Tax Incentives for Owning Real Estate and Residing in Puerto

Puerto Rico has emerged as an appealing destination for U.S. citizens seeking significant tax benefits, thanks to the provisions outlined in Law 60, also known as the Puerto Rico Incentives Code. This legislation consolidates and expands a variety of tax incentive programs designed to attract individuals, businesses, and investors to the island. By offering unparalleled tax advantages, it has become a catalyst for economic growth and has created a sense of urgency among entrepreneurs and investors to establish their presence in Puerto Rico.

One of the most notable aspects of Act 60 is its benefits for U.S. citizens who become bona fide residents of Puerto Rico. These benefits include substantial reductions in federal income tax obligations, as well as access to favorable local tax rates. For instance, eligible individuals can enjoy a 0% capital gains tax rate on Puerto Rico-sourced income, a 4% corporate tax rate for export services, and exemption from taxes on dividends and interest income.

For real estate investors, these incentives provide a dual advantage. On one hand, they can capitalize on lower property taxes and favorable tax treatment for income generated from rental properties. On the other hand, the growing demand for housing and commercial spaces driven by the influx of new residents and businesses has created lucrative opportunities in the real estate market.

Beyond financial benefits, Act 60 is fostering a vibrant community of entrepreneurs, innovators, and remote workers. By relocating to Puerto Rico, investors not only gain access to these tax breaks but also contribute to the island's economic revitalization. The combination of financial incentives and a high quality of life, complete with tropical weather, rich culture, and a strategic location, makes Puerto Rico an increasingly attractive destination for those looking to live, work, and invest.

In summary, the tax incentives under Law 60 have positioned Puerto Rico as a premier destination for U.S. citizens aiming to reduce their tax liabilities while enjoying the benefits of island life. This has created a unique opportunity for real estate investors and businesses to establish themselves in a growing and dynamic market.