Chat with us, powered by LiveChat
Why Get a House for Sale in Puerto Rico? Guide for Relocating Americans

Why Get a House for Sale in Puerto Rico? Guide for Relocating Americans

Puerto Rico, a U.S. territory, offers a unique opportunity for Americans looking to relocate. The island combines natural beauty, such as beaches and rainforests, with a rich cultural background, all within a familiar American framework. American laws, the use of the U.S. dollar, and English as a common language simplify the transition for American buyers. This guide explores the benefits of buying a home in Puerto Rico, highlighting the diverse Puerto Rico real estate market that caters to a range of preferences and budgets.

Benefits for Americans Considering Living in Puerto Rico 

The prospect of purchasing homes in Puerto Rico may seem daunting to some Americans, but the reality is quite the opposite. The following benefits highlight the significant advantages and rewards of living in this vibrant U.S. territory:

No Passport Requirements

U.S. citizens do not need a passport to travel to Puerto Rico, making it an easily accessible destination.

Use of the U.S. Dollar

As a U.S. territory, Puerto Rico uses the U.S. dollar, offering Americans a seamless financial transition without the need for currency exchange.

Familiarity with U.S. Federal Laws

While Puerto Rico has its own set of laws, it also operates under U.S. federal law, providing a familiar legal environment for Americans.

Tax Incentives Under Acts 20, 22, and Act 60

Reduced Income Tax Rates

Acts 20 and 22 reduce the local income tax rate from 0% to 4%, offering significant tax savings. This is good news for U.S. citizens who wish to work and stay in Puerto Rico.

100% Tax Exemption on Capital Gains

Act 60 allows investors to avoid capital gains taxes on profits from selling Puerto Rican property, encouraging investment.

Exemption on Dividend and Interest Income

Income from dividends and interest earned by resident investors in Puerto Rico is exempt from local income taxes until 2036, enhancing the appeal for income-focused investments.

Long-Term Capital Gain Exemption

New residents enjoy a full exemption from local income taxes on long-term capital gains recognized before 2036, promoting financial growth.

Understanding Puerto Rico's Real Estate Market

Image Source:

Puerto Rico's real estate market presents a significant opportunity for developers and investors, primarily because it is the largest opportunity zone in the U.S., with over 98% of the island qualifying. Enhanced by tax incentives under Act 60-2019, this has boosted the island's economic development. 

The market is attractive to high-end buyers, with notable sales like the $14.6 million property at West Beach in Dorado Beach Resort in 2022. Key areas include Dorado Beach, Condado, and St. Regis Bahia Beach Resort. 

Range of Housing and Real Estate Properties Available

Puerto Rico offers a diverse range of real estate options, catering to different lifestyles and preferences.

Type of Property


Class of People

Typical Locations

Beachfront Villas

Luxurious, often with swimming pools and modern amenities. Ideal for those seeking a lavish lifestyle or investment in holiday homes.

Affluent individuals, investors in luxury properties, and celebrities.

Isla Verde beach strip, Dorado Beach Resort, Rio Grande.

Urban Apartments

Modern and compact, suited for city living. Often part of high-rise buildings with amenities like gyms and pools.

Young professionals, small families, singles, and real estate investors.

San Juan, Condado, Hato Rey.

Gated Community Homes

Secure, exclusive communities, often with shared amenities like parks and clubhouses.

Families, retirees, expatriates, and professionals desiring privacy and security.

Areas like Dorado, Guaynabo, and suburban regions.

Classic Homes

Traditional homes, often reflecting Spanish colonial architecture, with unique designs.

Culture enthusiasts, history lovers, and families prefer a conventional lifestyle.

Historic areas and older neighborhoods in cities and towns.


Multi-unit complexes offer a community lifestyle with shared facilities.

Singles, small families, retirees, and individuals seeking a maintenance-free lifestyle.

Urban centers, near beaches, tourist hotspots.


Medium-sized, often in rows with shared walls, offering a balance of privacy and community.

Middle-income families, first-time home buyers, and professionals.

Suburbs, residential areas near urban centers.

Luxury Estates

Large, opulent properties with premium features and extensive grounds.

High net worth individuals, celebrities, business magnates.

Exclusive neighborhoods, beachfront locations, and secluded areas.

Commercial Properties

Properties designed for business use, including office spaces, retail, and warehouses.

Business owners, investors, corporations.

Business districts, industrial areas, and prime commercial zones.

