Legal protection of investment : Venezuela has subscribed various treaties, which aim to protect and promote international investment and are eligible for the granting of guarantees against non-commercial risks by State insurance companies.
Mechanism Against Non-Commercial Risk : The multilateral agency for the guarantee of investment (MIGA) was formed on April 12th 1988, as part of the World Bank. MIGA was created with the aim of foresting foreign investment in developing countries. The system offered by MIGA has been used in Venezuela since May 10, 1994.
MIGA has brought its work through the granting of guarantees against non-commercial risk, such as no convertibility of currency expropriation, war, civil, disturbances and contractual irregularities on the part of the country receiving the investment; and also through the provision of consultancy services to member countries regarding means of evaluating foreign investment.
In relation to the risk that are covered by the guarantee provided by MIGA, exchange rate risk is not covered, nor are that actions of the government in areas that are the responsibility of the investor, or that came into force before the agreement in Venezuela.
Convention of the Settlement of Investment Disputes between States and National of the other States : The International Centre for the Settlement of Investment Disputes (ICSID). Organized under the protection of the World Bank. The ICSID has as its objective the facilitating of conciliation and arbitration procedures, which are different depending on the countries involved.
Bilateral Agreements for the Promotion and Protection of Investment : Venezuela has signed several agreements for the promotion and protection of investment with: Argentina, Barbados Chile, Ecuador, Holland, Portugal and Switzerland. Furthermore, Chapter XVII of the Treaty of the Group of Three (G-3) relating to investment established an agreement for the promotion and protection of investments between Mexico, Colombia and Venezuela
Since 1997, treaties for de Promotion and Protection of Investment were approved by the Congress of the Republic with Brazil, The Czech Republic, Denmark, Spain, Great Britain and Northern Ireland, Lithuania, Paraguay and Peru.
Bilateral Treaties for the Avoidance of double Taxation : Venezuela has signed various international treaties whose objectives are the avoidance of double taxation for companies, related to income tax, for this business and investments carried out in Venezuela. These treaties are:
Treaties of Double Taxation : Those are treaties currently in force with Germany, Belgium, France, Holland, Italy, Great Britain and Northern Ireland, Norway, Portugal, Czech Republic, Sweden, Switzerland, Trinidad and Tobago, and United States of America. Other treaties, not yet in force, have been signed with, Indonesia, Korea, Mexico, Barbados and Denmark. Agreements underway: Canada, Chile, Cyprus, Hungary, Jamaica, Japan, Lebanon, Lithuania, Malaysia, Malta, Paraguay, Poland and Uruguay.
Treaties for the Avoidance of Double Taxation related to Sea and Air Transportation: Currently in force there are treaties for the avoidance of double taxation in the area of sea and air transportation with Germany, Brazil, Trinidad y Tobago, Portugal and Switzerland. Agreements exist for the exoneration of air transportation with: Argentina, Canada, Chile, Colombia, Spain, USA, France, Great Britain and Northern Ireland, Holland and Italy. These agreements exonerate both air and sea transportation, but Belgium only the maritime area.