Puerto Rico’s tax incentives under Act 60 are attracting a new wave of investors, entrepreneurs, remote workers, and retired professionals. But once you’ve made the decision to relocate, one major question arises: should you rent or buy property, and how do you go about finding an optimal place to live.
Join us in our free webinar series with a certified realtor explaining how the market works in Puerto Rico, and what you can expect. Register for this and other webinars on this page.
Frequently Asked Real Estate Questions
In our webinars, we cover these hot topics:
- How the Puerto Rico real estate market differs from the States
- What buyers need to know about pre-qualification and financing
- How to search for inventory and understand what is actually available
- What mainland buyers should know before making an offer
- Considerations for buyers exploring Puerto Rico’s Act 60 tax incentives
- How a local buyer’s agent can help you navigate the process from wherever you live
Puerto Rico Residency Requires a Year-Round Home
Whether you rent or buy, qualifying for Act 60 benefits requires securing a real lease or a home in your name. Even if you are travelling for long stints, it is necessary that Puerto Rico is clearly established as your main (or only) home.
For those pursuing the Act 60 Investor tax incentive, it is required to acquire your main Puerto Rico residence within two years of being approved. Even for those who aren’t required to purchase real estate, it can still be advantageous, though it may be worthwhile to rent for a while at first to get to know the island.
Why Many Act 60 Applicants Choose to Buy
Buying real estate offers several advantages to Act 60 decree holders:
- Demonstrates commitment to bona fide residency
- Helps meet the presence and lifestyle requirements for Act 60
- Avoids rising rental costs in popular areas like Dorado, Condado, or Palmas del Mar
- Acts as a long-term investment with potential appreciation
Popular Areas for Act 60 Residents
While Act 60 applicants can live anywhere in Puerto Rico, some neighborhoods are more popular due to amenities, security, and proximity to international schools or business hubs:
Common choices include:
- Dorado – Gated communities, bilingual schools, golf courses, and expat-friendly
- San Juan (Condado, Miramar, Ocean Park) – Walkable, cosmopolitan, close to nightlife and culture
- Palmas del Mar – Beachfront resort community with its own marina and golf
- Guaynabo – Upscale, suburban, popular with professionals and families
- West Coast (Rincon, Isabella, Aguada) – Quieter, closer to nature, more laid-back culture
Each location offers different benefits depending on your lifestyle and business needs.
What to Know Before Buying
1. You’ll Need a Local Attorney
Real estate transactions in Puerto Rico require a notary attorney to draft and execute the deed of sale. It’s highly recommended to hire a lawyer early to handle:
- Title search
- Drafting the purchase contract
- Ensuring taxes and liens are cleared
2. Financing Is Available—but Limited
If you plan to finance your purchase, be aware:
- Some U.S. banks do not finance homes in Puerto Rico
- Local banks (like Banco Popular) offer mortgages, but terms may differ
- Many buyers opt for cash purchases to simplify the process
3. Property Taxes Are Low
Puerto Rico has relatively low property taxes. Plus, Act 60 decree holders may receive partial or total exemptions on certain types of real estate if tied to a business.
Proving Bona Fide Residency
To maintain your Act 60 status, the IRS and Puerto Rico Treasury (Hacienda) require proof of genuine relocation.
Buying a primary residence is one of the strongest signals of bona fide residency. It helps meet factors like:
- Closer ties to Puerto Rico than any U.S. state
- Having your main home, belongings, and family on the island
- Staying the appropriate number of days per year in Puerto Rico
Renting is allowed (unless you have the Act 60 Investor incentive), but purchasing can strengthen your legal standing if your residency is ever reviewed.
Closing Costs and Taxes
Buyers should prepare for the following costs:
- Legal fees
- Notarial stamp duties
- Title insurance (optional, but recommended)
- Property registration fees
There’s no property transfer tax in Puerto Rico, but make sure all municipal taxes are paid before closing.
Final Thoughts: Ready to Find Your Puerto Rico Home?
For Act 60 applicants, buying real estate isn’t just about putting down roots—it’s a key part of qualifying for and maintaining your tax decree. Whether you’re looking for a condo in San Juan or a villa in Dorado, having local guidance makes a difference.
Need help finding your perfect property or navigating the relocation process?
Attend our free webinars or Schedule a free consultation with Puerto Rico Advantage and get expert insights tailored to your Act 60 journey.
