Property tax for new house build?

Summer2028 Member

Member since 31 August 2023

Summer2028Member31 August 2023 16:41:59

I'm planning on retiring to Puerto Rico and a few years ago bough land with the purpose of building a retirement new home.

Building a new house is extremely expensive and a lot more $$ than buying an existing home. As of now, I have a budget for building the house and speaking to architects currently.

In the city that I currently live in the US, newly build housing property taxes are excessively unaffordable when compared to the older housing stock. There's a formula that keeps the valuation of older homes much lower, but for newer homes the tax rate is applied to the full final value of construction.

Does anyone know how new builds are assessed in Puerto Rico vs existing older homes. Is there a formula or tax rate that is used to figure out what my future property tax might be based on the construction value or neighborhood/municipality? Or what resources I can use or ask about this, to figure out an possible answer to this question?

10YRStoRincon Active member

Member since 27 April 2017

10YRStoRinconActive member31 August 2023 23:01:38

@Summer2028. From what I understand there are no property taxes (CRIM) if you plan to live in the home you build. Which is awesome!!

We are in the same boat as you. We bought a lot with the hopes to build when we retire in 3 years, but the cost of building, from what I hear, is astronomical. We really have our hearts set on building.

If you don't mind, I would like to hear more from your experience after you meet with the architect. I'm hoping there are good builders that are not expensive.

Wishing you the best with the process.