In 2024, Puerto Rico's Law 60, also known as the Puerto Rico Incentives Code, continues to offer significant tax benefits, making it one of the most attractive relocation options for individuals and businesses looking to move from the continental United States. This law has not only maintained its appeal but also positions Puerto Rico as an emerging real estate hotspot. Here’s why relocating to Puerto Rico and investing in real estate under Law 60 is still a smart move.
What is Law 60?
Law 60, enacted in 2019, consolidates various tax incentives under one comprehensive code. It includes provisions from the previous Acts 20 and 22, which were designed to encourage foreign investment, stimulate economic growth, and attract high-net-worth individuals. Key benefits include:
- 4% corporate tax rate for qualifying export services.
- 0% tax on dividends, interest, and capital gains for individual investors who become bona fide residents.
- 75-100% tax exemptions on property, municipal, and sales taxes for certain qualifying businesses.
These incentives have drawn thousands of individuals and businesses to Puerto Rico, where they enjoy a favorable tax regime while maintaining access to the U.S. market and infrastructure.
Why Relocating in 2024 Still Makes Sense
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Unbeatable Tax Benefits
The low tax burden remains the primary reason people relocate under Law 60. While the U.S. tax rates continue to climb in certain states, Puerto Rico’s incentives provide a legal way to reduce tax obligations substantially. Especially for business owners, traders, and high-net-worth individuals, the 0% capital gains tax alone makes a compelling case for moving to Puerto Rico. -
Growing Economy
Puerto Rico has seen steady growth in various sectors, including tourism, technology, and real estate development. The local government continues to invest in infrastructure improvements and economic diversification, making it a dynamic place to live and do business. Relocating now means getting ahead of the curve, while the island's transformation is still in progress. -
Lifestyle Advantages
Moving to Puerto Rico offers a unique mix of cultural vibrancy and modern amenities, all while being within U.S. jurisdiction. From beautiful beaches to year-round warm weather, the island offers an attractive lifestyle for retirees, entrepreneurs, and remote workers alike. With direct flights to major U.S. cities, it's easy to stay connected while enjoying the Caribbean lifestyle.
Why 2024 is a Prime Time for Real Estate Investment in Puerto Rico
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Undervalued Market
Despite increasing interest from both local and international buyers, Puerto Rico’s real estate market remains relatively undervalued compared to mainland U.S. properties. In 2024, the island continues to offer excellent opportunities for investors looking for properties at a fraction of the price they would pay in cities like Miami, New York, or Los Angeles. -
High Rental Demand
As more people relocate to Puerto Rico under Law 60 and other incentives, demand for high-quality rental properties has skyrocketed. Short-term rentals, particularly in areas like San Juan, Rincon, and Dorado, have seen a surge in popularity due to both tourism and the growing number of remote workers. Investing in real estate now can offer strong rental income potential. -
Appreciating Property Values
The real estate market in Puerto Rico is on the rise. With ongoing infrastructure improvements and increasing demand from new residents, property values are expected to appreciate in the coming years. Investors who enter the market in 2024 could benefit from substantial long-term gains. -
Diverse Investment Opportunities
Whether you’re looking for luxury beachfront properties, affordable fixer-uppers, or commercial real estate, Puerto Rico offers a diverse range of investment options. Many regions, like Condado, Vieques, and Palmas del Mar, are becoming hotspots for second homes and investment properties.
How to Make the Most of Law 60 and Real Estate Opportunities
- Establish Bona Fide Residency: To take full advantage of the tax benefits under Law 60, it’s important to establish bona fide residency in Puerto Rico. This includes meeting physical presence tests and demonstrating a closer connection to the island than to the mainland U.S.
- Work with Local Experts: Real estate in Puerto Rico comes with its own set of rules and regulations, so working with knowledgeable local real estate agents and attorneys is crucial to navigating the process smoothly.
- Consider Long-Term Growth: Puerto Rico’s real estate market is still developing, and the full potential of the market is expected to unfold over the next several years. Holding onto property long-term could result in substantial returns as the island continues to grow.
Final Thoughts
In 2024, Puerto Rico’s Law 60 remains a powerful tool for individuals and businesses seeking tax benefits and an exceptional quality of life. The real estate market, while still affordable compared to mainland U.S., is poised for growth, making now an excellent time to invest. By relocating to Puerto Rico and investing in its real estate market, you’re not just saving on taxes—you’re tapping into one of the most promising economic environments in the Caribbean.
If you're considering relocating or investing in real estate, 2024 is still a great moment to make your move to Puerto Rico and take advantage of Law 60's benefits before the market fully matures.