Paradise at a Lower Cost


Puerto Rico boasts a more affordable standard of living than most locations across the United States. The cost of living in San Juan, the island’s capital and the center of business activity, parallels that of other major metropolitan areas. As you move away from the capital and into less populated areas, the cost of living decreases.

When it comes to housing, your options are plenty. Puerto Rico has an incredible variety of real estate properties to fit your taste and budget. Also, the Government of Puerto Rico provides generous housing incentives that make buying a home financially sensible. Below are some of the components of Act 132 of 2010 for new residential properties:
  • Creates an incentive program aimed at facilitating and promoting the purchase of residential property and other real-estate, on all levels
  • Eligibility:
  • Individual, estate, corporation, partnership or trust, resident or nonresident buyer in Puerto Rico that:
    • Purchases a new residential property between September 1, 2010 and June 30, 2011, to rent, or rents an existing residential property located in Puerto Rico
    • Purchases any existing residential property located in Puerto Rico that is suitable for family housing and which is not a new construction
    • Purchases any existing nonresidential property located in Puerto Rico between September 1, 2010, and June 30, 2011
  • Price of nonresidential property cannot exceed $3 MM
  • Benefits under this law:
  • Tax Concession - Income earned from rental of eligible residential property will be 100% exempt from Puerto Rico's income tax
    • Tax-exemption period - up to 10 taxable years starting January 1, 2011 and ending on December 31, 2020
  • New Residential Property
    • 100% exemption on capital tax gains at time of resale if seller purchases property during the abovementioned time-frame
    • 100% exemption from internal revenue stamps fees, registration vouchers, and filing fees associated with purchase deed and the buyer's mortgage deed
    • 100% exemption from special state property tax
    • 100% property tax exemption for five years
  • Existing residential properties and nonresidential properties (up to $3 MM)
    • 50% exemption on capital gains
    • 50% exemption on capital tax gains at time of resale if seller purchases property during the abovementioned time-frame
    • 50% exemption from internal revenue stamps fees, registration vouchers, and filing fees associated with purchase deed or the buyer's mortgage deed, during the abovementioned time-frame
    • 100% exemption from internal revenue stamps fees, registration vouchers, and filing fees associated with the mortgage cancellation deed if sale occurs during the abovementioned time-frame
    • 100% exemption on capital tax gains for the seller of a qualified existing property if said property is sold during the abovementioned time-frame
If you're looking for the ideal home-buyer market, look no further than Puerto Rico. With the current incentives, this type of opportunity just doesn't happen twice. Contact your preferred financial institution in Puerto Rico.

Popular Mortgage - 1-866-358-7070
First Mortgage - 1-866-910-8100
Scotia Mortgage - 1-888-264-4674
Doral Mortgage - 1-800-981-9184
Oriental Mortgage - 1-787-999-9909
Santander Mortgage - 1-800-981-4100

 

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