A guide to buying property in Puerto Rico for foreign buyers: With its golden sand beaches and world-class surfing requirements, rich history and culture, and valuable tax purposes, Puerto Rico is an investor-friendly address unlike any other.
Our guide takes you through the process of buying property in Puerto Rico from beginning to end, including the beginning of the real estate market, the buying process, and the taxes you need.
Overview, A guide to buying property in Puerto Rico for foreign buyers
Like many Caribbean destinations, the island of Puerto Rico offers spectacular white sand beaches, ideal cliffs for snorkeling and diving, world-class surfing conditions, majestic mountains and forests such as El Yunque National Forest, and unique history and culture blending., Latin and Caribbean traditions.
What separates the island from its Caribbean neighbors is its status as an unincorporated autonomous region of the United States. As a US territory, Puerto Ricans are United States citizens, English is an official language, the region is subject to US federal laws and the official currency is the US dollar. Therefore United States citizens can travel from the mainland without a passport and enjoy the right to live in Puerto Rico.
The attraction of the Caribbean island, being a region of the United States with security, has established Puerto Rico as one of the top tourist destinations in the region with a vibrant economy and high-quality infrastructure.
The additional incentive has come in the form of a series of tax incentives for high net worth individuals and businesses, which can entice affluent property buyers from the mainland and beyond. Many prestigious resort developments offer the island’s stunning coastline with golf courses and condos offering high-quality homes with access to world-class amenities.
While Puerto Rico has a lot to offer investors, the region has also faced many challenges, including Hurricane Maria, which caused severe damage to the island in 2017. With strength and determination, the island has been slowly rebuilt and the property market is now once again showing strong signs of a surge in demand, an increase in prices.
Buy property in Puerto Rico
Can foreigners buy property in Puerto Rico?
Yes, foreigners can buy property in Puerto Rico and Puerto Rico’s government welcomes investment from foreign buyers. The title simple fee can be obtained and the property may be purchased in the name of an individual or corporation.
Buying a property in Puerto Rico is a relatively simple process, which usually involves the following steps:
- Start your property search.
- Locate your entire property and submit a written proposal.
- Once you have made an offer on a property and that offer has been accepted, you will usually have to pay a deposit of 5% to 10% which will be in escrow.
- You should appoint a lawyer to assist you in the procurement process.
- You will need to sign a public deed for the purchase of the property which must be prepared by a notary, executed in their presence, and then filed in the Puerto Rico registry of the property.
- The transaction will be completed upon transfer of the balance of the purchase price and payment of all required taxes and fees.
Registration and filing fees
Fees must be paid by the buyer to many offices, including the Municipal Revenue Collection Center (CRIM), the Treasury Department, and Puerto Rico’s Property Registry.
These costs are usually less than 0.5% of the purchase price.
The sale and purchase agreement must be made by a notary whose fees are included by the seller.
The maximum allowable fee is 1% of the value of the property for the first US $ 500,000 and 0.5% of the value over $ 500,000.
We would recommend that you consult a reputable local attorney to assist with the transaction. Legal fees are typically 0.5% to 1% of the purchase price or, in some cases, a fixed or hourly fee.
Each party covers the cost of its legal fees.
In Puerto Rico, real property is subject to an annual real property tax that varies from 8.03% to 11.83% according to the value and location of the property.
Find Puerto Rico Real Estate Listings
As an expert on luxury Caribbean property, we can introduce you to the wide selection of the finest residential property in Puerto Rico.
House for sale
Our website is the ultimate destination for finding a wide selection of villas, homes, and homes for sale in Puerto Rico, as well as apartments and condos for sale in Puerto Rico.
Land for sale
You can also browse undeveloped land. Buying lots of land provides you with a blank canvas and the opportunity to build your dream home in Puerto Rico.
Whether you are looking for beach land or a lot located in the center, we are here to help you find the right land for sale in Puerto Rico.
For large parcels of land for commercial development, please see our commercial real estate listings.
Puerto Rico Residency and Citizenship
How long can a foreigner live in Puerto Rico?
Since Puerto Rico is an unincorporated area of the United States, US citizens do not require a passport or visa to travel to Puerto Rico.
Citizens of countries with visa waiver programs, including UK and EU member states, who wish to travel to the United States for leave or business, must apply for ASTA (Electronic System for Travel Authorization) before departure.
How do you become a resident of Puerto Rico?
US citizens are free to travel to Puerto Rico without presenting any new documents such as work visas. Citizens of other countries who wish to become residents of Puerto Rico are required to secure a resident foreign status, a work visa, a student visa, and/or a temporary visa as outlined in the US mainland and US federal immigration regulations. is. is. is. it happens.
Apply to Puerto Rico.
To become a resident of Puerto Rico, a person must spend at least 183 days in Puerto Rico during the tax year and have a physical residence on the island. Becoming a resident of Puerto Rico can provide significant tax benefits under Act 40-2014 which consolidates the various incentives introduced under Act 20 and Act 22.
Becoming a citizen of Puerto Rico
Since Puerto Rico is an area of the USA, Puerto Ricans are citizens of the USA.
A foreign national over the age of 18, who has resided in the United States with a permanent resident (Green) card for at least 5 years, may understand English and May pass the naturalization test, may be eligible to apply for citizenship by naturalization.
Sending money to Puerto Rico
You can save money when investing in Puerto Rico real estate by using a foreign exchange specialist to get the best rate for your property purchase. We have partnered with foreign exchange specialist Halo Financial to help you get the best exchange rate while making a lump sum or regular international payments for property purchases in Puerto Rico.
Know everything about a guide to buying property in Puerto Rico for foreign buyers at https://www.rd.usda.gov/pr