Land and Development Projects

Empty plots of land or areas earmarked for development.

Investors, developers, and corporations looking to build or expand operations.

Varied, from urban to rural areas depending on the project.

How is Living in Puerto Rico?

If you get to live in Puerto Rico, a unique blend of cultural richness, natural beauty, and a relaxed lifestyle is what this place can offer. 


Puerto Rico is an island territory known for its rich cultural heritage permeating daily life. The lifestyle is serene, informal, carefree, and relaxed, influenced by its warm tropical climate. Puerto Ricans are known for their hospitality and strong sense of community.


Spanish is the primary language, and English is also common, but only in urban areas and tourist hotspots. This linguistic diversity creates a welcoming environment for expatriates. Learning and engaging in both Spanish and English can greatly enrich one's experience in Puerto Rico.


The healthcare system consists of modern facilities and highly trained medical professionals. Expats are advised to explore private health insurance options for comprehensive coverage. 


Puerto Rico offers a range of educational opportunities, including public and private schools and reputable universities. Many schools follow the American curriculum, providing familiarity and continuity for children's education​.


Puerto Rico's transportation system includes roads, highways, freeways, airports, ports, and railway systems, serving around 4 million people. The island has 30 airports, the largest of which is Luis Muñoz Marín International Airport. 


Buying property in Puerto Rico offers numerous advantages for Americans, such as no passport needed for travel and using the U.S. dollar, and its beneficial tax incentives make it financially attractive. Puerto Rico's real estate market is varied, offering everything from luxury beachfront villas to urban apartments and secure gated communities. The island's rich culture, stunning natural scenery, and advanced infrastructure, including top-notch healthcare and education, enhance its appeal as a perfect living destination for diverse lifestyles.

With these in mind, have you tried considering a life in Puerto Rico? We at Christie's International Real Estate Puerto Rico are here to help. We are located in San Juan, a leading real estate firm specializing in luxury and beachfront properties. The expertise of our luxury realtor spans prestigious neighborhoods like Condado, Ocean Park, Old San Juan, and others. 

Renowned for our strong team of brokers, we excel in maximizing property value through effective marketing and attracting qualified buyers. We offer a full range of services in sales, acquisitions, and rentals of high-end real estate. We are the definitive choice for those seeking expert real estate advice and services in the region, eliminating the need to look elsewhere.

Don't miss this opportunity to make your Caribbean dream a reality. Call Christie's International Real Estate Puerto Rico today to start your journey towards owning a piece of paradise!


What is the Cost of Living in Puerto Rico Compared to the Mainland U.S.?

The cost of living in Puerto Rico, including the cost of homes, varies depending on the area but is generally lower than in many parts of the mainland U.S. Essentials like groceries and utilities tend to be more affordable, although some imported goods can be pricier. Housing costs can vary greatly: they are typically lower than in major U.S. cities but can be higher in popular tourist areas or luxury neighborhoods.

Are There Any Specific Regulations for Foreigners Buying Property in Puerto Rico?

As a U.S. territory, Puerto Rico does not impose additional regulations on U.S. citizens purchasing property. However, foreign buyers from outside the U.S. may face certain restrictions or requirements, such as obtaining a local bank account for transactions. It's always recommended to consult with a local real estate attorney to understand any specific legalities involved.

What Is the Buying Process in Puerto Rico for Americans?

Choosing the Location

Popular areas for luxury and comfort in Puerto Rico include San Juan, Palmas del Mar, Dorado Beach, and Bahia Beach.

Securing Financing

Getting preapproval for a mortgage is important, which usually requires a good credit score and a 20% down payment. FHA loans are available for lower down payments but expect higher rates and additional fees like Hacienda stamps and attorney's fees.

Hiring Professionals

Engaging a buyer's agent and a lawyer is advisable to navigate the market and ensure favorable terms, especially for those not fluent in Spanish.

Conducting a Title Study

This is crucial due to Puerto Rico's complex inheritance laws, which can affect property marketability. The cost is typically around $100.

Closing the Deal

The closing process requires physical presence, often at the lending bank's office, and can be lengthy due to legal formalities. Understanding community property and inheritance laws is important, especially for foreign buyers.


Join a select group

Exclusive off-market listings and news

Join a select group

With one of PR's largest teams, CIRE PR offers more transaction support, global reach, and on-the-ground experience than any other brokerage in San Juan.

Follow us on Instagram