Considering Act 60 and picturing mornings on Condado Beach? Your housing choice is central to proving bona fide residency, and the right condo or lease can make day‑to‑day life easier while you build a clear paper trail. You want practical guidance, not jargon, so you can decide whether to buy or lease, what to document, and how Condado fits your lifestyle. Below, you’ll get a streamlined overview, a residency-friendly checklist, and next steps to move forward with confidence. Let’s dive in.
Act 60 basics and why housing matters
Act 60 brings Puerto Rico’s incentives into one code and includes individual and business programs that apply only to bona fide residents who follow the proper procedures. For official context on incentives and decrees, review the Puerto Rico Department of Economic Development and Commerce incentives information and confirm current steps with counsel.
Residency determinations look at where you truly live. Housing helps show three core tests: physical presence, tax home, and closer connection. For how U.S. federal rules interact with Puerto Rico residency, see the IRS overview in Publication 570 and related guidance on U.S. possessions rules.
- Physical presence: Aim to spend a substantial number of days in Puerto Rico during the year. Many point to the 183‑day threshold, but authorities look at all facts.
- Tax home: Your main place of work or business. A primary residence in Puerto Rico supports this, along with local operations.
- Closer connection: Evidence you have stronger ties to Puerto Rico than elsewhere, such as local ID, voter registration, bank accounts, and daily life anchors. Puerto Rico’s Department of the Treasury (Hacienda) and the IRS offer guidance on these factors.
Buy vs. lease in Condado
Both buying and leasing can support bona fide residency if your overall life is centered here. Your decision comes down to risk tolerance, lifestyle, timing, and how you want to document your presence.
Buying in Condado
Buying a primary residence signals intent and stability. In premium beachfront towers, you gain more control over upgrades and privacy, and you may benefit from long‑term appreciation.
Consider tradeoffs. Expect meaningful closing costs, HOA fees in full‑service buildings, and higher windstorm and flood insurance in coastal San Juan. Lenders may require specific coverage and backup power. Building elevation and FEMA flood zone also affect long‑term risk and insurability.
Residency angle: Ownership is strong evidence of a permanent place of abode, but it is not enough on its own. You still need physical presence and closer‑connection facts to align. Review the IRS framework in Publication 570 as you plan your timeline.
Leasing in Condado
Leasing gets you established quickly with less capital tied up. A long‑term lease helps you start building day‑by‑day presence and utility history, which supports your residency narrative.
Keep flexibility in mind. Short‑term or transient rentals are weaker evidence unless you have a long‑term lease and truly live full time in Puerto Rico. Building rules and storage can also affect your setup.
Residency angle: A 12‑month or longer lease, utility bills in your name, and local ties like a Puerto Rico driver’s license and bank accounts can strongly support bona fide residency.
Shared housing factors that matter
Whether you buy or lease, focus on the building, the paper trail, and operational details.
- Resiliency and code: Look for reinforced glass, impact‑rated openings, and post‑Maria upgrades.
- Backup power: Many luxury buildings have generators. Understand fuel, maintenance, and tests.
- HOA health: Review budgets, reserves, special assessments, and insurance policies.
- Short‑term rentals: Know San Juan municipal and building rules if rental income is part of your plan.
- Financing: Local banks and some U.S. lenders finance Puerto Rico properties. Many high‑net‑worth buyers use cash to simplify and move faster.
Build your residency paper trail
Create a clean, time‑stamped record from day one. The following items are commonly requested by advisors and agencies.
Housing documents
- Long‑term lease with your name, address, and term, or a purchase deed and closing statements.
- HOA bylaws, fee statements, and any recent reserve studies or minutes.
- Property tax receipts, plus electric, water, and internet bills in your name.
- Homeowner or renter insurance policies, including wind and flood if applicable.
Presence and daily life evidence
- Travel records and a daily calendar tracking days in Puerto Rico and elsewhere.
- Puerto Rico driver’s license or ID, voter registration.
- Local bank and credit card statements showing routine local spending.
- Medical registrations or prescriptions filled in Puerto Rico; school records for dependents if relevant.
- Shipping records for household goods moved to Puerto Rico.
Financial and tax paperwork
- Prior federal and state tax returns, and Puerto Rico filings as applicable.
- Act 60 applications, decrees, or registrations.
- Employment or business contracts that show a Puerto Rico tax home and local operations.
Corroborating statements
- Notarized landlord or occupancy affidavits.
- Professional statements from your accountant or attorney documenting your intent to make Puerto Rico your primary home.
Condado neighborhood snapshot
Condado is an urban beachfront pocket in San Juan with luxury condos, hotels, restaurants, boutiques, and nightlife within a short walk. You are minutes to Old San Juan and roughly 10 to 20 minutes to SJU, which is ideal if you travel often. Many buildings offer concierge services, private security, fitness centers, pools, and garage parking.
Plan for coastal realities. Some blocks sit in FEMA flood zones, so building elevation and first finished floor matter for your risk profile and insurance. You can review flood zones for specific addresses using the FEMA Flood Map Service Center. Generator capacity, building staffing, and HOA governance also vary by tower. Central locations maximize walkability but may come with more tourist activity, so evaluate noise and privacy at different times of day.
Key decision points:
- Floor level and views versus flood exposure and pricing.
- Age of building versus extent of resiliency upgrades.
- Service level, visitor policies, and security measures.
- Parking arrangements and storage for household goods.
Your first steps
Get organized early and align your housing path with residency rules. The following actions help you move from research to decision with fewer surprises.
- Start your presence log the day you arrive and gather core documents from the checklist above.
- Speak with a Puerto Rico tax attorney experienced in Act 60 to confirm eligibility, timing, and decree steps. You can review high‑level IRS guidance in Publication 570, then tailor your plan locally.
- Engage a local agent with luxury Condado experience and relocator support to compare buy versus lease options and review HOA financials.
- Obtain property‑specific insurance quotes for wind and flood, and confirm building policies.
- For purchases, order title work and inspections, and assess hurricane hardening.
- Tour properties at different times to gauge traffic, sound, and building operations.
Partner with a trusted local advisor
Your goal is simple: a Condado home base that supports bona fide residency and fits how you live. With founder‑led accountability and discreet, white‑glove guidance, you can move quickly and confidently from plan to keys in hand. If you are weighing buy versus lease, want a clear residency paper trail, or need property‑specific risk and HOA insights, connect with Ana Rivera for a private consultation and a tailored Condado strategy.
FAQs
What is Act 60 and how does it relate to Condado housing?
- Act 60 consolidates Puerto Rico’s incentives for individuals and businesses who become bona fide residents, and your Condado housing choice helps demonstrate physical presence, tax home, and closer connection.
How many days must I spend in Puerto Rico for residency?
- Many use the 183‑day benchmark as a guideline, but authorities review all facts under the IRS and Puerto Rico frameworks, so plan your year and track days carefully.
Does buying a condo automatically make me a bona fide resident?
- No, ownership strengthens the case for a permanent place of abode, but you still need physical presence and closer‑connection evidence like local ID, banking, and daily life records.
Can I rely on short‑term rentals to show residency under Act 60?
- Short‑term or transient stays are weaker evidence; a 12‑month or longer lease with utilities in your name and true day‑to‑day living supports residency more effectively.
What insurance should I expect for a Condado waterfront condo?
- Plan for windstorm and flood coverage with higher premiums in coastal San Juan, and review building elevation, FEMA flood zone, and HOA policies before you bind coverage.
