves: the |
| medical procedure you can imagine is | | | | authorities don't want to annoy the goose |
| available on Margarita for 15% to 20% of what | | | | that lays the golden eggs, so tourists are |
| you'd pay in the US. If you've got a young | | | | pretty much left alone to play and spend |
| family, you'll really see your costs | | | | money.Taxation is another interesting issue. |
| drop.Having a baby by C-section will cost | | | | As a US citizen, if you reside outside the US |
| about $2500.00 (all inclusive) for a 2 day | | | | you've got an $86,000.00 tax exemption (your |
| stay at a good private hospital.Having a baby | | | | wife can also make $86,000.00), so you've got |
| naturally would cost about $1000.00 (all | | | | tax-free income between $86,000.00 and |
| inclusive) for a 2 to 3 day stay at a good | | | | $172,000.00. Venezuela doesn't tax you on |
| private hospital.Getting braces with a good | | | | money you make outside the country, so in |
| orthodontist will cost about $900.00 to | | | | effect you've got the best of all worlds: an |
| $1600.00, depending on how much work is | | | | extremely low cost of living, high quality of |
| required.Minor liposuction is a hundred | | | | life and no taxes.What it comes down to is |
| dollars or so, major liposuction will go | | | | having a business model that works, and |
| upwards of $300.00 to $600.00.A major | | | | having the time to do business. A business |
| cosmetic overhaul, combining liposuction with | | | | model that wouldn't support you in the US |
| a facelift and a breast-job will be less than | | | | might very well give you a lifestyle on |
| $3000.00.Chelation therapy (IV with Sodium | | | | Margarita that you couldn't ever have in the |
| EDTA) is about $20.00 per session.Basic | | | | US. If you put the time and effort into your |
| doctor visits cost about $20.00 to see a good | | | | business you might eventually see it grow |
| private physician. | | | | into a really nice income producer. While |
| | | | it's growing you'll avoid taxes and have a |
| Vehicle Insurance: Getting insurance for | | | | really low cost of living. At such a time as |
| vehicles offers you two choices: Full | | | | your income is high enough, you can take your |
| coverage or liability only. The full | | | | business anywhere in the world that has a |
| coverage costs about 15% of the book value of | | | | 'net connection.We don't know of any place in |
| your vehicle annually. Liability insurance | | | | the US where you can have such a low cost of |
| costs about $130.00 annually. It doesn't | | | | living and high quality of life as Margarita, |
| matter what kind of vehicle, they don't care | | | | and with its excellent infrastructure it's a |
| if you have a drivers license or not, and | | | | perfect place for a digital entrepreneur. |