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Great second home or investment property. This 2 bedroom condo has lots of open spaces, with a terrace that overlooks the famous Parguera cayes. This 3rd-floor apartment is built on 2 levels. The first level houses a kitchen, laundry area, dining and living area which opens to the roomy terrace overlooking the ocean. The 2nd floor has two spacious bedrooms and two full bathrooms- with lots of closet space. Pr...
Excellent location on this 2 bedroom, 2 level condo at the Grand Bay Beach Condominium in Rio Grande. Nice wrap-around terrace with ocean views. This oceanfront community offers security, an on-site generator and cistern. Short term vacation rentals allowed, making this a great investment opportunity. Beautiful pool, 2 parking spaces, laundry room, elevator building. Grand Bay Beach is a Condominium located a...
Spacious 3 bedrooms, 2 bath home, in good condition, gated community. Excellent location close to Puerto del Rey Marina, Beaches and other area attracttions. Showings are available by appointment to qualified buyers only. Must provide bank pre-approval or evidence of funds, if it's a cash sale to make an appointment. HOA: $75 p/mo. CRIM (Annual Property Tax) $1,465 *Exemptions available if primary home reside...
Our island's beautiful environment offers some amazing places, making for an unforgettable tropical escape… and this is one of them. Located in the small town of Parguera in Lajas, this elevated 3 level, multifamily property is just steps to the boat ramp. A town popular for diving, boating and fresh sea food, it has several lovely cays and islands- each with its own special appeal. Ground level houses a spac...
If you are looking for an amazing view on a Puerto Rico property with a steady rental income, Marina Lanais is it. Located in the popular area of Croabas in Fajardo, this turn-key property is ready to be rented out with a clean, coastal decor throughout the condo, which opens up to an amazing view of the sea. Studio with one full bathroom, plenty of closet space. Property can be modified and turned into a for...
Beautiful condo with large upper-level terrace and fantastic mountain views... just minutes from beaches, marinas, rainforest & other area attractions. Comfortably laid out spaces with lots of windows and views. The upper level has an additional bedroom and kitchenette with its own bathroom with direct access to the large terrace ideal for hours of lounging by the Caribbean sun! This unit is sold furnished an...
Beautiful condo with large upper-level terrace and fantastic ocean and mountain views... just minutes from beaches, marinas, rainforest & other area attractions. Comfortably laid out spaces with lots of windows and views. The upper level has an additional bedroom and kitchenette with its own bathroom with direct access to the large terrace ideal for hours of lounging by the Caribbean sun! This unit is sold fu...
Beautiful & spacious condo with ocean views & terrace... just minutes from beaches, marinas, rainforest & other area attractions. Comfortably laid out spaces with lots of windows and views. This unit is sold un-furnished and has air conditioner units. The complex offers 24-hour security, pools, clubhouse, game rooms, gym, meeting rooms, tennis courts and beautiful green areas throughout. Also available are st...
This stunning one-story sits on a large lot in a hot neighborhood. From the open-concept kitchen & living space to the large backyard, there is plenty of room for the whole family to enjoy. Large kitchen features two bar areas for hours of entertaining friends & family. Living room opens up to a fully fenced yard with fruit trees. Guest bedrooms with large walk in closets. One guest room has room to expand an...
Beautiful & spacious condo with terrace overlooking the ocean. Just minutes from beaches, marinas, rainforest & other area attractions. Comfortably laid out spaces with lots of windows and views. This unit is sold fully furnished with appliances and has air conditioner units. The complex offers 24-hour security, pools, clubhouse, game rooms, gym, meeting rooms, tennis courts and beautiful green areas througho...
Beautiful land for sale at the foothills of El Yunque Rainforest, with stunning views and vegetation. A perfect place to develop ecological projects such as, eco-boutique hotel, Guest House or your dream home! San Juan (35 min.), Luquillo Beach (15 min.), and easy access to Ceiba-Ferry to Culebra and Vieques islands.( 7050 m/c – 1.79 cds ) Coord: 18.35393 -65.81036..
The first step to enter into a real estate transaction in Puerto Rico is to understand the process of buying real property in this jurisdiction. It is important to be represented by a licensed real estate professional to guide you in every step of the process.
You may purchase property individually or by setting up a legal entity such as a limited liability company or a corporation.
