- Puerto Rico is becoming increasingly popular among high-net-worth homebuyers and business owners.
- Many high net-worth individuals (HNWIs) are making Puerto Rico their primary residence due to Act 60.
- Under Act 60, homebuyers and business owners can escape federal income tax on income sourced in Puerto Rico.
According to local estate agents, high net-worth individuals (HNWIs) view Puerto Rico as an attractive location to invest in real estate due to tax incentives, warm temperatures and the rise of teleworking.
Puerto Rico is approximately two and a half hours away from Miami by plane and is renowned for its all-year-round warm climate, beautiful scenery and places of historical significance, such as Old San Juan.
The median sale price of homes valued at over $1m in Dorado Beach, an affluent area on the island’s north coast, has skyrocketed to $6.2m. Sotheby’s International Realty reported this tremendous increase from the previous figure of $3.4m in 2022.
Despite a short-term price decline at the end of 2022, Puerto Rico’s luxury housing market is increasing rapidly. Local estate agents state that the boom in residential real estate is due to Act 60, which allows individuals and businesses to relocate to Puerto Rico.
Under Act 60, wealthy investors and developers are naming Puerto Rico as their primary residence by spending 183 days of the year on the island, thus escaping federal income taxes on income sourced there.
Puerto Rico’s Department of Economic Development and Commerce reported that the number of HNWIs granted income tax exemption increased from 514 in 2019 to 1,238 in 2021 and is predicted to rise again.
HNWIs interested in purchasing a new primary residence overseas in Puerto Rico must utilise a secure online money transfer system.
Peter Bazeli, a principal at residential and hospitality development consulting firm Weitzman, stated that Puerto Rico’s tax incentives have transformed the island from an appealing holiday spot to an attractive place for affluent HNWIs who can transfer their businesses, such as hedge funders, crypto investors and other entrepreneurs.
To benefit from advantageous tax incentives, investors should use secure methods of money transfer to relocate their businesses abroad.
HNWIs interested in investing in Puerto Rico’s luxury real estate and business incentives can use our online money transfer comparison tool to compare foreign exchange rates.
