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