Tax Benefits of Investing in Puerto Rican Real Estate

One of the biggest draws for investors in Puerto Rico is the favorable tax environment—especially if you're a resident or qualify for local incentives.

Key Tax Advantages

• Mortgage interest deduction on rental or primary properties
• Depreciation deductions to offset rental income
• Act 60 incentives may exempt certain passive or export service income
• CRIM discounts for principal residences or new buyers
• Rental income taxed at preferential rates if under certain thresholds

For Example:

If you own a long-term rental property, you could deduct expenses like repairs, insurance, property management, and depreciate the structure over 27.5 years.

Final Tip

Always consult with a Puerto Rico-based accountant or CPA familiar with real estate and Act 60 compliance. A smart tax strategy can significantly increase your ROI.

• Mortgage interest and depreciation deductions
• Possible tax exemptions under Act 60
• CRIM discounts for primary residences
• Passive rental income taxed at lower ratesConsult a CPA familiar with Puerto Rico real estate tax laws to optimize your return.

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