Puerto Rico Buying Property in Puerto Rico

Buying Process, Fees & Taxes

Can foreigners buy property in Puerto Rico?

Yes, foreigners can buy property in Puerto Rico and the Government of Puerto Rico welcomes investment from overseas buyers. There are no restrictions on foreign buyers acquiring real estate in Puerto Rico. Title can be acquired fee simple (pleno dominio) and property can be purchased in the name of an individual or a corporation.

Buying process

Buying property in Puerto Rico is a relatively simple process, which typically involves the following steps:

1. Begin your property search.
2. Find your perfect property and submit a written offer.
3. Once you have made an offer on a property and that offer has been accepted, you will typically need to pay a deposit of 5% to 10% which will be held in escrow.
4. You should engage an attorney to assist you with the buying process.
5. 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 of Puerto Rico.
6. The transaction will be complete upon transfer of the balance of the purchase price and payment of all required taxes and fees.

Fees & taxes

Registration and Filing Fees

Several fees must be paid by the buyer to different offices including the Municipal Revenues Collection Center (CRIM), Treasury Department and Registry of Property of Puerto Rico.

These fees typically amount to less than 0.5% of the purchase price.

Notary Fees

The sale and purchase deed must be prepared by a notary whose fees are covered by the seller.

The maximum allowable fee is 1% of the value of the property for the first US $500,000 plus 0.5% of the value over $500,000.

Attorney Fees

We would recommend you seek the advice of a respected local attorney to assist with the transaction. Legal fees typically amount to 0.5% to 1% of the purchase price or, in some cases, a fixed or hourly fee.

Each party covers the cost of their own legal fees.

Property Tax

In Puerto Rico real property is subject to an annual real property tax which varies from 8.03% to 11.83% according to value and location of the property.

Residency & Citizenship

How long can a foreign citizen stay in Puerto Rico?

As Puerto Rico is an unincorporated territory of the USA, US citizens do not require a passport or a visa to visit Puerto Rico.

Citizens of Visa Waiver Program countries including the UK and member countries of the EU who wish to visit the USA (including Puerto Rico) for a vacation or on business must apply for an ESTA (Electronic System for Travel Authorization) prior to departure.

How do you become a resident of Puerto Rico?

American citizens are free to move to Puerto Rico without the need to produce any new documents such as work visas. Citizens of other countries who would like to become a resident of Puerto Rico are required to secure a resident alien status, a work visa, a student visa and/or a temporary visa as is the case in the US mainland and US federal immigration regulations apply in Puerto Rico.

To become a resident of Puerto Rico an individual must spend at least 183 days during the tax year (January 1st – December 31st) in Puerto Rico and have a physical residence on the island. Becoming a resident of Puerto Rico can offer significant tax advantages under Act 60-2019 which consolidated various incentives introduced under Acts 20 and Act 22.

Find out more: How to Get Puerto Rico Residency

How do you become a citizen of Puerto Rico?

As Puerto Rico is a territory of the USA, Puerto Ricans are citizens of the USA.

A foreign national aged over 18 who has lawfully resided in the USA with a Permanent Resident (Green) Card for a minimum of 5 years (3 years in the case of a spouse of a US citizen), is able to understand English and has passed the Naturalization Test may be eligible to apply for citizenship by naturalization.