Introduces a new Foreign Investment Law

On 18 November 2014, the Government of the Bolivarian Republic of Venezuela published Decree No. 1,438. The core scope of this Decree is to establish the principles, policies, and procedures for foreign investment in the country. Key aspects of this new Decree include: • The National Center of Foreign Commerce and the Ministry of Commerce (CEMCOEX) become the principal regulatory entities for foreign investments (instead of the Superintendence of Foreign Investments). The Ministry of Petroleum and Mining, the Superintendence of Banks, the Superintendence of Insurances and the Superintendence of Securities. also become responsible for the foreign investment registration and other certificates related to foreign investment. • In order to obtain approval, at least 75 per cent of the investment must be in the form of equipment, raw materials and other tangible goods. • Only investments exceeding US$1 million minimum can be eligible to obtain a foreign investment registration. The CEMCOEX has the right to reduce this amount in order to promote foreign investment in SMEs. • Foreign investors can remit dividends for up to 80 per cent of dividends abroad at the end of the fiscal year. • Foreign investments must stay in the Bolivarian Republic of Venezuela for at least five years since their date of inception. After a period of five years and payment of any financial obligations, foreign investors may repatriate up to 85 percent of the registered foreign investment. They may only repatriate the investment volume earlier and in full in case the investment is sold to Venezuelan citizens.

• Type:

  • Entry and establishment (Approval and admission)
  • Treatment and operation (Capital transfer and FOREX, Operational conditions )

• Industry:

  • Not industry specific

• Sources:

  • Official Gazette, Decree Law No. 1438 - Decree with Status, Value, and Force of Foreign Investment Law, http://www.traviesoevans.com/memos/2014-11-18-6152-inversiones-extranjeras.pdf, 18 Nov 2014
  • Global Trade Alert, Venezuela: The government introduces a new Foreign Investment Law, http://www.globaltradealert.org/measure/venezuela-government-introduces-new-foreign-investment-law, 13 Dec 2015
  • Travieso Evans Arria Rengel & Paz, Foreign Investment Law, http://www.traviesoevans.com/t&e.php?t=Foreign-Investment-Law, 18 Nov 2014