Identifying your property
Once you have identified the property you are interested in, our first step will be to submit a written offer on your behalf. Typically the offer is a one-page document outlining the price and any specific conditions the purchaser may have. Once the seller receives and once offer is accepted between both seller and purchaser, a formal Purchase and Sale Contract is issued for review and signature.
A standard Purchase and Sales Contract or 'Option' Contract if you are obtaining bank financing, will include the complete terms agreed upon by both parties, as well as the agreed upon closing date.
Offer and Contract
With your signature of the Purchase and Sale Contract or Option Contract, you will be asked to provide a good faith deposit. The typical rule of thumb is 10% of the purchase price and this will secure the contract until closing, taking the property off the market until contingencies are met. Escrow agents in Puerto Rico are in most cases the seller's agent and are required by law to have a non-interest bearing escrow account, for such purposes.
Notary and Closing
In Puerto Rico, public deeds for the purchase and sale of real property must be prepared by a Notary and executed by the parties before the Notary. A Notary (not to be confused with a Notary Public as referred to on the US mainland) is an attorney at law licensed by the government of Puerto Rico specializing in real estate matters and who possesses the power to clear title and register the deed among other things. Puerto Rico Notarial Law imposes the obligation on the Notary to authorize only valid and recordable titles.
A typical transaction time may vary, but if extra time is needed due to process, the Notary will issue a time extension, in order to satisfy all requirements necessary to close.
Few places on earth offer a return on investment the way Puerto Rico does. With an ever-growing array of services and emerging industries, part of your success will be directly attributable to the incentives available.
In order to bolster a diversified economy, the local government has created an aggressive economic and tax incentives program with the purpose of helping operations on the island become more profitable to those companies who establish themselves here.
Enacted in 2012, along with Act 22, this tax incentive law aimed to boost the country’s economy by helping wealthy outsiders to make the transition to island life. Act 20 is more commonly known as the “Export Services Act”.
It is designed to provide incentives through low tax rates and exemptions for companies that wish to establish or expand export services in Puerto Rico. If you have a business and you are interested in providing services to outside markets from Puerto Rico, you may be eligible for incentives.
Qualifying services are many and varied. You may be eligible for tax incentives under Act 20 if you work in advertising and Publica Relations, research and development, engineering (of almost every stripe), accounting, computer software development, investment banking, or dozens of other fields. If you’re not sure whether you qualify, it’s probably best to speak to a lawyer or accountant to find out.
Under Act 20 you could enjoy benefits like a 4% corporate tax rate, as well as exemptions on property taxes, dividends, and profit distributions (100% exemption for those that qualify).
This Act, known as the “Individual Investors Act”, went into effect at the same time as Act 20, which is why the two may seem similar at first glance. Both, for example, offer a 4% corporate tax rate and exemptions. However, Act 22 focuses less on business earnings and more on personal income.
In order to benefit from Act 20, you must establish or expand your business in Puerto Rico. To gain tax incentives under Act 22, you need only become a “bonafide” resident, meaning you’re in the country a minimum of 183 days out of the tax year, you don’t have a tax home outside Puerto Rico, and you don’t have a closer connection in any other country than you do in Puerto Rico.
As a resident, you will not be subject to U.S. federal income tax (even though it is a U.S. territory). If you've deemed eligible for Act 22 incentives, you’ll also enjoy 100% exemption for capital gains, dividends, and interest income on all passive income earned after becoming a resident.
The idea is that the money you save on taxes will be reinvested into Puerto Rico’s economy. In other words, you get a tax haven and Puerto Rico gains access to your wealth not through taxes, but through your spending.
Enacted in 2008, Act 73 is also known as the “Economic Incentives for the Development of Puerto Rico Act”. The title may be long-winded, but the concept is simple: to provide tax incentives designed to develop local industry, drive economic growth, and encourage outside investments.
Eligible activities could include commercial manufacturing, recycling activities, hydroponic planting and cultivation, construction of sustainable communities, and more. There is also a diverse range of tax credits and exemptions linked to this Act.
This article should not be regarded as offering a complete explanation of taxation and legal matters in Puerto Rico. No person, entity or corporation should rely on this article in whole or in part and readers are advised to obtain comprehensive advice in relation to their personal circumstances from a qualified professional person or firm of advisors prior to taking any action.
My name is Jocelyn Ucedo and I am a licensed real estate agent (Lic#V3493) in Puerto Rico. I am also a member of REALTOR®, RSPS, CIPS and ePRO.