buying a home in Peurto rico

Ok,
I assume you know the island well and have no doubt that PR is for you.

Me and my wife are looking into a 2nd home or to relocate in PR with in the next 2 years. We were there in July 2018 for a week, toured each day and fell in love. We have been researching the culture, real estate, cost of living, jobs etc. We have been talking with an agent from PR and are making another trip this spring to check out some potential properties. I have lived in several states so moving is not a huge deal for me other than being accepted in a "pre-owned" population. I have read and followed some on the politics lately however do not understand all the in's and out's of PR government. I own a business in the states and maybe thats an option in PR. Me and my wife are in out late 50's and still want to enjoy this life we have before our turn is over. I appreciate all the information from you guys and your insight ReyP.
Steve

Hi Steve,
I would suggest you rent for a year while you figure out the right community for you and your family and the stile of living that makes you happy. Properties take on average a year or more to be sold, there is a glut of properties available as people move to the states looking for jobs, so if you get a place and later change your mind it will be hard to get rid of it.

As to business, if you are talking about a service business where the customers are at least 90% outside of PR, you should look into Act 20 and Act 22. These are plans so your corporation only pays around 4% PR tax and Zero federal. I believe only service is covered. One of them is for investors and the other is for services. Not sure how long these laws will be in effect, you have to apply for them and wait to be approved, you must live in the island full time, your corporation must be also registered in PR. Check with a local tax lawyer. Forgot, under those laws you are REQUIRED to donate around 10,000 a year to a government selected charity so depending on your volume, it may not be worth it.

Wow, great info. I have been looking into the Acts and looking on the SURI website. Not the easiest to navigate. I am IT, computer repair/networking. I also have sales here in the states but will maybe cut that out in PR if it's not worth it. TY ReyP

citylist wrote:

Wow, great info. I have been looking into the Acts and looking on the SURI website. Not the easiest to navigate. I am IT, computer repair/networking. I also have sales here in the states but will maybe cut that out in PR if it's not worth it. TY ReyP

Under the acts, you could do services like network administration, OS administration, programming, and also security, they all would be considered services and if your clients are outside of PR. You could take advantage of the tax breaks of the acts, just stay away from doing business from PR clients.