A territory of the USA, Puerto Rico, together with smaller sister islands Vieques, Culebra and Mona, is renowned for its beautiful and diverse landscape, which varies from white sand beaches to the El Yunque tropical forest and Vieques’s Mosquito Bay.
Well connected to the US mainland, Puerto Rico has a well established tourism industry. The territory which is located between the Dominican Republic to the west and the BVI and US Virgin Islands to the east, is home to 25 golf courses and hosts the Puerto Rico Open. Several of these golf courses are located within beachfront resorts with luxury real estate for sale.
Having added an extra layer of appeal by introducing a range of tax incentives in 2012 for investors purchasing homes on the territory, Puerto Rico’s real estate market has succeeded in luring property buyers and setting Puerto Rico on a path to becoming, what some have called, “the Singapore of the Caribbean.” Significant future real estate development is therefore on the cards, with particular areas of interest including Cayey, Dorado, Miramar, Rincon, Rio Grande, Rio Mar, San Juan and the island of Vieques.
BUYING PROPERTY IN PUERTO RICO
The security of being a territory of the USA with an American legal framework and a US Dollar based economy.
Foreign buyers have the same rights to purchase property as in the USA. Property can be purchased in the name of an individual or a corporation.
Once you have made an offer on a property and that offer has been accepted, you will need to pay a deposit which will be held in escrow. You should engage a lawyer to assist you with the buying process. You will need to sign a public deed for the purchase of the property which should be prepared by a notary, executed in their presence and then filed at the Registry of Property.
There is a transfer tax which varies according to the value of the property. Property tax also varies according to the appraised value of the property.
Puerto Rico is actively seeking to attract high net worth investors to the island. Since 2012, Puerto Rico has offered new residents a range of tax incentives including exemption from Puerto Rican income taxes on dividends, interest and capital gains.