The legal framework governing maritime activities in Venezuela is anchored in a specialised set of laws, a specialised judicial system, and the incorporation of the provisions of most legal conventions into domestic regulations.

Maritime Courts

The authority of the Venezuelan Maritime Courts is firmly established by the General Law on Aquatic Spaces (OLAS) and the Law on Maritime Procedure (LMP). These specialised courts, strategically distributed throughout the national territory, exercise exclusive jurisdiction over a wide range of maritime claims, including vessel arrest, cargo disputes, charter party disputes, insurance-related matters, and a large number of maritime liens, such as salvage, seafarers' wages, and shipping agency fees, among others.

Maritime proceedings in Venezuela are initiated through a formal written claim filed before the Maritime Courts of First Instance. The process is characterised by the principles of orality, immediacy, and concentration, beginning with the admission of the claim and the subsequent service of process, which, in the case of vessel-related actions, may be executed upon the Master of the ship. A distinctive feature of this jurisdiction is the ability of the claimant to 0 formalities. The litigation unfolds through a preliminary hearing, followed by an evidentiary phase and an oral trial, where the judge evaluates evidence and arguments to issue a merit-based judgment. Venezuela does introduce the instrument of discovery in civil law courts; however, it is relatively limited compared to common law jurisdictions.

Maritime Authority

Administrative oversight is centralised under the National Institute of Aquatic Spaces (INEA), which functions as the National Maritime Authority.INEA is responsible for executing Port State Control (PSC) functions across all national ports, ensuring that vessels comply with critical international conventions such as SOLAS, MARPOL and STCW. Furthermore, the authority is empowered to initiate administrative investigations and detain vessels for evidentiary purposes to ensure strict adherence to safety standards prior to granting port clearance.

INEA´s executive and administrative functions are decentralised through a network of Port Harbormaster Offices established across the national territory. Each Port Office is led by a Harbour Master, who acts as the local representative of the National Maritime Authority and is legally empowered to exercise direct PSC functions.

Vessel Flagging

The Law on Marine and Related Activities (LMRA) governs vessel flagging, with INEA managing the process through the Naval Registry. Venezuelan legislation is partially flexible, allowing foreign-owned vessels to be temporarily registered under the national flag through a bareboat charter party with a domestic entity. The system also allows the registration of vessels still under construction. It provides a framework for the temporary registration of foreign vessels, provided the original foreign registration is suspended to avoid dual registration.

Registering a vessel under the Venezuelan flag requires renewing all safety certificates and undergoing a pre-flag inspection by surveyors appointed by the local authorities. However, Venezuela is a party to most relevant international IMO and related safety conventions, and thus Venezuelan certificates have full international value.

Regarding crewing requirements, significant nationality restrictions remain in force. Under current legislation, the Master and at least 50% of the officers and ratings must be Venezuelan nationals; yet, the law permits a foreign superintendent to remain on board for technical oversight.

Mortgages and Liens

Regarding ship finance, the primary security instrument remains the ship mortgage, which must be executed via public deed and formally recorded before the Naval Registry to be enforceable. While the registry for ownership and mortgages is public, the current market for vessel leasing and sales has remained limited. This trend is largely attributed to the prolonged absence of traditional credit lines within the Venezuelan financial system, leading to a scarcity of such transactions in recent years.

Mortgages granted abroad are governed by the laws of the place of execution, the law expressly chosen in the contract, or the law of the mortgagor's domicile. In the event of default, the mortgagee may enforce their security through the Maritime Courts. Furthermore, if the mortgagor endangers the vessel, the mortgagee may be entitled to take possession and operate it commercially, depending on the contract’s covenants. The mortgagee may petition the Maritime Court for a precautionary arrest of the vessel, at which point the specific wording of the payment and default clauses becomes crucial. Following a judicial arrest and subsequent judicial sale, creditors are paid from the proceeds in a strict order of preference:

• first, maritime liens (privileged credits);
• second, registered mortgages (in order of filing); and
• finally, all other maritime claims.

Tax Incentives

Venezuela offers a competitive tax environment for the maritime industry, provided the structures are correctly implemented. Vessels registered under the Venezuelan flag, particularly new builds or those under bareboat charter, can benefit from a 75% reduction in income tax for the first four years of operation.

Vessels entering Venezuela for operations face a critical customs choice between final importation and temporary admission (TA). Under final importation, the vessel is nationalised, which currently triggers a significant tax burden. This typically includes:

• customs duties (ranging from 15% to 20% depending on the classification);
• VAT (standard rate of 16%); and
• a Customs Service Fee (1%).

Collectively, these obligations can result in a total tax incidence of approximately 35% of the vessel’s CIF value.

Conversely, the TA regime provides a strategic alternative by allowing for the suspension of import taxes and VAT for an initial period of one year, renewable for an additional year. This regime is particularly suitable for short-term projects or specialised service vessels. It is important to note that if a vessel under TA intends to engage in international trade, it must be registered under a “combined traffic” status; otherwise, the TA is deemed expired upon the vessel's departure from Venezuelan waters.

The 2026 Turning Point

Following last January's incidents, the Venezuelan maritime landscape has reached an unexpected pivotal turning point.

The most recent Reform of the hydrocarbons law has created a substantial “ripple effect” across the shipping industry. This legislative opening, coupled with the issuance of US General Licenses 46 and 47, has catalysed a rapid expansion in chartering activity. GL 46 now permits established US and international entities to engage in the transport of Venezuelan-origin crude, while GL 47 facilitates the critical importation of US-origin diluents, effectively mitigating the previous risks associated with secondary sanctions.

General Licenses 48 and 49 have significantly broadened the operational scope by authorising expanded investment in upstream and midstream infrastructure. Moreover, GL 50 provides an interesting framework by authorising specific international energy companies such as Chevron, Repsol, Shell, Eni, and BP to engage in new investments, as well as exploration, production, sales, and transportation operations for oil and gas within Venezuela.

The new legal framework incentivises private concessions, signalling that the Venezuelan maritime market has shifted from a restricted jurisdiction to a high-stakes arena for investment. As the country reintegrates into global energy markets, the synergy between a robust maritime commerce law and this new investment framework positions Venezuela as a strategic logistical hub for Caribbean and South American shipping lanes.