Buying luxury property in Puerto Rico

1. The purchase process

Puerto Rico is a US territory that uses the US dollar, but its property law follows a civil law tradition. Transfers are governed by the Civil Code, the Real Property Registry Act, and the Notarial Law.

• Offer and option. Most purchases begin with an option or purchase agreement. Under Ley 10-1994, the licensed broker must advise you, in writing and before you sign, of the need for a physical inspection by a licensed professional.
• Due diligence. Typical reviews cover title, outstanding taxes, zoning, flood and environmental conditions, a survey, and an inspection. Title insurance is commonly used.
• The deed. Ownership transfers through a public deed (escritura) signed in person before a notary public. In Puerto Rico, notaries are attorneys.
• Recording. Recording the deed in the Registro de la Propiedad is not technically required for a valid transfer, but it is customary and strongly recommended because it protects your ownership against third parties.

2. Closing costs

Fees set by law, as summarized in Chambers' 2026 Real Estate guide for Puerto Rico:

Internal revenue stamps also apply to deeds. Ask your notary for a written estimate of all closing costs and who pays each one before you sign the option.

3. Property tax

Property tax is administered by CRIM, the Municipal Revenue Collection Center. Assessed values are based on hypothetical 1957 values rather than current market value, and rates vary by municipality, roughly 8.03% to 11.83% of assessed value. Payments are due at the end of June and at year end. A principal residence exemption covers up to $15,000 of assessed value for one home per taxpayer.

CRIM began a mapping and valuation update in January 2025, and the Fiscal Oversight Board has called for a broader reassessment. Ask your attorney how this could affect a specific property.

4. Act 60 in 2026

Many buyers relocating to Puerto Rico consider the Individual Resident Investor incentive under Act 60-2019. In March 2026, Act 38-2026 changed it:

• The program is extended through December 31, 2055.
• Applications filed by December 31, 2026 keep the 0% treatment on eligible income through 2035.
• Applications filed after December 31, 2026 pay 4% on dividends, interest, and post residency capital gains.
• New applicants must not have been Puerto Rico residents in the prior six years.
• Beneficiaries must still buy a primary residence in Puerto Rico within two years.

Reports differ on the exact signing date and on whether the Fiscal Oversight Board has completed its review. Tax rules change often. Work with a Puerto Rico tax attorney before relying on any incentive.

5. Power, water, and flood zones

Generators

LUMA Energy has operated the island's transmission and distribution system since June 2021. Island wide outages occurred on December 31, 2024 and April 16, 2025, the second affecting about 1.4 million customers. Ask whether a generator covers the whole house or selected circuits, its capacity in kW, whether it has an automatic transfer switch, the fuel type and tank size, and its service history.

Cisterns

Water service can also be interrupted. In August 2026, the water authority began alternating 48 hour service in San Juan, Carolina, and nearby municipalities because of drought at the Carraízo reservoir. Ask for cistern capacity in gallons, whether the pump runs on generator power, the filtration installed, and whether it supplies the whole house.

Flood zones

In 2018 the Puerto Rico Planning Board adopted FEMA's Advisory Base Flood Elevation maps for new construction and substantial improvements, including a Coastal A Zone. For oceanfront and riverside properties, confirm the flood designation, elevation, and insurance cost before you commit.

6. Questions buyers ask